⁠Dimitry Nakhla | Babylon Capital®
PayPal $PYPL is up +5.44% in the last five days & up +19.07% YTD … is $PYPL still undervalued? 👇🏽

Let’s have a look at the earnings estimates:

2024E: $4.41 (-13.5% YoY) *FY Dec
2025E: $4.83 (+9.5% YoY)
2026E: $5.40 (+11.7% YoY)

$PYPL has a decent track record of meeting analyst estimates ~2 years out, so let’s assume $BKNG ends 2026 with $5.40 in EPS & see its CAGR potential assuming different multiples

20x P/E: $108.00💵 … ~18.6% CAGR

19x P/E: $102.60💵 … ~16.0% CAGR

18x P/E: $97.20💵 … ~13.3% CAGR

17x P/E: $91.80💵 … ~10.5% CAGR

As you can see, $PYPL appears to have attractive return potential if we assume >17x earnings, a valuation below what maybe justified by its renewed growth rate & a multiple below its historical averages

Despite its recent rally, $PYPL at $74💵 appears to still be a decent consideration for investment

#stocks #investing
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𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.

𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.

𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲.
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⁠Hidden Value Gems
RT @HiddenValueGems: Quote of the day #88 https://t.co/IgdbzVe7gx
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⁠Librarian Capital
FeverTree $FEVR in UK* - bottom shelf & on reduction

Not a good sign but has been the same for several months at least

Schweppes, main UK competitor, on shelf above

(* Islington Upper Street Sainsbury, but true also of other ones I have visited) https://t.co/u9YYJEUKYv
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⁠Librarian Capital
L'Oréal $OR Aesop store on Islington Upper Street
Photo taken Wed lunch time (1 pm); zero customers

Staff outnumbered customers every time I went past this, except one weekend, but it's possible this is intended for weekend shoppers https://t.co/hE0I1AbFmx
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⁠Investing visuals
With the Nasdaq $QQQ up 2%, it’s nearing its all-time high. Here’s an overview of the world’s largest tech ETF👇 https://t.co/zYhpQZnbON
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⁠Stock Analysis Compilation
Smithson on Choice Hotels $CHH US

Choice Hotels' robust margins, coupled with strategic share buybacks, present a solid investment with a 5% free cash flow yield

(Extract from their Q2 letter) https://t.co/bF5XC8P0Oi
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⁠Librarian Capital
"Walmart Plans Instant Bank Payments, Cutting Out Card Networks" (Bloomberg) $V $MA

"The world’s largest retailer has offered pay-by-bank through Walmart Pay since earlier this year ... (The) upgraded pay-by-bank offering will be rolled out in 2025 ... for online checkout"

Walmart customers will soon have the option to pay directly from their bank accounts with instant transfers for online purchases https://t.co/TH16uiYTsQ - Bloomberg
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⁠Librarian Capital
Rightmove $RMV: long-time holder Kayne Anderson Rudnick has sold down ~1% (from 6.52% to 5.35%)

$REA non-binding offer was rejected by RMV board
They have until 30-Sep to make another one https://t.co/s6y42T8zzR
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⁠Hidden Value Gems
Probably a buying opportunity 👉🏼 $KSPI

Just adding a word “Russia” and expecting the stock to tank…

I would be more cautious about $FRHC though, which was also subject to a short seller attack and is now +50% from its lows.

cc @CulperResearch https://t.co/fzFcG59Gpc
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⁠Librarian Capital
"Tucker Carlson Plans New Nicotine-Pouch Brand (Alp)" (WSJ) $PM

"His partner in the venture ... said Alp would comply with federal regulations but declined to say whether the brand had sought clearance from the FDA"

"Alp pouches are moist, he said"

Tucker Carlson says he decided to launch his own nicotine-pouch brand because Zyn maker Philip Morris couldn’t take a joke https://t.co/78Q14NPpSN https://t.co/78Q14NPpSN - The Wall Street Journal
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