A few short years ago, (NASDAQ: PYPL) was a red-hot stock as digital payment trends accelerated during the pandemic's height. Its growth was staggering, hopes were high, and so was the stock's valuation. Things have taken a turn in recent years, and slower growth and falling profit margins weigh on the fintech.

The company is transforming under its new CEO and is priced on the lower end of its valuation since it went public in 2015. The stock seems like a screaming bargain, but is it really? Let's explore whether it's a value trap or a good value today.

PayPal is a dominant player in the digital payments industry and has the most used digital wallet among U.S. adults, with a 71% penetration rate, according to Morning Consult. However, competition is heating up, and rivals like Block's Cash App, Apple Pay, Alphabet's Google Pay, and Shopify Payments have all emerged as real competitors in recent years.

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Source Fool.com