Block Valuation
Is SQ * undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
0/6Valuation 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 SQ * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: SQ * (MX$1910) is trading above our estimate of fair value (MX$743.53)
Significantly Below Fair Value: SQ * is trading above our estimate of fair value.
Key Valuation Metric
Which metric is best to use when looking at relative valuation for SQ *?
Key metric: As SQ * is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.
| What is SQ *'s PE Ratio? | |
|---|---|
| PE Ratio | 54.3x |
| Earnings | US$1.05b |
| Market Cap | US$57.18b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.3x |
| Enterprise Value/EBITDA | 43.7x |
| PEG Ratio | 2x |
Price to Earnings Ratio vs Peers
How does SQ *'s PE Ratio compare to its peers?
| Company | Forward PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 45x | ||
PYPL PayPal Holdings | 19.6x | 6.1% | US$87.0b |
ADYEN Adyen | 49.2x | 19.8% | €40.6b |
FIS Fidelity National Information Services | 85.2x | 24.9% | US$46.3b |
CPAY Corpay | 26.1x | 15.5% | US$26.5b |
SQ * Block | 54.3x | 27.6% | Mex$57.2b |
Price-To-Earnings vs Peers: SQ * is expensive based on its Price-To-Earnings Ratio (54.3x) compared to the peer average (45x).
Price to Earnings Ratio vs Industry
How does SQ *'s PE Ratio compare vs other companies in the South American Diversified Financial Industry?
| 2 Companies | Price / Earnings | Estimated Growth | Market Cap |
|---|---|---|---|
| 2 Companies | Estimated Growth | Market Cap | |
|---|---|---|---|
Price-To-Earnings vs Industry: SQ * is expensive based on its Price-To-Earnings Ratio (54.3x) compared to the South American Diversified Financial industry average (8.5x).
Price to Earnings Ratio vs Fair Ratio
What is SQ *'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.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 54.3x |
| Fair PE Ratio | 19.6x |
Price-To-Earnings vs Fair Ratio: SQ * is expensive based on its Price-To-Earnings Ratio (54.3x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
| Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
|---|---|---|---|---|---|---|---|
| Current | Mex$1,910.00 | Mex$1,841.03 -3.6% | 15.5% | Mex$2,457.68 | Mex$819.23 | n/a | 42 |
| Nov ’25 | Mex$1,458.91 | Mex$1,734.47 +18.9% | 15.2% | Mex$2,002.97 | Mex$801.19 | n/a | 41 |
| Oct ’25 | Mex$1,317.00 | Mex$1,739.64 +32.1% | 14.5% | Mex$1,989.05 | Mex$795.62 | n/a | 40 |
| Sep ’25 | Mex$1,265.01 | Mex$1,740.43 +37.6% | 14.1% | Mex$1,970.49 | Mex$788.20 | n/a | 38 |
| Aug ’25 | Mex$1,124.00 | Mex$1,697.35 +51.0% | 13.9% | Mex$1,989.84 | Mex$750.88 | n/a | 39 |
| Jul ’25 | Mex$1,164.15 | Mex$1,665.75 +43.1% | 13.5% | Mex$1,946.72 | Mex$734.61 | n/a | 39 |
| Jun ’25 | Mex$1,071.70 | Mex$1,546.99 +44.3% | 13.1% | Mex$1,798.36 | Mex$678.63 | n/a | 40 |
| May ’25 | Mex$1,250.00 | Mex$1,558.25 +24.7% | 13.5% | Mex$1,884.86 | Mex$685.40 | n/a | 43 |
| Apr ’25 | Mex$1,357.00 | Mex$1,496.87 +10.3% | 13.5% | Mex$1,829.47 | Mex$665.26 | n/a | 42 |
| Mar ’25 | Mex$1,359.00 | Mex$1,526.30 +12.3% | 13.2% | Mex$1,872.05 | Mex$680.74 | n/a | 44 |
| Feb ’25 | Mex$1,135.00 | Mex$1,386.22 +22.1% | 17.4% | Mex$1,715.87 | Mex$686.35 | n/a | 42 |
| Jan ’25 | Mex$1,313.90 | Mex$1,298.75 -1.2% | 19.0% | Mex$1,698.86 | Mex$679.54 | n/a | 41 |
| Dec ’24 | Mex$1,119.36 | Mex$1,241.53 +10.9% | 19.5% | Mex$1,719.70 | Mex$687.88 | n/a | 43 |
| Nov ’24 | Mex$731.00 | Mex$1,324.79 +81.2% | 22.4% | Mex$1,985.89 | Mex$631.87 | Mex$1,458.91 | 43 |
| Oct ’24 | Mex$772.07 | Mex$1,414.77 +83.2% | 17.3% | Mex$1,917.41 | Mex$610.09 | Mex$1,317.00 | 39 |
| Sep ’24 | Mex$996.54 | Mex$1,431.69 +43.7% | 16.1% | Mex$1,861.43 | Mex$591.94 | Mex$1,265.01 | 39 |
| Aug ’24 | Mex$1,323.02 | Mex$1,429.48 +8.0% | 20.2% | Mex$2,452.17 | Mex$583.52 | Mex$1,124.00 | 40 |
| Jul ’24 | Mex$1,143.03 | Mex$1,447.97 +26.7% | 21.1% | Mex$2,524.93 | Mex$600.83 | Mex$1,164.15 | 39 |
| Jun ’24 | Mex$1,067.75 | Mex$1,538.38 +44.1% | 20.8% | Mex$2,622.67 | Mex$624.09 | Mex$1,071.70 | 39 |
| May ’24 | Mex$1,100.00 | Mex$1,668.22 +51.7% | 14.9% | Mex$2,689.29 | Mex$1,255.00 | Mex$1,250.00 | 38 |
| Apr ’24 | Mex$1,248.50 | Mex$1,695.69 +35.8% | 14.2% | Mex$2,703.36 | Mex$1,261.57 | Mex$1,357.00 | 39 |
| Mar ’24 | Mex$1,390.00 | Mex$1,735.34 +24.8% | 15.2% | Mex$2,744.76 | Mex$1,280.89 | Mex$1,359.00 | 40 |
| Feb ’24 | Mex$1,510.00 | Mex$1,674.34 +10.9% | 20.1% | Mex$2,817.63 | Mex$957.99 | Mex$1,135.00 | 40 |
| Jan ’24 | Mex$1,200.00 | Mex$1,796.10 +49.7% | 28.7% | Mex$4,125.41 | Mex$1,001.88 | Mex$1,313.90 | 42 |
| Dec ’23 | Mex$1,325.00 | Mex$1,805.74 +36.3% | 29.8% | Mex$4,082.82 | Mex$991.54 | Mex$1,119.36 | 41 |
| Nov ’23 | Mex$1,171.00 | Mex$2,036.23 +73.9% | 32.1% | Mex$4,157.24 | Mex$970.02 | Mex$731.00 | 41 |
Analyst Forecast: Target price is lower than the current share price.
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