PayPal is a Turnaround Opportunity Based on Strong Fundamentals

17 days ago

Paul

"PayPal has been crushed over the last few years, yet its fundamentals remain strong with leadership in digital payments and robust free cash flow generation. In my 10-year analysis, I used growth assumptions of 4, 6, and 8% and found that despite the current trading price at 59, the discounted valuation yields a low price of 94, a high price of 215, and a middle price of 144. This significant discount to intrinsic value makes it an attractive turnaround play for long-term investors."

Paul argues that despite recent price declines, PayPal's strong market position and cash flow generation support a turnaround thesis. His analysis indicates a low valuation of 94 compared to its current price, making it an appealing long-term buying opportunity for value investors.

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