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
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Square Inc. To summarize, we found that Square Inc ranked in the 71th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 213.5%. The most interesting components of our discounted cash flow analysis for Square Inc ended up being:
In the past 3.51 years, Square Inc has a compound free cash flow growth rate of 1.03%; that's higher than 89.29% of free cash flow generating stocks in the Technology sector.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than merely 12.99% of the free cash flow producing stocks we're observing.
SQ's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 48.99% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Square Inc? See ECOM, SOFO, SNX, INTZ, and CIEN.
* Benzinga has examined the prospects for many investor favorite stocks over the past week. * This week's bullish calls the he electric vehicle leader and a car rental giant. * A financial giant and a COVID-19 vaccine play were among the bearish callsThe big three U.S. indexes ended the holiday-shortened week with gains of at least 3%. A big bankruptcy in the oil patch comes ahead of a possible rekindled oil price war, and jobs numbers were better than expected.Also, the leading electric vehicle maker trounced expectations last week and became the world's most valuable automaker. And the COVID-19 resurgence continues to wreak havoc on businesses large and small.Benzinga continues to examine the prospects for many of the stocks most popular with investors. Here are some of thi...
On this day, 244 years ago, all but one of the 13 United Colonies officially adopted the Declaration of Independence, thus declaring their collective right to govern without England calling the shots. If you have spare cash that won't be needed to pay bills or cover emergencies, then the following blend of growth and income stocks should be perfect to help you secure your financial freedom. The first top stock that'll put you on the path toward financial independence is e-commerce giant Amazon (NASDAQ: AMZN).
Square's (NYSE: SQ) Cash App is worth between $27 billion and $30 billion in enterprise value, according to an estimate from MoffettNathanson analyst Lisa Ellis. Cash App's user base is growing rapidly, and Square is monetizing its users extremely well. The company said it was on pace to generate $30 per year on average from its 24 million Cash App in December.
NEW YORK, July 2, 2020 /PRNewswire/ -- InvestorsObserver issues critical PriceWatch Alerts for NIO, NCLH, HTZ, SQ, and ACB. To see how InvestorsObserver's proprietary scoring system rates these stocks, view the InvestorsObserver's PriceWatch Alert by selecting the corresponding link. NIO:…
I've been recommending Square (NYSE:SQ) for this entire year. Admittedly, at first that call looked a bit shaky. The novel coronavirus pandemic sent stocks plunging -- and Square stock wasn't immune.Source: IgorGolovniov / Shutterstock.com The company's exposure to small businesses suggested significant risk if the broader economy went into a tailspin. At the lows, Square stock incredibly traded near $30.Of course, the market has rallied since then. Fears of a recession and record-high unemployment are moderating. Another record jobs report no doubt helps.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSquare stock has been one of the biggest winners in the bounce since March. It has now gained over 250% from its lows. And with the parabolic gains of late, I ca...