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PYPL — PayPal

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 17.97%
Profit Margins 15.0%
Return on Equity 25.12%
Return on Assets 4.74%
Free Float 0.88B
Dividend Yield 1.26%
Short Int % Utilisation 6.26%

2.2 Growth

Metric Value
Revenue Growth 7.2%
Free Cash Flow 4.08B
EBITDA 5.82 (Ratio)
Enterprise Value 38.23B
EV/Revenue 1.13
EV/EBITDA 5.82

Revenue growth of 7.2% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* -1.86%
Risk / Std Dev (Ann.)* 41.86%
1-Year Price Return* -10.16%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $61.66
52-Week Range $38.46 – $79.22
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $33.17B $31.80B
Net income Reported net income $5.23B $4.15B
Total assets Year-end reported balance $80.17B $78.72B
Shareholders’ equity Year-end reported balance $20.26B $20.42B
Net margin Net income ÷ revenue 15.78% 13.04%
Asset turnover Revenue ÷ total assets 0.4138x 0.4039x
Equity multiplier Total assets ÷ shareholders’ equity 3.9580x 3.8559x
ROE Net margin × asset turnover × equity multiplier 25.83% 20.31%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: FCFF DCF is not the primary valuation method for financial institutions or REITs. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $61.11
Market capitalisation $52.28B
Revenue $33.17B
EBIT $6.73B
Reported free cash flow $5.56B
FCF yield 10.64%
Net debt / EBITDA -0.06x

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:47:01.098469 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -41.07% -35.70%
Adjusted R² 0.20 0.22
Annualised residual volatility 35.13% 34.57%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 0.86 (4.14) 1.07 (4.57)
Size (SMB) 0.51 (1.81) 0.32 (1.08)
Value (HML) -0.80 (-3.34) -1.25 (-4.27)
Profitability (RMW) NM 0.12 (0.47)
Investment (CMA) NM 1.04 (2.43)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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