PayPay PAYP
JapanTechnology · Software - InfrastructureUSD
24.21 USD (+57.7%)
13 analysts
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PayPay Corporation is a Japanese technology company that operates a leading digital payments and financial services platform, generating revenue from transaction fees and value-added services.
Key points
from its scores- ✓Strong growth8.7
- ✕Little or no dividend1.5
- ✕Poor share-price trend2.6
- ✕Fragile balance sheet3.0
AI analysis
bottom line, main risk, context and newsStrong growth and high profitability are offset by a highly leveraged balance sheet and negative momentum. Wait for an improvement in debt reduction or a more favorable entry point.
PayPay shows 27% revenue growth and a 37.27% ROE, but its high debt (Net Debt/EBITDA of 6.81) and falling momentum (-12.72%) create a high-risk profile. The valuation (P/E 12.90) looks attractive, although the forward P/E of 20.33 suggests the market already anticipates a slowdown.
Extreme financial leverage (Net Debt/EBITDA of 6.81) is the biggest risk, as any rise in interest rates or operational deterioration could compromise the company's ability to refinance its debt.
Context and risks
Company domiciled in Japan, a country with moderate governance risk. The digital payments business is subject to local regulatory oversight, but no material litigation or open investigations have been identified.
Is PayPay stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 23% below the Technology median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 12.9 | 31.3 | −59% |
| EV / EBITDA | 23.0 | 20.4 | +13% |
| Price / book | 4.2 | 6.3 | −34% |
| Price / sales | 4.1 | 5.3 | −23% |
Sector: median of the 283 Technology companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.0 out of 10 (median for Technology: 5.3).
Average analyst target: 24.21 USD, +57.7% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.0 (sector 6.9), Growth 8.7 (sector 7.5).
Classic formulas with standard assumptions (0.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Technology medianValuation
- P/E
- 12.9
- Forward P/E
- 20.3
- EV / EBITDA
- 23.0
- Price / book
- 4.2
- Price / sales
- 4.1
- PEG
- 1.63
- Market cap
- 10.4B USD
- Enterprise value
- 2.33T JPY
Profitability
- ROE
- 37.3%
- ROA
- 1.2%
- ROIC (approx.)
- 9.5%
- Gross margin
- 53.9%
- Operating margin
- 27.4%
- Net margin
- 30.6%
- Free cash flow
- 47.1B JPY
- FCF yield
- 2.9%
- Cash conversion
- 46%
Solvency
- Total debt
- 766.0B JPY
- Net debt
- 691.1B JPY
- Cash
- 74.9B JPY
- EBITDA
- 101.4B JPY
- Net debt / EBITDA
- 6.81
- Debt / equity
- 170.25
- Current ratio
- 1.00
- Quick ratio
- 0.81
Growth
- Revenue growth
- +27.0%
- Earnings growth
- +62.2%
- EPS (TTM)
- 1.19 USD
- EPS (forward)
- 0.75 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Analyst consensus
- none (13)
- Target price
- 24.21 USD
- 52-week range
- 12.07 – 24.89
Recent news
All PAYP news →Compare it with its sector
All 283 in Technology →Frequently asked questions about PayPay
Is PayPay stock cheap or expensive?
On P/E and EV / EBITDA, it trades 23% below the Technology median on average. Valuation score: 6.0 out of 10 (median for Technology: 5.3). Average analyst target: 24.21 USD, +57.7% versus the price. This is not investment advice.
What score does PayPay get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,359 of 2,130 (better than 35% of the companies analysed). Its strongest category is Growth (8.7) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is PayPay's P/E ratio?
Its P/E is 12.9: the share price equals 12.9 times earnings per share over the last 12 months. The Technology median is 31.3. Based on the earnings analysts expect, the forward P/E is 20.3.
How much is PayPay worth on the stock market?
Its market capitalisation is 10.4B USD and its enterprise value, debt included, is 2.33T USD.
How much debt does PayPay have?
Its net debt (debt minus cash) is 691.1B JPY. That is 6.81 times its EBITDA; the Technology median is 0.20.
Does PayPay pay a dividend?
It pays no dividend, or almost none.
How has PayPay stock performed over the last year?
It has fallen 27.4% over the last year, excluding dividends. Over the last 52 weeks it has traded between 12.07 and 24.89 USD. Past performance does not guarantee future results.
What do analysts think of PayPay?
13 analysts cover it; their average recommendation is “none” and their average target is 24.21 USD (+57.7% versus the price). It is an estimate, not market data.