What about the valuation?
It’s one thing to have a good growth story… it’s another to be trading at a valuation worth buying at. No matter how good the future is, if all of it is priced in (and then some), the potential for upside is likely limited.
Due to Block’s checkered history with profitability, the price-to-sales (P/S) ratio is a more suitable tool for some fundamental analysis.
On this basis, Block shares are trading at their lowest multiple since early 2017. The company is valued similarly to Tyro Payments Ltd (ASX: TYR) at a P/S multiple of around two times, as shown below.
Source: S & P Market Intelligence
For reference, Block’s revenue has increased by nearly 11 times since late 2016. Nevertheless, the market appears unwilling to pay a greater premium while profitability proves to remain elusive.
hihttps://www.********.au/2023/05/14/5-must-see-images-for-anyone-considering-block-shares/
Block is on 2x sales. The lowest valuation in its history
What about the valuation?It’s one thing to have a good growth...
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Last
$95.19 |
Change
-1.120(1.16%) |
Mkt cap ! $4.403B | |||
| Open | High | Low | Value | Volume |
| $95.61 | $95.61 | $95.10 | $6.516M | 68.16K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 130 | $95.19 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $95.24 | 23 | 1 |
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| Last trade - 10.31am 02/10/2024 (20 minute delay) ? |
| SQ2 (ASX) Chart |