PayPal Stock Is In A Tight Spot - 3 Minute Stock Analysis - May 2025

Published first at https://www.3minutebreakdowns.com PayPal stock analysis. Ticker symbol: $PYPL Paypal stock is up 20% this month but shares are still down over 75% from their all-time high so is it finally time to buy the stock? Let’s take a look. At the latest price, PayPal now has a market value of 72.5 billion dollars. The company has 15.8 billion dollars of cash and investments on its balance sheet and 11.4 billion of debt which means the enterprise value is 68.1 billion. Meanwhile, PayPal has generated 32 billion of revenue over the past 12 months, 4.5 billion of net income and 6 billion of free cash flow. So PayPal stock is now valued at 16 times earnings and just 11 times free cash flow. That’s extremely cheap although once you include stock based compensation the free cash flow multiple increases to more like 14. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support.