PayPal (NASDAQ: PYPL), a leading player in the digital payments industry, has undergone significant financial evolution over the past decade. From strong top-line growth to fluctuations in net income, this analysis reviews the company’s key financial indicators, balance sheet, valuation multiples, and market forecasts—assessing whether the stock still represents a compelling investment opportunity.

Consistent Revenue Growth with Signs of Deceleration

PayPal’s revenue has steadily grown from $13.08 billion in 2017 to $31.79 billion in 2024—marking a cumulative increase of approximately 143%. The pandemic years, particularly 2020 and 2021, saw a surge with revenue growth exceeding 20% year-over-year. However, the pace has gradually slowed. In 2023, revenue increased by only 9.70%, and in 2024, it rose by a modest 7.10%.

Operating Profit Rebounds While Net Income Stagnates

In 2024, PayPal recorded $5.75 billion in operating income, reflecting a healthy year-over-year increase of nearly 19%. This marks a recovery from the dip seen in 2022. Despite improved operating efficiency, net income has remained flat.

Net profit dropped slightly from $4.25 billion in 2023 to $4.15 billion in 2024. This decline occurred even as operating income rose—primarily due to a steep rise in tax expenses. In 2024, PayPal paid $1.18 billion in taxes compared to a $70 million tax benefit in 2021.

Strong Balance Sheet with Mild Equity Decline

As of the end of 2024, total assets stood at $81.61 billion, a slight decrease from the previous year. Shareholders’ equity also dipped to $20.42 billion, while total debt rose modestly to $11.86 billion.

Still, the company maintains solid liquidity. Net debt for 2024 was just $1.03 billion, a major improvement from the $687 million in net cash reported in 2022. These figures underscore PayPal’s ability to sustain financial stability amid market volatility.

Attractive Valuation Following Multiple Compression

PayPal’s price-to-earnings (P/E) ratio dropped from 66.16 in 2020 to 15.67 in 2024—a clear signal of more conservative market expectations. The price-to-sales (P/S) ratio followed suit, falling from 12.97 to just 2.19, placing the stock at a valuation comparable to legacy financial institutions rather than growth-oriented tech companies.

Forward Estimates Reflect Renewed Optimism

Market analysts expect earnings per share (EPS) to climb from $4.65 in 2024 to $5.09 in 2025, and to reach $7.06 by 2028. Revenue is also forecasted to increase—from $31.80 billion to $38.88 billion over the same period.

These projections signal a renewed belief in PayPal’s business model—contingent on its ability to retain competitive edge and operational efficiency in an increasingly crowded fintech landscape.

Bottom Line – What’s Next for PayPal?

PayPal’s financials reveal a company with a solid balance sheet, resilient operating margins, and a clear strategy for long-term growth. While net income has been volatile, largely due to tax shifts and reinvestment cycles, core fundamentals remain intact.

With a historically low valuation, healthy cash flows, and EPS growth projected through 2028, PayPal could represent a strategic buy for long-term investors willing to weather short-term volatility in pursuit of structural upside.