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DCF Valuation
Base-case fair value
$79.06
Intrinsic $105.41 · 25% MOS
Current price: $42.51
Base-case summary
Our base-case DCF for PayPal Holdings, Inc. (PYPL) projects 10 years of free cash flow growth at 2.4% for years 1–5 and 1.2% for years 6–10, anchored to 2.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $5.5B in trailing free cash flow, this produces an intrinsic value of $105.41 per share. A 25% safety margin gives a fair value of $79.06, suggesting the stock is currently 86% undervalued against the $42.51 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$5.5B
Cash & equivalents
$9.3B
Total debt
$10.1B
Shares outstanding
920M