PYPL

Potentially Undervalued

PayPal Holdings, Inc. — PEG Ratio Analysis

0.93

PEG Ratio

PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions

PEG ratio is generally unreliable for Financial Services companies

0.93

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$43.65

TTM EPS

$5.33

P/E Ratio

8.19

Growth Rate

8.8%

5-Year EPS CAGR

Sector

Financial Services

Financial - Credit Services

Calculated

6/17/2026

12:43:24 PM

Peer Comparison

Sample Size

8 peers

Industry Median PEG

1.63

25th Percentile

1.39

75th Percentile

3.88

PYPL PEG (0.93) vs Industry Median (1.63): 43% discount

Symbol	Company	PEG	P/E	Growth	vs PYPL
NVDA	NVIDIA Corporation	0.34	31.8	93.9%	-64%
AXP	American Express Company	0.65	21.3	32.5%	-30%
MA	Mastercard Incorporated	1.39	29.0	20.9%	+49%
CRM	Salesforce, Inc.	1.58	18.7	11.9%	+70%
XYZ	Block, Inc.	1.68	58.3	34.7%	+81%

How to Interpret PEG Ratio

PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.

PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."

PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.

Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.