PYPLNEUTRAL

PYPL Return on Equity (ROE) Analysis

24.5%

Updated 321h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so a 24.5% ROE means PYPL earns $0.245 for every $1 of equity invested.

Sector Performance

76th percentile

PYPL

24.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

25.1%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so a 24.5% ROE means PYPL earns $0.245 for every $1 of equity invested.

This level sits well above the sector median of 13.5%, placing the firm in the 76th percentile among sector peers. The trend data is N/A for the last 8 quarters and year-over-year, but the most recent quarter shows a -2.4% change, moving from 25.1% to 24.5%. The combination of a high ROE with a slight quarterly decline suggests strong profitability is intact, though momentum has softened recently. This implies limited new downside risk, but also no clear acceleration in returns. The metric supports the overall NEUTRAL verdict: the high relative ROE argues for holding, while the recent dip prevents an upgrade to positive.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PYPL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are PYPL's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.