PYPLNEUTRAL

PYPL EV/EBITDA Analysis

8.6x

Updated 321h ago·SEC filings & market data

Key Takeaway

EV/EBITDA measures a company’s total value (market cap plus debt minus cash) relative to its operating earnings, with a lower multiple generally meaning cheaper valuation.

Sector Performance

24th percentile

PYPL

8.6x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

7.9x(Jul 2026)

↓ Declining

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Deep Analysis

EV/EBITDA measures a company’s total value (market cap plus debt minus cash) relative to its operating earnings, with a lower multiple generally meaning cheaper valuation.

At 8.6x, PYPL trades well below the sector median of 13.6x and sits in the 25th percentile among peers, indicating it is cheaper than most comparable companies. The year-over-year change is not available, but the quarter-over-quarter move shows the multiple rising 8.6% from 7.9x to 8.6x. The combination of a low valuation with a rising multiple suggests the stock is becoming less inexpensive, yet still offers room for re-rating if earnings hold. This level and trend present a moderate opportunity for value investors, balanced by the risk that the increase may reflect deteriorating cash flow rather than investor enthusiasm. Overall, the EV/EBITDA picture aligns with the NEUTRAL verdict: the valuation is supportive but not compelling enough to shift the outlook in either direction.

Frequently Asked Questions

What does the EV/EBITDA tell investors about PYPL?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are PYPL's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.