With its focus on e-commerce, online consumption and mobile payments, PayPal is one of the leading payment providers of the 21st century.
The global pandemic has exceeded e-commerce growth forecasts by 3-5 years, which also triggered a growth boost for PayPal, according to management.
PayPal has numerous growth factors which, together with a diversification and scaling of the business model, should ensure continued growth in the coming years.
While the company has a substantially lower valuation than its peers, my DCF calculation indicates an upside potential of around 75%, which corresponds to a per share price of around $350.
PayPal (PYPL) is benefiting from at least three secular trends: a) increased adoption of e-commerce, b) globally growing online consumption and c) the increasing use of digital, cashless & mobile payment