Peter Lynch's formula is:
PayPal Fair Value
= Earnings Growth Rate x TTM EPS
PayPal Fair Value
= 24.64 x 4.34
PayPal Fair Value
= 106.96
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | 2023-12-31 | 5Y Avg | |
| Net income | 2,459.00 | 4,202.00 | 4,169.00 | 2,419.00 | 4,246.00 | 3,499.00 |
| YoY growth | 19.54% | 70.88% | -0.79% | -41.98% | 75.53% | 24.64% |
