PYPL - Embedded Expectations Analysis - 2018 09 17
PayPal Holdings, Inc. (PYPL:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 34.7x Uniform P/E. However, even at these levels, the market is pricing in bearish expectations for the firm, and management has concerns about international expansion, their partnerships with financial institutions, and sustaining revenue strengthSpecifically, management may lack confidence in their ability to create an effective personalized checkout experience for their clients and to increase value for their customers by combining their scale and platform capabilities with Hyperwallet's payout solutions. Also, they may lack confidence in their ability to expand their international presence with their intended acquisition of iZettle, an omni-commerce platform in Europe and Latin America, and to capitalize on opportunities to bolster their position as a leading open digital payment platform. Furthermore, they may lack confidence in their ability to sustain top line growth, and may be concerned about the evolution of their relationship with eBay. Also, they may be concerned about their partnerships with financial institutions, and may be exaggerating their scalability in customer support and operations. Moreover, they may be concerned about their corporate cash build, and the sustainability of significant revenue momentum
PayPal Holdings is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The company's combined payment solutions include its PayPal, PayPal Credit, Braintree, Venmo, Xoom and iZettle products and services. PayPal's payment solutions enable the company's customers to send and receive payments. PayPal helps merchants and consumers connect, transact, and complete payments, whether they are online, on a mobile device, in an app, or in person. The company provides proprietary payment solutions accepted by merchants that enable the completion of payments on the company's Payments Platform on behalf of its customers.
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