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Block (SQ) GF Value Rank

: 9 (As of Today)
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Block has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Software - Infrastructure subindustry, Block's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Block GF Value Rank Distribution

For the Software industry and Technology sector, Block's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Block's GF Value Rank falls into.



Block GF Value Rank Related Terms

Thank you for viewing the detailed overview of Block's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


Block (SQ) Business Description

Address
1455 Market Street, Suite 600, San Francisco, CA, USA, 94103
Founded in 2009, Block provides payment services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. In 2022, Square's payment volume was a little over $200 million.
Executives
Brian Grassadonia officer: Cash App Lead 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103
Amrita Ahuja officer: Chief Financial Officer 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103
Chrysty Esperanza officer: Interim Counsel Lead 1955 BROADWAY, SUITE 600, OAKLAND CA 94612
Ajmere Dale officer: Chief Accounting Officer 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103
Roelof Botha director C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Alyssa Henry officer: Seller Lead 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103
Lawrence Henry Summers director JOHN F. KENNEDY SCHOOL OF GOVERNMENT, MAILBOX 8, 79 JFK STREET, CAMBRIDGE MA 02138
Neha Narula director 1955 BROADWAY, SUITE 600, OAKLAND CA 94612
Sivan Whiteley officer: Gen. Counsel & Corp. Secretary 1455 MARKET STREET, SUITE 600, SAN FRANCISCO CA 94103
Sharon Rothstein director C/O YELP INC., 350 MISSION STREET, 10TH FLOOR, SAN FRANCISCO CA 94105
Mckelvey James Morgan Jr. director, 10 percent owner 2645 SOUTH BAYSHORE #802, MIAMI FL 33133
Carter Shawn Corey director C/O S. CARTER ENTERPRISES, LLC, 1411 BROADWAY, NEW YORK NY 10018
Jack Dorsey director, 10 percent owner, officer: President, CEO & Chairman C/O TWITTER INC, 1355 MARKET STREET SUITE 900, SAN FRANCISCO CA 94103
Mary G Meeker director 2750 SAND HILL ROAD, MENLO PARK CA 94025
David A Viniar director C/O GOLDMAN SACHS GROUP INC, 200 WEST STREET, NEW YORK NY 10282