PayPal: Gotta Raise The Bid

The $60.50 buyout bid for PayPal equates to less than 9x adjusted FCF, which is inadequate given their strong cash generation. Read the full analysis here.

PayPal Holdings, Inc. (PYPL) has spent most of 2026 bouncing around based on rumors of buyouts while disappointing investors due to weak financial results. The stock has soared this week due to a credible indication of a bid submitted Summary - PayPal Holdings, Inc. received a $60.50/share buyout bid from Stripe, Advent International, and possibly Block, valuing the company at $53 billion. - The bid represents less than 9x adjusted free cash flow, which I view as inadequate given PYPL's strong cash generation and turnaround potential.

- Regulatory hurdles, especially concerning Venmo and Cash App competition, could delay or jeopardize deal closure, limiting near-term upside. - I remain ultra bullish, favoring holding for a higher bid or continued turnaround, as modest growth and buybacks could double valuation. - This idea was discussed in more depth with members of my private investing community, Out

Fox The Street. Learn More » Analyst’s Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions.

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