PayPal Stock Analysis: Is PayPal TOO CHEAP to Ignore? PYPL Stock Predictions & Target | NYSE PYPL

📌 Affiliate links (I get a commission if you register): • Try Seeking Alpha Premium for free for 7 days and get a $25 discount on the annual plan: https://www.seekingalpha.link/3LPDKC1... Join this channel to support me and get access to perks:    / @investing_with_andrew   Despite showing quite a bit of resilience as a business, PayPal (NYSE: PYPL) stock is down significantly from its peak. Among the reasons, high interest rates are probably one of the main factors that affected the company and especially the stock. The role of higher interest rates is to slow down the economy and consequently, decrease inflation. PayPal and other companies like it benefit a lot from the global activity, meaning that in today’s environment, they don’t do so well. This also means that when the rates get down, PayPal should theoretically see a recovery. Despite the unfriendly environment, PayPal has been quite resilient, still making somewhere above $4 billion, which is around the level from 2018. They actually didn’t grow that much since then, but the stock, despite all the buybacks, is down like 30%. That’s a ratio of around 14, which - as you are about to see in a bit - is probably the lowest by far in the industry. Without the funds receivable and payable to the clients, they have around $23.7 billion in current assets - $9 billion of this being in cash - which is enough to cover the $19.2 billion in total liabilities. So, they are in a very good position, but the rest of the business is not that significant, because most of it is in goodwill, but still very good financials. This allows them to do basically whatever they want with the free cash flow, without having to worry about the debt. They also had some $1 billion worth of savings recently which they plan to invest in marketing and development. You won’t see them added to the cash flow, but they should help the company grow. If anything, you can see this as basically free potential growth, because they won’t have to take that money from the final profit. They spend somewhere around $4 to $5 billion on buybacks, which is a yield of like 7%. They wasted money doing them during the high a couple of years ago, but today, they seem like a very good idea. We can see recently a lot of changes in the management, which could be a turnaround point for PayPal. They spend a ton of money on buybacks - pretty much the whole free cash flow - but that much money can do a lot for the business. Or, they could also pay it as a 7% to 8% dividend or do a bit of everything. To be fair, I would prefer it if they cut this and focus more on developing the company. Also about the buybacks, in the long-term, they theoretically add 2, 3, 5 times their value to the market cap, so I’ll take that into account when doing the valuation. PayPal's margin is still above 20% and has even increased a bit recently, which is very nice when considering the increase in revenue. 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Seek a duly licensed professional for investment advice. 0:00 PayPal Stock Review 0:33 PayPal Financial Analysis 4:00 PayPal Valuation, Target, Conclusions #stocks #investing #personalfinance #valueinvesting