PayPal Holdings Inc (PYPL) is undervalued and Visa Inc (V) is overvalued.
Against our estimates of intrinsic value, PYPL trades at the wider discount: a margin of safety of +51%, against -45% for V.
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 9.0% (average of 3 methods) values the shares at $249.15; the price of $362.04 is 45% above that value, and 76% of that value comes from beyond year five.
Leak Score 59/100 on 9 of 12 signals
| Metric | PYPL | V |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $52.89 | $362.04 |
| Intrinsic value | $108.56 | $249.15 |
| Margin of safety | +51% | -45% |
| Leak Score | 79/100 (10/12) | 59/100 (9/12) |
| Market cap | $45.2B | $675.9B |
| Revenue growth, 5 years | 9.2% | 12.9% |
| Operating margin | 18.9% | 67.0% |
| Net margin | 14.3% | 50.4% |
| Return on equity | 24.5% | 60.7% |
| Debt to equity | 0.72 | 0.68 |
| P/E | 10.0x | 31.1x |
| Forward P/E | 9.1x | 24.1x |
| P/B | 2.3x | 19.5x |
| Dividend yield | 0.6% | 0.8% |