Barron’s recently recommended Paypal even with share up 87% this year. Here is my preliminary take on this.
- My overall conviction: wait for price to dip t0 below $50 (median PS price is $48, median PB price is $43.5)
- valuation: over priced at p/b, FCF, p/s and PL value, EV/EBITDA
- financial strength: very strong 8/10, no debt
- Profitability & growth: good, overall oper margin and profit margin is double digit, ROE% is 10.68%
- Ratios: valuation ratio too high
- insider trades: no insider buy, only sell
- possible catalysts:
- Pay with Venmo will add $0.5 to it eps
