Oct. 18 at 1:29 PM
$PYPL 10/18/2025 Great SA article today “PayPal’s Growth & Buybacks Are Expected To Double Shareholders Returns”
• Current P/E ratio under 15 shows how undervalued its long-term cash flow potential
• Implies a 114% upside potential from
$67
• Aggressive Share Buybacks: Funded by excess free cash flow, are "game-changer" for EPS growth. Reduces share count directly contributing to the "doubling" of returns thesis.
o It’s all about reduction in shares, denominator effect & boosting eps on non-growth rev
Not from article: PYPL does not have the growth drivers AutoZone had when it bought up 90% outstanding shares & went from
$75/share in 1996 to today at 4,030/share
o We are not a growth stock but we are a cash flow juggernaut
o AutoZone, to this day has a terrible bal sheet based on industry driven inventory sku requirements
o PYPL’s balance sheet is net cash and pristine
• Author says current ratio 15, but some say Forward P/E 13.4 to 11.
