PayPal Holdings, Inc. (PYPL) intrinsic value & 10-year financials
PayPal Holdings, Inc. (PYPL) has a Graham intrinsic value of $179.70 per share. At $56.70 on Oct 17, 2026, the stock trades 68% below that value. Over the last 10 fiscal years revenue grew 13.2% a year to $33.2B, with an average return on invested capital of 15.6%.
- Graham intrinsic value
- $179.70
- Share price (Oct 17, 2026)
- $56.70
- Price vs Graham value
- 68% below
- Market cap
- $54.9B
- Revenue (FY2025)
- $33.2B
- Revenue growth (10-yr CAGR)
- 13.2%
- ROIC (10-yr avg)
- 15.6%
- Free cash flow (FY2025)
- $5.6B
PYPL 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $33.2B | $5.2B | $5.41 | $5.6B | 18.3% | 21.4% |
| FY2024 | $31.8B | $4.1B | $3.99 | $6.8B | 16.7% | 17.8% |
| FY2023 | $29.8B | $4.2B | $3.84 | $4.2B | 16.9% | 17.3% |
| FY2022 | $27.5B | $2.4B | $2.09 | $5.1B | 13.9% | 11.3% |
| FY2021 | $25.4B | $4.2B | $3.52 | $5.4B | 16.8% | 17.0% |
| FY2020 | $21.5B | $4.2B | $3.54 | $5.0B | 15.3% | 13.7% |
| FY2019 | $17.8B | $2.5B | $2.07 | $3.9B | 15.3% | 18.0% |
| FY2018 | $15.5B | $2.1B | $1.71 | $4.7B | 14.2% | 15.9% |
| FY2017 | $13.1B | $1.8B | $1.47 | $1.9B | 16.2% | 12.7% |
| FY2016 | $10.8B | $1.4B | $1.15 | $2.5B | 14.6% | 10.4% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
PayPal is a consistent compounder, expanding top-line revenue at 13.2% annually over the past decade.
PayPal has earned high returns on invested capital, averaging 15.6% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.
Over the decade, PayPal shows that management has aggressively returned capital to shareholders by retiring 20.5% of outstanding shares, and that the company has leveraged its balance sheet to sustain operations.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, PayPal is modeled at 15.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $179.70 per share.