Great insight! I completely agree that Paypal seems to be the most cost-effective option among its major competitors, and it appears to have a strategic advantage in maintaining its take rates at a lower level than the others while remaining profitable for an extended period of time. It's interesting to note that the current EV/EBIT ratio is much lower for a mature company that is not growing. There is definitely potential for Paypal to double its EV/EBIT ratio, which could translate into a share price of around $120. However, a more realistic approach would be to consider the DCF, which suggests that the share price could be around $90. Overall, it seems that Paypal has a strong upward potential with minimal downside, making it an attractive investment opportunity.
Great insight! I completely agree that Paypal seems to be the most cost-effective option among its major competitors, and it appears to have a strategic advantage in maintaining its take rates at a lower level than the others while remaining profitable for an extended period of time. It's interesting to note that the current EV/EBIT ratio is much lower for a mature company that is not growing. There is definitely potential for Paypal to double its EV/EBIT ratio, which could translate into a share price of around $120. However, a more realistic approach would be to consider the DCF, which suggests that the share price could be around $90. Overall, it seems that Paypal has a strong upward potential with minimal downside, making it an attractive investment opportunity.