PYPL – Market expectations are for Uniform ROA to fade, and management may have concerns about growth, margins, M&A, and eBay payments migration

December 23, 2021

PayPal Holdings (PYPL) currently trades above corporate and historical averages relative to Uniform earnings, with a 39.4x Uniform P/E (Fwd. V/E’).

At these levels, markets are pricing in expectations for Uniform ROA to fade to 27%, accompanied by 15% Uniform asset growth.

Meanwhile, analysts expect Uniform ROA to decline to 22% levels in 2022, accompanied by 53% Uniform asset growth.

If sustained going forward, these levels would imply a stock price closer to $500, representing significant potential equity upside for the firm.

That said, analyst growth projections consider recent M&A activity, suggesting these levels are not sustainable going forward.

Moreover, the firm’s most recent earnings call suggests management may have concerns about growth, margins, M&A, and eBay payments migration.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683