PYPL - Embedded Expectations Analysis - 2018 11 14
PayPal Holdings, Inc. (PYPL:USA) currently trades well above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 32.4x Uniform P/E. However, even at these levels, the market is pricing in bearish expectations for the firm, and management has concerns about their ability to sustain growth in their merchant working capital business, aggressive pricing increases, and growth strategiesSpecifically, management appears to lack confidence in their ability to maintain growth in their merchant working capital business, and may lack confidence in their ability to covert PayPal credit offerings on eBay. Additionally, they may lack confidence in their ability to increase their market share through the use of aggressive pricing strategies, and appear to be exaggerating their potential for new partnership opportunities as they continue to move towards an open platform strategy. Also, they may lack confidence in their ability to continue to drive strong financial results with their current targeted growth strategies, and may be exaggerating their natural leverage from efficiencies of scale. Furthermore, they may be concerned about their shareholder return strategies, and their Walmart cash withdrawal initiative
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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