AFRM vs PYPL: Affirm and PayPal compared
The short version
From the latest prices and each company's SEC filings. Who's ahead on each measure, not which to buy.
- PayPal is the larger company, worth $47.5B, about 1.7 times Affirm.
- Affirm grew revenue faster over the last year (+26.4% vs +7.2%).
- Affirm keeps more of each dollar of revenue as operating profit (28.9% vs 17.9%).
- On earnings, PayPal is the cheaper stock (10.1x vs 76.0x).
- Affirm's price assumes faster free cash flow growth: about 9% a year, against -6% for PayPal (reverse DCF).
Side by side
The stronger figure is shaded where higher (or, for valuation multiples, lower) reads as better. How the implied growth works.
| Measure | AFRM | PYPL |
|---|---|---|
| Market cap | $28.0B | $47.5B |
| Share price | $80.70 | $55.53 |
| Revenue (last fiscal year) | $1.4B | $33.2B |
| Free cash flow (last fiscal year) | $993M | $5.6B |
| Revenue growth, last year | +26.4% | +7.2% |
| Revenue growth per year, last 5 fiscal years | +26.8% | +6.9% |
| Operating margin | 28.9% | 17.9% |
| Net margin | 133.7% | 15.0% |
| Return on equity | 35.2% | 25.3% |
| P/E (trailing) | 76.0x | 10.1x |
| Price / free cash flow | 46.5x | 8.53x |
| EV / EBITDA | 27.2x | 5.17x |
| FCF growth the price implies | 9.5% | -6.3% |
| Dividend yield | — | 0.77% |
| Debt / equity | 1.88x | 3.02x |
| Fundamental grade | B | C |
| Superinvestors holding it | 3 | 0 |
| Insider purchases, last 12 months | 0 | 10 |
Results from SEC filings
Revenue and free cash flow by fiscal year, from each company's 10-K filings.
Affirm
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2022 | $559M | -$248M | -154.9% |
| 2023 | $627M | -$109M | -191.5% |
| 2024 | $826M | $291M | -74.6% |
| 2025 | $1.1B | $602M | -7.8% |
| 2026 | $1.4B | $993M | 28.9% |
PayPal
| Year | Revenue | Free cash flow | Op. margin |
|---|---|---|---|
| 2021 | $25.4B | $4.9B | 16.8% |
| 2022 | $27.5B | $5.1B | 13.9% |
| 2023 | $29.8B | $4.2B | 16.9% |
| 2024 | $31.8B | $6.8B | 16.7% |
| 2025 | $33.2B | $5.6B | 18.3% |
Where the revenue comes from
Affirm · by products, 2026
Merchant network revenue$1.1B80%
Card network revenue$294M20%
PayPal · by products, 2025
Transaction revenues$29.8B90%
Revenues from other value added services$3.4B10%
Compare them in fullFifteen years of statements, quarterly results, DCF and IRR models, and any number of peers side by side.
Open AFRM in InvestinglyQuestions
Which is bigger, Affirm or PayPal?
PayPal (PYPL), at $47.5B against $28.0B.
Is AFRM or PYPL cheaper?
By trailing P/E, PayPal (10.1x) is cheaper than Affirm (76.0x). A lower multiple can also mean the market expects less growth.
Which grows faster, AFRM or PYPL?
Affirm: revenue grew +26.4% over the last year, against +7.2%.
Prices and ratios as of the last daily update; statements from SEC filings. Information only, not investment advice.