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Block, Inc. — Intrinsic Value & Fair Price

XYZ
NYSETechnologySoftware - InfrastructureCIK 0001512673block.xyzAbout XYZ
Last close · Oct 16, 202677.85−1.98 (−2.48%)
Market cap$46.8B
Model value · DCF · Perpetuity growth · 5y
31.06
Block closed at $77.85 — overvalued by 151% vs model.
25.62the model's range41.42

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
27.09 – 583.01
Wall St. target
100.00 22% below
Above model, 1y
20 of 20 days

Price and model value

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What the marks mean
Daily close

Valuation models

price $77.85 · as of Oct 18, 2026

DCF · Perpetuity growth · 5y leads for mature & stable — positive operating income and three years of positive free cash flow. How we value a stock walks through every input. The price is 151% above the model value: the models see only the filed business, and a company priced on businesses with no revenue line yet is better taken apart, as Tesla is.

engine pkg:0.1.0

Research on XYZ

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How it is valued

Valued asMature & Stable
Low/slowing growth (~5% recent)Decelerated from ~21% 5y CAGRModerate margins (5% net margin)Highly cyclical earningsStrong FCF yield (5.2%)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
37.1×
EV / EBITDA
21.0×
FCF yield
5.1%
Dividend yield, TTM
0.00%
Beta
2.55
Cost of capital (WACC)
12.34%
Full financials

Analyst actions

third-party, quoted
10-15UBS · target96.00
10-02Robert W. Baird · target106.00
09-10StoneX · “Buy” from “Hold”upgrade
09-10Coker Palmer · target105.00
Ratings, targets and estimates

Comparable companies

by business, not by industry label
4 more companies list XYZ as a comparable
Side by side:vs PYPL

The weekly

One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just XYZ. No account.

About Block

Block, Inc., operating through its subsidiaries, develops innovative tools that empower merchants to process card payments, gain insights from robust reporting and analytics, and benefit from expedited next-day fund settlement. The company offers a diverse range of hardware solutions, including the Magstripe reader for traditional swipe-based transactions, and the Contactless and chip reader, which accommodates Europay, MasterCard, and Visa (EMV) chip cards alongside Near Field Communication (NFC) payments. For comprehensive point-of-sale functionality, Block provides the Square Stand, enabling an iPad to serve as a complete payment terminal, and the Square Register, an integrated system combining proprietary hardware, software, and payment processing capabilities. Additionally, the Square Terminal offers a modern alternative to conventional keypad devices, functioning as both a payment processor and receipt printer, accepting tap, dip, and swipe payment methods. Beyond physical devices, Block supplies an extensive suite of software products. These encompass Square Point of Sale, Square Appointments, specialized applications for Retail and Restaurants, online commerce solutions like Square Online and Checkout, Square Invoices, Square Virtual Terminal, Square Team Management, Square Contracts, and a suite for Loyalty, Marketing, and Gift Cards, all managed through the Square Dashboard. Furthermore, Block supports developers with a dedicated platform featuring application programming interfaces (APIs) and software development kits (SDKs). Its portfolio also includes Cash App, a popular mobile service for sending, spending, and saving money, and Weebly, which delivers website hosting and domain registration services to customers. Serving an international clientele, the company's operations extend across the United States, Canada, Japan, Australia, Ireland, France, Spain, and the United Kingdom. Originally established as Square, Inc. in 2009, the San Francisco, California-based firm officially adopted the name Block, Inc. in December 2021.

CEO
Jack Dorsey
Headquarters
Oakland, CA
Employees
10,205
IPO
2015-11-19
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.