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PayPal (PYPL) Valuation in Focus as Investor Interest Rises on Fresh Digital Payment Initiatives and Partnerships

Simply Wall St · 10/24/2025 17:21

PayPal Holdings (PYPL) is drawing fresh attention after announcing a new embedded payment solution for BigCommerce merchants. This highlights a strategic partnership that could strengthen its position in the rapidly evolving digital payments arena. This move comes just ahead of its third-quarter earnings report, providing investors more to consider as the payment landscape shifts.

See our latest analysis for PayPal Holdings.

After a tough year for fintech stocks generally, PayPal’s short-term momentum is showing signs of life. Its share price has rebounded 5.5% over the past week, even as its year-to-date share price return remains down 19%. Several fresh partnerships and product launches, such as its deepening collaboration with BigCommerce and escalating push into stablecoin-powered payments, continue drawing investor interest and could help reset the growth narrative as earnings approach. Despite ongoing margin headaches and stiff competition, the company’s total shareholder return over five years stands at a disappointing -64%. New initiatives might offer PayPal a path to recovery if they gain traction.

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With shares trading near multi-year lows but PayPal posting steady revenue and profit growth, the key question is whether the current discount signals a genuine buying opportunity or if the market has already accounted for any rebound potential.

Most Popular Narrative: 33.8% Undervalued

According to user Zwfis, PayPal's narrative fair value stands at $105.25, which is substantially higher than the recent closing price of $69.66. This sets up a debate over whether the market is underestimating growth levers and new initiatives within PayPal’s business model.

Venmo is a very popular app/tool that people are using all over. One thing that they/past management had issues with was how to monetize it. Slowly, besides transaction fees and earning interest off of customers' unused cash, they have started to begin to add a Debit and a Credit card into the mix. Along with that, and what I am most bullish on, is how they are having Venmo being able to be used in stores.

Read the complete narrative.

Curious which growth drivers were bold enough to send the fair value far above today’s price? The narrative leans heavily on aggressive revenue expansion, margin improvements, and ambitious leadership targets. Dive deeper to learn exactly which financial bets could make the next PayPal rally reality.

Result: Fair Value of $105.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slowing revenue growth or failure to deliver margin improvements could challenge the bullish outlook and keep PayPal shares under continued pressure.

Find out about the key risks to this PayPal Holdings narrative.

Build Your Own PayPal Holdings Narrative

If you want to dig into the numbers yourself or build an investment thesis with your own assumptions, you can create a personalized narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding PayPal Holdings.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.