If you are wondering whether PayPal Holdings is now a potential value opportunity or a value trap, looking closely at what you are paying for each dollar of its fundamentals becomes essential.
The shares last closed at US$56.56, with returns of a 5.4% decline over 7 days, an 8.3% decline over 30 days, a 2.7% decline year to date, and a 35.0% decline over 1 year, while the 5 year return sits at a 77.1% decline and the 3 year return at a 29.3% decline.
Recent headlines around PayPal have focused on its position in digital payments and how it is responding to competition and evolving consumer payment habits. These developments help frame whether the current share price reflects caution about future growth or an adjustment to a new normal…