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PayPal Holdings Inc
F:2PP

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PayPal Holdings Inc
F:2PP
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Price: 35.45 EUR 1.61% Market Closed
Market Cap: €36.2B

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Feb 22, 2026.

Estimated DCF Value of one 2PP stock is 77.27 EUR. Compared to the current market price of 35.45 EUR, the stock is Undervalued by 54%.

2PP DCF Value
Base Case
77.27 EUR
Undervaluation 54%
DCF Value
Price
Worst Case
Base Case
Best Case
77.27
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 77.27 EUR

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 25.9B USD. The present value of the terminal value is 62.3B USD. The total present value equals 88.2B USD.
Forecast Period
Years
Discount Rate
%
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Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 88.2B USD
+ Cash & Equivalents 8B USD
+ Investments 6.7B USD
Firm Value 103B USD
- Debt 10B USD
Equity Value 93B USD
/ Shares Outstanding 1B
Value per Share 90.94 USD
USD / EUR Exchange Rate 0.8497
2PP DCF Value 77.27 EUR
Undervalued by 54%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
34.8B 41.9B
Operating Income
6.8B 8.3B
FCFF
6B 6.8B

What is the DCF value of one 2PP stock?

Estimated DCF Value of one 2PP stock is 77.27 EUR. Compared to the current market price of 35.45 EUR, the stock is Undervalued by 54%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, PayPal Holdings Inc's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 88.2B USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 77.27 EUR per share.

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