After a great 2020/2021 where PayPal stock $PYPL gained 250%, the stock is now down 80%. PayPal had a great time during the pandemic with increasing online sales but now as sales are slowing down, the revenue growth of the company has also slowed down.
The market also expects a recession soon and online sales are going to fall further. Besides, there is rising competition for PayPal from tech companies such as Apple $AAPL and Google $GOOG and even banks such a $JPM and $BAC .
As far as financials are converted, PayPal has a very good balance sheet and they have been growing their revenues at and cash flows at a reasonable rate in recent years.
The problem is that with the slowing down in growth, the market the same earning multiples as before. Is that enough to make PYPL undervalued?