Valuation Analysis of PayPal Based on Market Value and P/E Ratio

Abstract

Now that digital payments are popular, studying digital payments is very important. This article will study PayPal and mainly discuss valuation analysis. The article finally found that the overvaluation of PayPal may lead to easy financing in the future. Still, one of the biggest possible risks of high valuation is the “decline” in future cash flow. Investors may hesitate to invest in a company that is already highly valued because they may feel that the company is overvalued and the potential for future returns is limited. This may put the company in a difficult situation, with limited options for growth and expansion.