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 2026-06-20.
PayPal Holdings, Inc. · Financial Services
$42.51
+45.0% upside to fair value
Grade B
VS
Taiwan Semiconductor Manufacturing Company Limited · Technology
$462.12
+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 |
$462.12 |
| Fair Value Estimate |
$61.64 |
$670.07 |
| Upside to Fair Value |
+45.0%
|
+45.0%
|
| Market Cap |
$37.5B |
$2,396.8B |
| Forward P/E |
7.7x
|
32.4x
|
| EV / EBITDA |
5.3x
|
20.5x
|
| Price / Sales |
1.1x
|
15.2x
|
| Price / FCF |
6.8x
|
61.4x
|
| Revenue Growth YoY |
+7.2%
|
+35.1%
|
| 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%
|
1.63%
|
| 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 (TSMC) is the world's leading semiconductor foundry, commanding over 60-70% global market share in advanced process nodes. The company benefits from a very strong and widening moat driven by unmatched EUV-intensive capacity and a conservative, shareholder-friendly capital allocation strategy. TSMC's business quality is high, with robust profitabi…
Accumulation Zones
| Metric |
PYPL |
TSM |
| Zone Low |
$46.23 |
$502.55 |
| Zone High |
$52.39 |
$569.56 |
| In Buy Zone? |
Yes
|
Yes
|