PYPL - Embedded Expectations Analysis - 2021 04 28
PayPal Holdings, Inc. (PYPL:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 73.9x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about the PayPal and Venmo wallets, domestic revenue growth, and weakness in the travel and event verticalsSpecifically, management may be overstating the functionality of their PayPal and Venmo wallets, their focus on capital allocation discipline, and the diversification of their product portfolio. In addition, they may lack confidence in their ability to reimagine the next generation of the financial system, build on strong business momentum, and improve value-added service revenue. Furthermore, they may be concerned about declines in travel and events verticals and their impact on U.S. revenue growth and Braintree. Management may also lack confidence in their ability to continue to deliver operating efficiencies, maintain record earnings and free cash flow, and mitigate revenue growth headwinds from eBay's managed payments transition
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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