PayPal: Still Deeply Undervalued, Deal Or No Deal

PayPal remains a Strong Buy, with substantial re-rating potential driven by robust cash flow and undervaluation versus intrinsic value. Q2 results were strong: TPV was up ~10% to $486.45B, FCF was up 157% YoY, and guidance was raised for non-GAAP EPS and transaction margin dollars. PYPL's balance sheet is solid, supporting $6B in 2026 buybacks and potential transformative M&A alongside its strong FCF, even as macro headwinds and competition persist. Even under conservative DCF assumptions, intrinsic value is estimated well above current levels, with risks seemingly more than priced in.

The last time I covered PayPal ( PYPL ), I argued why “The Potential Stripe-Advent Offer Still Greatly Undervalues The Company,” highlighting how the company’s fair value should easily be much higher than the reported offer, and although I see it as This article was written by IWA Research 3.32K Followers Follow I've been researching companies in-depth for over a decade, from commodities like oil, natural gas, gold and copper to tech like Google or Nokia and many emerging market stocks, which I believe could help me provide useful content for readers. After writing my own blog for about 3 years, I decided to switch to a value investing-focused YouTube channel, where I researched hundreds of different companies so far. I would say my favorite type of company to cover are metals and mining stocks, but I am comfortable with several other industries, such as consumer discretionary/staples, REITs and utilities.