PayPal Holdings Inc (PYPL) is undervalued and SoFi Technologies Inc (SOFI) is undervalued.
Against our estimates of intrinsic value, PYPL trades at the wider discount: a margin of safety of +51%, against +40% for SOFI.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.0% (average of 3 methods) values the shares at $108.56; the price of $52.89 is 51% below that value, and 73% of that value comes from beyond year five.
Leak Score 79/100 on 10 of 12 signals
Discounting its cash flows at 14.1% (average of 3 methods) values the shares at $28.62; the price of $17.16 is 40% below that value, and 63% of that value comes from beyond year five.
Leak Score 50/100 on 9 of 12 signals
| Metric | PYPL | SOFI |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $52.89 | $17.16 |
| Intrinsic value | $108.56 | $28.62 |
| Margin of safety | +51% | +40% |
| Leak Score | 79/100 (10/12) | 50/100 (9/12) |
| Market cap | $45.2B | $22.2B |
| Revenue growth, 5 years | 9.2% | 44.7% |
| Operating margin | 18.9% | 15.3% |
| Net margin | 14.3% | 11.4% |
| Return on equity | 24.5% | 7.1% |
| Debt to equity | 0.72 | 0.31 |
| P/E | 10.0x | 36.2x |
| Forward P/E | 9.1x | 20.9x |
| P/B | 2.3x | 2.0x |
| Dividend yield | 0.6% | — |