PYPLNEUTRAL

EV/EBITDA

6.2x

Updated 413h ago

Sector Performance

15th percentile

PYPL

6.2x

Sector Median

13.7x

Sector Avg

18.4x

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Deep Analysis

PYPL’s EV/EBITDA of 6.2x means the company’s total enterprise value is 6.2 times its earnings before interest, taxes, depreciation, and amortization – a low multiple that often indicates a cheap valuation relative to profits.

Against sector peers, this sits well below the 14.3x sector median, placing PYPL in the 7th percentile, meaning 93% of peers carry higher multiples. The year-over-year change is not available, but quarter-over-quarter the metric edged up 1.8% from 6.0x to 6.2x; the eight-quarter trend data is also unavailable. A low EV/EBITDA combined with a slight upward move suggests the stock remains undervalued versus peers, yet the recent increase could hint at improving sentiment or earnings compression. This metric generally supports the NEUTRAL verdict because the deep discount may attract value investors, but the lack of a clear downward trend limits a strong bullish signal.

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: LSPD (-24.2x), BRZE (-24.5x), EVGO (-25.7x), NIO (-36.8x), SNAP (-38.8x).

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.