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    PayPal Holdings (PYPL) As Softer EPS Keeps Its Undervalued Narrative In Play

    Simply Wall St·11/06/2026 08:32:40
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    PayPal Holdings (PYPL) just posted third quarter earnings that showed basic earnings per share from continuing operations at US$1.26, slightly below the US$1.31 reported a year earlier.

    Against that earnings backdrop, PayPal Holdings’ recent share price action has been mixed. The stock eased 2.06% over the past day, even after a 7-day gain of 3.53% and a 1-month share price return of 7.97%. Over longer periods, the 1-year total shareholder return is down 10.02% and the 5-year total shareholder return has fallen 70.49%. This points to short-term momentum improving but longer-term confidence still rebuilding as investors weigh new partnerships, dividend payments and the latest guidance commentary.

    Scan how PayPal Holdings compares with other payment and fintech players on valuation, quality and recent returns using our curated 42 high quality undervalued stocks.

    After that bounce off multi year lows but with basic EPS slightly softer and a takeover premium largely gone, how much of PayPal Holdings’ valuation reset is complete, and how much room is left on the table?

    Most Popular Narrative: 13% Undervalued

    PayPal Holdings last closed at $58.96, while the most followed narrative on the stock anchors fair value at about $68. That gap frames the current debate around whether this reset in expectations has already gone far enough.

    The market prices PayPal (approximately 8x earnings) as a structurally dying payments company. The numbers show something else: about $6.8B in annual free cash flow, a net-cash balance sheet (about $13.5B cash vs. about $11.6B debt), around 440M active accounts, and total payment volume of about $464B per quarter, still growing around 11%.

    See why 92 investors see PayPal Holdings as 13% undervalued.

    Result: Fair Value of $68 (UNDERVALUED)

    Still, this PayPal Holdings narrative can unravel if Branded Checkout stalls again, or if lower margin payment volumes squeeze profitability harder than expected.

    Find out about the key risks to this PayPal Holdings narrative.

    Next Steps

    Does that cautiously upbeat tone on PayPal Holdings match your own read of the numbers, or does it feel too generous given recent performance? Check the underlying data, stress test your assumptions, and then see what others flag as the 2 key rewards.

    Looking for more ideas beyond PayPal Holdings?

    If PayPal Holdings has you rethinking where capital works hardest, do not stop here. Use targeted screeners to surface fresh ideas before the crowd moves.