PayPal No Longer Deserves A Premium Valuation. Here's Why.

PayPal's (NASDAQ: PYPL) share price has stumbled by more than 25% year to date, and the stock now trades at a P/E ratio of 8. However, that doesn't make it a buy right away, and it may never climb to a lofty P/E ratio now that the growth narrative is mostly dead. PayPal delivered 7% year-over-year revenue growth in the first quarter, which is well below that of emerging fintech stocks like SoFi Technologies (up 41% in Q1) and Robinhood Markets (up 15%). PayPal's revenue compound annual growth rate (CAGR) has been declining in recent years. It has a 10-year CAGR of 13.9%, but only a 7.2% CAGR over the past three years. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool