SQ Stock Price Chart More Charts

SQ Price/Volume Stats

Square, Inc. (SQ) Company Bio

Square, Inc. develops and provides point-of-sale software worldwide. It provides Square Register, a point-of-sale system that takes care of digital receipts, inventory, and sales reports, as well as provides analytics and feedback. The company was founded in 2009 and is based in San Francisco, California.

SQ Price Forecast Based on DCF Valuation

Below please find a table outlining a discounted cash flow forecast for SQ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Square Inc ranked in the 85st percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 602.17% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SQ, they are:

• The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 11.65% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• Square Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.99. This coverage rate is greater than that of only 14.56% of stocks we're observing for the purpose of forecasting via discounted cash flows.
• As a business, Square Inc experienced a tax rate of about 0% over the past twelve months; relative to its sector (Technology), this tax rate is higher than merely 0% of stocks generating free cash flow.

AMD, DAVA, TAIT, GILT, and AVGO can be thought of as valuation peers to SQ, in the sense that they are in the Technology sector and have a similar price forecast based on DCF valuation.