Why PayPal Could Soar To $350 Per Share

About: PayPal Holdings, Inc. (PYPL), Includes: MA, SQ, V
by: Güner Soysal
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Güner Soysal
Value, Growth At Reasonable Price, long-term horizon, activist investor

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.

1. Introduction

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