Where Will PayPal Be in 5 Years?
PayPal (NASDAQ: PYPL) stock has steadily moved higher since it broke away from eBay in 2015. The growing popularity of e-commerce and digital payments have driven PayPal and other financial tech stocks higher in recent years.
PayPal is entering a new era as it completes its separation from longtime parent eBay. Since splitting off in 2015, it has made critical acquisitions and started lines of business that should continue to increase revenue. Given the PayPal ecosystem and the growth of the fintech industry generally, PayPal stock could trade at significantly higher levels five years from now.
Its P/E ratio of around 59.2 may seem slightly elevated compared to the S&P 500 average P/E ratio of 25.4. Still, with earnings growth expected to average 19.17% per year over the next five years, most will find it difficult to not like PayPal. Three critical factors will likely help PayPal keep growing its business.
Source Fool.com
