PYPLNEUTRAL

Return on Equity (ROE)

25.1%

Updated 413h ago

Sector Performance

76th percentile

PYPL

25.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

With a Return on Equity (ROE) of 25.1%, PYPL generates $0.251 in profit for every dollar of shareholder equity — a measure of how efficiently a company uses its capital to produce earnings.

This figure sits well above the sector median of 14.3%, placing PYPL in the 75th percentile among its peer group. Trend data for this metric is not available: the year-over-year change, quarter-over-quarter change, and last eight quarters of history are all reported as N/A, with only the current value provided. Without a trend, investors cannot assess whether this high ROE is improving, stable, or deteriorating. The combination of a strong level and absent trend suggests limited visibility into the metric’s direction, adding uncertainty to the risk profile. This strong relative performance supports the overall NEUTRAL verdict — the ROE is a positive indicator of profitability, but the lack of trend data prevents it from tilting the view to bullish or bearish.

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: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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.