PayPal Holdings has attracted a $60.50 per share takeover offer from Stripe and Advent, even as its stock trades well below past peaks. The shares have fallen about 84% over the past five years, and the bid values the company at roughly $53 billion. On valuation checks, PayPal scores 5 out of 6 on Simply Wall St's value screen, and its price-to-earnings ratio of 8.3 times sits at a sizable discount to the broader diversified financial industry's 15.5 times and its peer group's 23.9 times. A Simply Wall St model implies a fair P/E of 15.9 times, suggesting the market is assigning a materially lower valuation. Community views remain split, with a bull case seeing the stock as 42% undervalued and a bear case arguing it is 48% overvalued, hinging on whether PayPal can sustain its core payments profitability amid competition and regulatory pressure.
PayPal Holdings IncTakeover offer at $60.50 per share values company at ~$53B, and stock screens cheap with P/E of 8.3x vs industry 15.5x.