PayPal Trades at Less Than 8X Earnings. Is This a Bargain or a Value Trap?
The fintech stock is extremely cheap, but there are some reasons for it.
PayPal Trades at Less Than 8X Earnings. Is This a Bargain or a Value Trap?
Overview
At just 7.6 times earnings, PayPal (NASDAQ: PYPL) is essentially priced like a mature utility stock. This may seem odd for a company that is generating $6 billion or more in annual free cash flow, has a loyal customer base of nearly 440 million active accounts, and is buying back stock hand over fist.
To be fair, although PayPal is a very cheap stock by most metrics, there's also significant uncertainty about the company's future. In this article, we'll take a look at some of the reasons to buy PayPal, as well as some reasons investors may want to take a cautious approach.
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.
