Jul. 23 at 10:08 PM
$PYPL
PayPal has reduced its share count to 882.1M shares through aggressive buybacks and still has
$12.4B authorized for future repurchases.
At today’s share count, a valuation of:
•
$70B = ~
$79/share
•
$80B = ~
$91/share
•
$90B = ~
$102/share
•
$100B = ~
$113/share
•
$110B = ~
$125/share
•
$120B = ~
$136/share
•
$130B = ~
$147/share
•
$150B = ~
$170/share
Based on PayPal’s current free cash flow, an acquisition can still make economic sense well above today’s market value. Around
$100–120B (roughly
$113–136/share) still looks financially reasonable. Beyond
$150B (
$170/share), a buyer would likely need significant synergies or much stronger future growth to justify the price.
That’s why I believe
$PYPL remains undervalued.
