Block, Inc.

XTRA:SQ3 Stock Report

Market Cap: €41.6b

Block Valuation

Is SQ3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow 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 SQ3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

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Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: SQ3 (€67.9) is trading below our estimate of future cash flow value (€105.27)

Significantly Below Future Cash Flow Value: SQ3 is trading below future cash flow value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SQ3?

Key metric: As SQ3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SQ3. This is calculated by dividing SQ3's market cap by their current earnings.
What is SQ3's PE Ratio?
PE Ratio132.5x
EarningsUS$357.14m
Market CapUS$48.05b

Price to Earnings Ratio vs Peers

How does SQ3's PE Ratio compare to its peers?

The above table shows the PE ratio for SQ3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.4x
DB1 Deutsche Börse
23.6x7.09%€50.0b
DBK Deutsche Bank
10.2x8.13%€62.2b
DWS DWS Group GmbH KGaA
14.3x7.07%€14.6b
PYPL PayPal Holdings
9.4x-0.37%US$46.2b
SQ3 Block
132.5x46.86%€48.1b

Price-To-Earnings vs Peers: SQ3 is expensive based on its Price-To-Earnings Ratio (132.5x) compared to the peer average (14.4x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does SQ3's PE Ratio compare vs other companies in the European Diversified Financial Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SQ3 132.5xIndustry Avg. 10.2xNo. of Companies9PE0816243240+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SQ3 is expensive based on its Price-To-Earnings Ratio (132.5x) compared to the European Diversified Financial industry average (10.2x).

Price to Earnings Ratio vs Fair Ratio

What is SQ3'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.

SQ3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio132.5x
Fair PE Ratio63.7x

Price-To-Earnings vs Fair Ratio: SQ3 is expensive based on its Price-To-Earnings Ratio (132.5x) compared to the estimated Fair Price-To-Earnings Ratio (63.7x).

Analyst Price Targets

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

The above table shows the analyst SQ3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€67.90
€85.19
+25.46%
10.69%€108.31€64.99n/a42
Sep ’27€69.05
€84.52
+22.41%
10.86%€107.86€64.72n/a41
Aug ’27€70.05
€80.85
+15.42%
10.44%€99.74€56.37n/a40
Jul ’27€67.80
€80.38
+18.55%
10.87%€104.73€57.13n/a40
Jun ’27€66.35
€77.85
+17.34%
12.17%€102.49€49.89n/a41
May ’27€59.75
€74.29
+24.33%
14.16%€102.06€43.68n/a41
Apr ’27€52.12
€74.61
+43.14%
14.44%€103.10€44.13n/a40
Mar ’27€52.35
€72.14
+37.81%
16.01%€100.80€38.07n/a39
Feb ’27€51.12
€72.02
+40.88%
15.75%€100.48€37.94n/a40
Jan ’27€55.99
€71.39
+27.51%
15.44%€89.38€38.30n/a38
Dec ’26€56.93
€72.45
+27.25%
15.48%€90.55€38.81n/a38
Nov ’26€65.41
€76.52
+16.99%
13.32%€90.78€50.15n/a38
Oct ’26€62.36
€75.04
+20.34%
13.73%€89.53€49.46n/a36
Sep ’26€66.89
€73.00
+9.13%
17.92%€89.01€29.96€69.0537
Aug ’26€63.70
€65.33
+2.56%
19.62%€90.68€30.23€70.0539
Jul ’26€57.29
€59.82
+4.42%
18.84%€89.06€29.69€67.8042
Jun ’26€54.30
€59.89
+10.30%
20.30%€92.48€30.83€66.3541
May ’26€50.83
€73.67
+44.93%
20.22%€99.20€31.00€59.7543
Apr ’26€50.60
€85.22
+68.43%
17.24%€115.86€37.08€52.1242
Mar ’26€61.81
€92.60
+49.82%
16.93%€120.53€38.57€52.3542
Feb ’26€88.86
€96.20
+8.26%
17.54%€120.13€38.44€51.1240
Jan ’26€84.36
€93.14
+10.40%
18.46%€119.89€38.36€55.9941
Dec ’25€84.57
€87.55
+3.52%
17.26%€113.40€37.80€56.9341
Nov ’25€66.81
€80.06
+19.83%
15.20%€92.45€36.98€65.4141
Oct ’25€59.11
€79.01
+33.67%
14.53%€90.34€36.14€62.3640
Sep ’25€58.89
€79.92
+35.70%
14.10%€90.48€36.19€66.8938
€85.24
Fair Value
20.3% undervalued intrinsic discount
42
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/09/15 03:36
End of Day Share Price 2026/09/15 00:00
Earnings2026/06/30
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Block, Inc. is covered by 66 analysts. 35 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Richard KramerArete Research Services LLP
Oliver LesterArete Research Services LLP
Stephen BiggarArgus Research Company