Block, Inc. (SQ) DCF Valuation
A discounted-cash-flow model values Block, Inc. (SQ) at about $22.49 (TGM base case). Today's price of $57.22 sits above that range — by these conservative assumptions it looks richly valued; the reverse-DCF below is the better lens for a high-growth name.
Reverse DCF: at today's $57.22, the market is pricing in roughly +19.7%/yr free-cash-flow growth over the next decade (at a 10% required return) — versus its actual 5-year FCF CAGR of +64.0%. The price assumes a slowdown from its track record — a potential value signal if growth holds.
Current Price
$57.22
Fair-Value Range
$22.49
Market-Implied Growth
+19.7%/yr
vs +64.0% 5Y actual
SQ DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Illustrative model — not investment advice. Defaults to a conservative base case; the analyst (FMP) DCF, where available, is shown as a reference below.
Base inputs: FCF $983.2M · 0.90B shares · net cash $4.2B
Estimated Fair Value
$22.49
-60.7% vs $57.22
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 5.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $57.22; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.0% | $26.82 | $27.96 | $29.30 | $30.91 | $32.88 |
| 9.0% | $23.70 | $24.47 | $25.37 | $26.42 | $27.65 |
| 10.0% | $21.32 | $21.87 | $22.49 | $23.21 | $24.04 |
| 11.0% | $19.44 | $19.85 | $20.30 | $20.81 | $21.39 |
| 12.0% | $17.94 | $18.24 | $18.58 | $18.95 | $19.37 |
About Block, Inc.
Block, Inc., a company founded in 2009 and headquartered in San Francisco, California, (previously known as Square, Inc. until its rebranding in December 2021), develops a wide array of financial technology tools. Primarily, it equips businesses with solutions to process card payments efficiently, offering robust reporting and analytics, coupled with rapid next-day settlement services. Their hardware offerings cover various transaction needs: from the basic Magstripe reader for swiped cards, to the Contactless and chip reader compatible with EMV chip cards and Near Field Communication (NFC) payments. They also provide the Square Stand, which converts an iPad into a complete payment terminal; the integrated Square Register, combining hardware, point-of-sale software, and payment processing; and the versatile Square Terminal, a modern device that replaces traditional keypad terminals with its tap, dip, and swipe capabilities and built-in receipt printer. The company's extensive software suite addresses diverse business requirements, including Square Point of Sale, Square Appointments for scheduling, specialized platforms like Square for Retail and Square for Restaurants, and online commerce solutions via Square Online and Square Online Checkout. Additional tools encompass Square Invoices, Square Virtual Terminal, Square Team Management, Square Contracts, and comprehensive loyalty, marketing, and gift card programs, all managed through the Square Dashboard. Moreover, Block, Inc. supports the developer community with a platform featuring application programming interfaces (APIs) and software development kits (SDKs). Beyond its core merchant services, the company also offers the popular Cash App for individual money management (sending, spending, and storing funds) and Weebly, which provides website hosting and domain name registration solutions. Block, Inc. maintains a global presence, serving customers across the United States, Canada, Japan, Australia, Ireland, France, Spain, and the United Kingdom.
- Sector
- Technology
- Industry
- Software - Infrastructure
- CEO
- Jack Dorsey