PayPal: Why It Can Still Perform Bad Against Peers (NASDAQ:PYPL)

Thesis

In light of the complex dynamics shaping PayPal Holdings, Inc. (NASDAQ:PYPL) financial landscape, a cautiously optimistic outlook emerges, underscoring the importance of a prudent investment approach. With a conservative target of $56.60 and a “hold” rating, the company’s immediate future is viewed through a measured

TABLE OF ASSUMPTIONS
(Current data)
Assumptions Part 1
Equity Value 19,740.00
Debt Value 10,640.00
Cost of Debt 2.86%
Tax Rate 25.58%
10y Treasury 4.80%
Beta 1.34
Market Return 10.50%
Cost of Equity 12.44%
Assumption Part 3
Net Income 3,765.00
Interest 304.00
Tax 963.00
D&A 422.00
Ebitda 5,454.00
D&A Margin 1.45%
Interest Expense Margin 1.04%
Revenue 29,128.0

Revenue Net Income Taxes Operating Income Plus D&A Plus Interest
2023 $29,670.0 5,367.00 1,372.75 $6,739.8 $7,169.61 $7,479.26
2024 $32,390.0 6,069.60 1,552.46 $7,622.1 $8,091.32 $8,429.37
2025 $35,101.0 7,058.94 1,805.51 $8,864.5 $9,373.00 $9,739.33
2026 $38,039.0 8,209.55 2,099.81 $10,309.4 $10,860.47 $11,257.47
2027 $41,222.9 9,547.71 2,442.08 $11,989.8 $12,587.02 $13,017.25
2028 $44,673.2 11,103.99 2,840.14 $13,944.1 $14,591.35 $15,057.59
^Final EBITA^

Revenue Operating Income Plus D&A Plus Interest
2023 $29,670.0 $4,705.7 $5,135.51 $5,445.17
2024 $32,390.0 $5,137.1 $5,606.31 $5,944.36
2025 $35,101.0 $5,567.0 $6,075.56 $6,441.90
2026 $38,039.0 $6,033.0 $6,584.09 $6,981.09
2027 $41,222.9 $6,537.9 $7,135.17 $7,565.40
2028 $44,673.2 $7,085.2 $7,732.39 $8,198.63
^Final EBITA^

Revenue Operating Income Plus D&A Plus Interest
2023 $29,670.0 $4,705.7 $5,135.51 $5,445.17
2024 $31,892.3 $5,058.1 $5,520.16 $5,853.01
2025 $34,281.0 $5,437.0 $5,933.62 $6,291.41
2026 $36,848.7 $5,844.2 $6,378.05 $6,762.63
2027 $39,608.6 $6,281.9 $6,855.77 $7,269.15
2028 $42,575.3 $6,752.4 $7,369.27 $7,813.61
^Final EBITA^

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