Squarespace, Inc.

NYSE:SQSP Stock Report

Market Cap: US$6.5b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Squarespace Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SQSP ($46.57) is trading below our estimate of fair value ($68.31)

Significantly Below Fair Value: SQSP is trading below fair value by more than 20%.

Key Valuation Metric

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

Key metric: As SQSP is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SQSP. This is calculated by dividing SQSP's market cap by their current revenue.
What is SQSP's PS Ratio?
PS Ratio5.9x
SalesUS$1.11b
Market CapUS$6.47b

Price to Sales Ratio vs Peers

How does SQSP's PS Ratio compare to its peers?

The above table shows the PS ratio for SQSP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average4.5x
WIX Wix.com
7.2x12.3%US$12.3b
GDS GDS Holdings
2.4x15.0%US$3.6b
TWLO Twilio
3.6x7.2%US$15.1b
DOCN DigitalOcean Holdings
4.7x12.3%US$3.5b
SQSP Squarespace
5.9x12.8%US$6.5b

Price-To-Sales vs Peers: SQSP is expensive based on its Price-To-Sales Ratio (5.9x) compared to the peer average (4.2x).

Price to Sales Ratio vs Industry

How does SQSP's PS Ratio compare vs other companies in the US IT Industry?

27 CompaniesPrice / SalesEstimated GrowthMarket Cap
KD Kyndryl Holdings
0.5x1.7%US$6.63b
DXC DXC Technology
0.3x-1.9%US$3.83b
RXT Rackspace Technology
0.2x0.7%US$527.96m
UIS Unisys
0.3x3.4%US$516.06m
SQSP 5.9xIndustry Avg. 2.0xNo. of Companies27PS02.44.87.29.612+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: SQSP is expensive based on its Price-To-Sales Ratio (5.9x) compared to the US IT industry average (2.3x).

Price to Sales Ratio vs Fair Ratio

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

SQSP PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio5.9x
Fair PS Ratio5.8x

Price-To-Sales vs Fair Ratio: SQSP is expensive based on its Price-To-Sales Ratio (5.9x) compared to the estimated Fair Price-To-Sales Ratio (5.8x).

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 SQSP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$46.10
0%
3.4%US$48.83US$44.00n/a8
Nov ’25n/a
US$46.10
0%
3.4%US$48.83US$44.00n/a8
Oct ’25US$46.41
US$46.10
-0.7%
3.4%US$48.83US$44.00n/a8
Sep ’25US$45.48
US$45.10
-0.8%
3.8%US$48.83US$44.00n/a8
Aug ’25US$44.07
US$44.54
+1.1%
7.3%US$50.00US$38.00n/a9
Jul ’25US$43.53
US$44.54
+2.3%
7.3%US$50.00US$38.00n/a9
Jun ’25US$44.00
US$44.00
0%
6.9%US$50.00US$38.00n/a8
May ’25US$34.20
US$38.17
+11.6%
11.4%US$45.00US$27.00n/a16
Apr ’25US$36.58
US$37.98
+3.8%
11.1%US$45.00US$27.00n/a16
Mar ’25US$32.36
US$36.91
+14.1%
11.7%US$43.00US$27.00n/a15
Feb ’25US$31.20
US$35.18
+12.8%
12.0%US$41.00US$26.00n/a15
Jan ’25US$33.01
US$34.85
+5.6%
12.0%US$40.00US$26.00n/a13
Dec ’24US$28.87
US$35.36
+22.5%
12.0%US$40.00US$26.00n/a14
Nov ’24US$27.41
US$35.00
+27.7%
12.3%US$40.00US$25.00n/a14
Oct ’24US$28.97
US$35.00
+20.8%
12.7%US$40.00US$25.00US$46.4113
Sep ’24US$30.15
US$34.33
+13.9%
12.9%US$40.00US$25.00US$45.4812
Aug ’24US$32.88
US$32.08
-2.4%
16.0%US$40.00US$24.00US$44.0712
Jul ’24US$31.54
US$31.50
-0.1%
14.3%US$40.00US$24.00US$43.5312
Jun ’24US$29.45
US$31.04
+5.4%
13.6%US$40.00US$22.50US$44.0012
May ’24US$31.84
US$29.43
-7.6%
17.9%US$40.00US$19.60US$34.2013
Apr ’24US$31.77
US$27.69
-12.8%
17.8%US$36.00US$19.60US$36.5811
Mar ’24US$23.18
US$23.85
+2.9%
16.1%US$32.00US$17.00US$32.3613
Feb ’24US$23.92
US$23.85
-0.3%
16.1%US$32.00US$17.00US$31.2013
Jan ’24US$22.17
US$23.77
+7.2%
16.3%US$32.00US$17.00US$33.0113
Dec ’23US$20.73
US$23.77
+14.7%
16.3%US$32.00US$17.00US$28.8713
Nov ’23US$21.54
US$24.38
+13.2%
21.7%US$40.00US$17.00US$27.4113

Analyst Forecast: Target price is lower than the current share price.

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