PayPal Holdings Inc (PYPL) is undervalued and Synchrony Financial (SYF) is undervalued.
Against our estimates of intrinsic value, PYPL trades at the wider discount: a margin of safety of +51%, against +34% for SYF.
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
Book value at 2.18x, the multiple a 20.8% return on equity justifies, blended with earnings, values the shares at $109.41; the price of $72.67 is 34% below that value.
Leak Score 80/100 on 7 of 12 signals
| Metric | PYPL | SYF |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $52.89 | $72.67 |
| Intrinsic value | $108.56 | $109.41 |
| Margin of safety | +51% | +34% |
| Leak Score | 79/100 (10/12) | 80/100 (7/12) |
| Market cap | $45.2B | $23.6B |
| Revenue growth, 5 years | 9.2% | 8.3% |
| Operating margin | 18.9% | 28.5% |
| Net margin | 14.3% | 18.1% |
| Return on equity | 24.5% | 20.8% |
| Debt to equity | 0.72 | 0.97 |
| P/E | 10.0x | 7.5x |
| Forward P/E | 9.1x | 7.0x |
| P/B | 2.3x | 1.6x |
| Dividend yield | 0.6% | 1.8% |