PYPL vs TSM: Which Is the Better Buy?
Side-by-side comparison of PayPal Holdings, Inc. and Taiwan Semiconductor Manufacturing Company Limited — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-07-17.
PayPal Holdings, Inc. · Financial Services
$42.51
+45.0% upside to fair value
Grade B
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$409.74
+45.0% upside to fair value
Grade C
High Quality
QuantHub Verdict
PYPL trades at a lower forward P/E
(7.7x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
PYPL |
TSM |
| Current Price |
$42.51 |
$409.74 |
| Fair Value Estimate |
$61.64 |
$594.12 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$37.5B |
$2,125.1B |
| Forward P/E |
7.7x
|
38.8x
|
| EV / EBITDA |
5.3x
|
17.6x
|
| Price / Sales |
1.1x
|
14.5x
|
| Price / FCF |
6.8x
|
58.4x
|
| Revenue Growth YoY |
+7.2%
|
+36.0%
|
| Gross Margin |
46.1%
|
61.9%
|
| Operating Margin |
17.9%
|
53.2%
|
| Return on Equity |
25.1%
|
36.9%
|
| Dividend Yield |
0% |
0% |
| FCF Yield |
14.71%
|
1.71%
|
| Analyst Consensus |
Sell
|
Strong Buy
|
Investment Thesis
PayPal Holdings, Inc. operates as a leading global digital payments platform with a competitive moat driven by its extensive network effects, brand recognition, and scale. Despite a durable business model with 2025 revenue of $33.17 billion growing at 4.3% year-over-year and a strong return on equity of 25.1%, the company faces slowing growth and margin pressures, reflected in a 13.5% decline in …
Taiwan Semiconductor Manufacturing Company Limited (TSM) is a leading semiconductor foundry specializing in advanced chip manufacturing technologies. The company exhibits high business quality with a durable competitive moat driven by cost advantages, intangible assets, and strong brand recognition. It demonstrates robust profitability with a net margin of 47.0% and a return on equity of 36.9%. R…
Accumulation Zones
| Metric |
PYPL |
TSM |
| Zone Low |
$46.23 |
$445.59 |
| Zone High |
$52.39 |
$505.00 |
| In Buy Zone? |
Yes
|
Yes
|