Offshore
Photo
โ Dimitry Nakhla | Babylon Capitalยฎ
RT @DimitryNakhla: PayPal $PYPL is up +5.44% in the last five days & up +19.07% YTD โ€ฆ is $PYPL still undervalued? ๐Ÿ‘‡๐Ÿฝ

Letโ€™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 letโ€™s assume $BKNG ends 2026 with $5.40 in EPS & see its CAGR potential assuming different multiples

20x P/E: $108.00๐Ÿ’ต โ€ฆ ~18.6% CAGR

19x P/E: $102.60๐Ÿ’ต โ€ฆ ~16.0% CAGR

18x P/E: $97.20๐Ÿ’ต โ€ฆ ~13.3% CAGR

17x P/E: $91.80๐Ÿ’ต โ€ฆ ~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 $74๐Ÿ’ต appears to still be a decent consideration for investment

#stocks #investing
___

๐ƒ๐ˆ๐’๐‚๐‹๐Ž๐’๐”๐‘๐„โ€ผ๏ธ: ๐“๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐Ž๐“ ๐ˆ๐ง๐ฏ๐ž๐ฌ๐ญ๐ฆ๐ž๐ง๐ญ ๐€๐๐ฏ๐ข๐œ๐ž. ๐๐š๐›๐ฒ๐ฅ๐จ๐ง ๐‚๐š๐ฉ๐ข๐ญ๐š๐ฅยฎ ๐š๐ง๐ ๐ข๐ญ๐ฌ ๐ซ๐ž๐ฉ๐ซ๐ž๐ฌ๐ž๐ง๐ญ๐š๐ญ๐ข๐ฏ๐ž๐ฌ ๐ฆ๐š๐ฒ ๐ก๐š๐ฏ๐ž ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ž ๐ฌ๐ž๐œ๐ฎ๐ซ๐ข๐ญ๐ข๐ž๐ฌ ๐๐ข๐ฌ๐œ๐ฎ๐ฌ๐ฌ๐ž๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐ž๐ž๐ญ.

๐“๐ก๐ž ๐ข๐ง๐Ÿ๐จ๐ซ๐ฆ๐š๐ญ๐ข๐จ๐ง ๐œ๐จ๐ง๐ญ๐š๐ข๐ง๐ž๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐ž๐ž๐ญ ๐ข๐ฌ ๐ข๐ง๐ญ๐ž๐ง๐๐ž๐ ๐Ÿ๐จ๐ซ ๐ข๐ง๐Ÿ๐จ๐ซ๐ฆ๐š๐ญ๐ข๐จ๐ง๐š๐ฅ ๐ฉ๐ฎ๐ซ๐ฉ๐จ๐ฌ๐ž๐ฌ ๐จ๐ง๐ฅ๐ฒ ๐š๐ง๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐›๐ž ๐œ๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐ž๐ ๐š๐ฌ ๐ข๐ง๐ฏ๐ž๐ฌ๐ญ๐ฆ๐ž๐ง๐ญ ๐š๐๐ฏ๐ข๐œ๐ž ๐ญ๐จ ๐ฆ๐ž๐ž๐ญ ๐ญ๐ก๐ž ๐ฌ๐ฉ๐ž๐œ๐ข๐Ÿ๐ข๐œ ๐ง๐ž๐ž๐๐ฌ ๐จ๐Ÿ ๐š๐ง๐ฒ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐š๐ฅ ๐จ๐ซ ๐ฌ๐ข๐ญ๐ฎ๐š๐ญ๐ข๐จ๐ง. ๐๐š๐ฌ๐ญ ๐ฉ๐ž๐ซ๐Ÿ๐จ๐ซ๐ฆ๐š๐ง๐œ๐ž ๐ข๐ฌ ๐ง๐จ ๐ ๐ฎ๐š๐ซ๐š๐ง๐ญ๐ž๐ž ๐จ๐Ÿ ๐Ÿ๐ฎ๐ญ๐ฎ๐ซ๐ž ๐ซ๐ž๐ฌ๐ฎ๐ฅ๐ญ๐ฌ.

๐ˆ๐ง๐Ÿ๐จ๐ซ๐ฆ๐š๐ญ๐ข๐จ๐ง ๐œ๐จ๐ง๐ญ๐š๐ข๐ง๐ž๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐ž๐ž๐ญ ๐ก๐š๐ฌ ๐›๐ž๐ž๐ง ๐จ๐›๐ญ๐š๐ข๐ง๐ž๐ ๐Ÿ๐ซ๐จ๐ฆ ๐ฌ๐จ๐ฎ๐ซ๐œ๐ž๐ฌ ๐›๐ž๐ฅ๐ข๐ž๐ฏ๐ž๐ ๐ญ๐จ ๐›๐ž ๐ซ๐ž๐ฅ๐ข๐š๐›๐ฅ๐ž, ๐›๐ฎ๐ญ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ ๐ฎ๐š๐ซ๐š๐ง๐ญ๐ž๐ž๐ ๐š๐ฌ ๐ญ๐จ ๐œ๐จ๐ฆ๐ฉ๐ฅ๐ž๐ญ๐ž๐ง๐ž๐ฌ๐ฌ ๐จ๐ซ ๐š๐œ๐œ๐ฎ๐ซ๐š๐œ๐ฒ.
tweet
Offshore
Video
Aswath Damodaran (Youtube)
Fed up with Fed Talk: Central Banking Fairy Tales and Facts!
In the aftermath of the Fed's decision to lower the Fed Funds rate by half a percent on September 16, 2024, I looked at widely held myths about the Fed (and central banks, in general) - that they set interest rates (they don't), that they are market leaders (they are followers), that they send signals to investors and businesses (they do, but they are murky) and that they are stock market whisperers (not true). I use the data on Fed Funds rates, interest rates and stock prices to make my case, but the bottom line is that the Fed's power comes from the perception that it has power, rather than its capacity to move markets.
Slides: https://pages.stern.nyu.edu/~adamodar/pdfiles/blog/FedDelusions.pdf
Blog Post: https://aswathdamodaran.blogspot.com/2024/09/fed-up-with-fed-talk-central-banks.html
Data on Fed Funds rates, interest rates and stock prices: https://pages.stern.nyu.edu/~adamodar/pc/blog/FedIntRates.xlsx
Offshore
Photo
โ Stock Analysis Compilation
River Oaks Capital on Boston Omaha $BOMN US

Boston Omahaโ€™s deep asset portfolio and significant free cash flow generation offer investors high downside protection with attractive growth potential

(Extract from their Q2 letter, link in SAC#56) https://t.co/qQtis6CjFb
tweet
โ Quiver Quantitative
Donald Trump's net worth has fallen $550M this week, according to our estimates.

Trump Media stock has fallen 26% in the last 5 days.

You can track politicians' portfolios live on Quiver.
tweet
Offshore
Photo
โ Hidden Value Gems
I have heard people mention that FTSE performed as well as NASDAQ recently, but I could never find that strong "FTSE" or that weak "NASDAQ". Not sure what they really refer to...๐Ÿคท๐Ÿฝโ€โ™‚๏ธ

The latest comment is from @MerrynSW podcast with the Fidelity PM, Alex Wright. https://t.co/aeGVAKDh1l
tweet
Offshore
Photo
โ Stock Analysis Compilation
Arauca Capital on Shelly Group $SLYG BU

Shellyโ€™s strategic acquisition of LOQED and its entry into the smart lock market provide an exciting new growth vertical at minimal cost, offering significant upside potential

(Extract from their Q2 letter, link in SAC#56) https://t.co/rm3ySU78Qv
tweet
Offshore
Photo
โ Librarian Capital
Tobacco: US states that have e-cig directories & states that have legalised cannabis

6 legalised for medical use (UT, OK, LA, AL, FL, KY)
3 for recreation: CA, CO, VA
1 decriminalised: NE

Across 50 states, 38 legalised for medical (incl. 24 for recreational)

$BATS $BTI $MO https://t.co/BSXm4laGov
tweet
Offshore
Photo
โ Stock Analysis Compilation
Emeth Value Capital on Barratt Dev $BDEV LN

Barrattโ€™ substantial land portfolio and strong cash position provide significant downside protection, with potential for a 35% cash margin on home sales if land operations are halted

(Extract from their Q2 letter, link in SAC#56) https://t.co/gHC7vQJVJn
tweet