The fact people think PYPL is bad - quit trading

u/Pristine_Arm8260 · Reddit — r/ValueInvesting · February 26, 2026 at 20:10 · 💬 54 comments  | View on Reddit ↗
AI Summary

Original Reddit post

Author argues PayPal is undervalued at ~6x earnings with strong cash generation and a sticky merchant/consumer product.

PYPL — LONG Author argues PayPal is cheap at a $37B enterprise value against $6B net income, roughly 6x earnings, and that paying out all net income as dividends would yield 16.6% forever. Author cites product stickiness as a merchant and consumer, including 180-day chargeback protection, 5% PayPal debit card, and high cashback. The bear case of the drop from $300 is dismissed as buyers simply having bought too high.

They currently are trading for $40B - $14B cash on hand - $11B debt - Make $6B a year

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u/Pristine_Arm8260 Reddit r/ValueInvesting
PayPal cheap at 6x earnings
Author argues PayPal is cheap at a $37B enterprise value against $6B net income, roughly 6x earnings, and that paying out all net income as dividends would yield 16.6% forever. Author cites product stickiness as a merchant and consumer, including 180-day chargeback protection, 5% PayPal debit card, and high cashback. The bear case of the drop from $300 is dismissed as buyers simply having bought too high.
PYPL HIGH
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This Reddit post, published February 26, 2026, features u/Pristine_Arm8260 discussing PYPL. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: u/Pristine_Arm8260  · Tickers: PYPL