PayPal: Strongest Free Cash Flow Play In Digital Money Space


  • PayPal is sitting at a record-low valuation since separating from eBay and becoming a publicly-traded enterprise in 2015.
  • A 6% free cash flow yield is quite extraordinary from this leading online money handler, able to benefit from inflation in the general economy and consumer demand for digital transactions.
  • Lower interest rates may soon argue for a rerating of the stock by Wall Street, allowing valuation multiples to rise with the share quote.
Smart phone with logo in the pocket


PayPal Holdings, Inc. (NASDAQ:PYPL) stands out as the best and easiest way to invest in the mega-trend of paying bills and transferring money online. Steady operating returns over time, and record-high free cash flow generation on the current stock quote

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PYPL over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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