PayPal shares have fallen more than 80% from their mid-2021 peak of about $310, and takeover-talk reports have faded. The author still holds the stock despite trading below his average cost, arguing it offers one of the best risk-reward profiles in value investing. In the most recent quarter, revenue grew 5% and total payment volume rose 10% year over year, while free cash flow reached $1.8 billion and buybacks have been aggressive. At about 10 times forward earnings, the author argues PayPal does not need rapid growth; if income grows about 4% a year and the share count shrinks about 8% annually, EPS could still rise at a double-digit pace. The author says he would reconsider if the branded checkout business keeps losing ground.
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