PayPal Holdings, Inc. shares have lost approximately 85% of their value over the past five years [1], [2].

This decline places the company at a critical juncture as it faces intense competition in the fintech sector. The steep drop in valuation forces investors to decide if the stock is currently undervalued or if the business model is permanently impaired.

The company's stock has struggled significantly since its record high in July 2021, with prices currently sitting 86% below that peak [8]. In 2026, the downward trend continued, with the stock falling 27% year-to-date as of June 24 [7]. By May 5, the share price had fallen below $45 [4].

Financial analysts are divided on the stock's outlook. Some point to the current price-to-earnings multiple, which is less than eight times [3]. This low multiple suggests the stock is trading at a steep discount compared to historical norms and industry peers.

"PayPal trades at less than 8× earnings, making it extremely cheap," an MSN Money editorial said [3].

However, other observers worry that the low price reflects a "value trap," a stock that appears cheap but continues to decline due to fundamental business failures. The slump is attributed to a combination of weaker earnings and competitive pressures within the digital payments landscape [5].

Despite the volatility, some analysts maintain a positive outlook. A 247WallSt analyst said the consensus price target is $52.97, which would imply roughly 17% upside from the current sub-$45 price [5].

"PayPal has lost 85% of its value over the past five years," The Motley Fool editorial said [1].

The debate persists as the company attempts to stabilize its market position on the NASDAQ exchange following recent earnings releases [1], [4].

“PayPal has lost 85% of its value over the past five years.”

The divergence between PayPal's low earnings multiple and its collapsing share price highlights a crisis of confidence in legacy fintech leaders. While a sub-8x multiple typically signals a bargain, the persistent 27% year-to-date decline suggests that the market is pricing in long-term structural challenges rather than a temporary dip. The company's ability to reach the $52.97 consensus target depends on whether it can outpace newer competitors and reverse the trend of eroding earnings.