PYPL
9/9 ScorePayPal Holdings, Inc.
Analysis Date: February 21, 2026
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company's payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
Buffettology Criteria
All 9 of 9 criteria passed
High ROE
Return on Equity > 12%
Value: 25.9%
High ROIC
Return on Invested Capital > 9%
Value: 15.4%
Cash Machine
FCF / Assets > 5%
Value: 6.9%
Fair Valuation
Earnings Yield > 3.5%
Value: 13.5%
Share Buybacks
Share Count is Dropping
Value: -6.8%
Defensible Moat
Gross Profit Margin > 40%
Value: 45.4%
Simple Business
Not in a speculative sector (e.g., Biotech)
Value: Financial Services
Conservative Debt
Debt to Equity < 1.5
Value: 0.49x
Consistent Growth
5-Year Growth is Positive
Value: 52.3%
Analysis Summary
A company that passes all nine of our criteria is certainly worth a second look. PayPal shows a strong return on equity and capital, indicating they're using shareholder money effectively. I like to see a business that generates cash reliably and can consistently grow its top and bottom lines, all while managing its debt load prudently and returning capital to shareholders through buybacks.
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