Block Valuation

Q: What is the Fair Price of SQ2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SQ2 (A$118.96) is trading above our estimate of [[fair value]] (A$114.59)

Is SQ2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SQ2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SQ2 (A$118.96) is trading above our estimate of fair value (A$114.59)

Significantly Below Fair Value: SQ2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SQ2?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SQ2. This is calculated by dividing SQ2's market cap by their current preferred multiple.
What is SQ2's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	n/a

SQ2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2x
Enterprise Value/EBITDA	48.4x
PEG Ratio	2.2x

Price to Earnings Ratio vs Peers

How does SQ2's PE Ratio compare to its peers?

The above table shows the PE ratio for SQ2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	18.8x
MQG Macquarie Group	23.4x	9.9%	AU$83.5b
TYR Tyro Payments	16.7x	1.5%	AU$429.5m
OFX OFX Group	10.6x	12.6%	AU$331.1m
SOL Washington H. Soul Pattinson	24.6x	-3.5%	AU$12.3b
SQ2 Block	70.3x	32.2%	AU$47.9b

Price-To-Earnings vs Peers: SQ2 is expensive based on its Price-To-Earnings Ratio (70.3x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

How does SQ2's PE Ratio compare vs other companies in the Oceanian Diversified Financial Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.0%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	7.0%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: SQ2 is expensive based on its Price-To-Earnings Ratio (70.3x) compared to the Global Diversified Financial industry average (15.2x).

Price to Earnings Ratio vs Fair Ratio

What is SQ2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SQ2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	70.3x
Fair PE Ratio	39.6x

Price-To-Earnings vs Fair Ratio: SQ2 is expensive based on its Price-To-Earnings Ratio (70.3x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.