PayPal Trades at Less Than 8X Earnings. Is This a Bargain or a Value Trap?

At just 7.6 times earnings, PayPal (NASDAQ: PYPL) is essentially priced like a mature utility stock. This may seem odd for a company that is generating $6 billion or more in annual free cash flow, has a loyal customer base of nearly 440 million active accounts, and is buying back stock hand over fist.To be fair, although PayPal is a very cheap stock by most metrics, there's also significant uncertainty about the company's future. In this article, we'll take a look at some of the reasons to buy PayPal, as well as some reasons investors may want to take a cautious approach.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool