PYPL — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($45.63)
DCF	$425.16	+831.8%
Graham Number	$51.77	+13.5%
Reverse DCF	—	implied g: 0.4%
DDM	$11.54	-74.7%
EV/EBITDA	$45.63	-0.0%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $3.27B

Near-term growth (yrs 1–5)(%)Rev: 3.7% / EPS: 39.4%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 9.40%

Computed WACC: 9.40%

Cost of equity (Re)12.10%(Rf 4.30% + β 1.42 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)77.64%

Debt weight (D/V)22.36%

Results

Intrinsic Value / share$394.12

Current Price$45.63

Upside / Downside+763.7%

Net Debt (used)$1.87B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	31.4%	35.4%	39.4%	43.4%	47.4%
7.0%	$499.11	$578.34	$667.39	$767.14	$878.54
8.0%	$391.98	$453.92	$523.51	$601.44	$688.45
9.0%	$318.73	$368.86	$425.16	$488.19	$558.54
10.0%	$265.75	$307.35	$354.04	$406.31	$464.62
11.0%	$225.83	$261.00	$300.47	$344.63	$393.89

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $5.41

Book Value / share($)Yahoo: $22.02

Results

Graham Number$51.77

Current Price$45.63

Margin of Safety+13.5%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 9.40%

Terminal growth rate(%)

Computed WACC: 9.40%

Cost of equity (Re)12.10%(Rf 4.30% + β 1.42 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)77.64%

Debt weight (D/V)22.36%

Results

Current Price$45.63

Implied Near-term FCF Growth1.4%

Historical Revenue Growth3.7%

Historical Earnings Growth39.4%

Base FCF (TTM)$3.27B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.56

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$11.54

Current Price$45.63

Upside / Downside-74.7%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $6.65B

Target EV/EBITDA multipleCurrent: 6.6×

Net Debt($B)Default: $1.87B

Results

Implied Equity Value / share$45.63

Current Price$45.63

Upside / Downside-0.0%

Implied EV$43.88B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$1.87B	$1.87B	$1.87B	$1.87B	$1.87B
2.6x	$16.74	$16.74	$16.74	$16.74	$16.74
4.6x	$31.19	$31.19	$31.19	$31.19	$31.19
6.6x	$45.63	$45.63	$45.63	$45.63	$45.63
8.6x	$60.07	$60.07	$60.07	$60.07	$60.07
10.6x	$74.52	$74.52	$74.52	$74.52	$74.52

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