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:
We started the process of determining a valid price forecast for Square Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Square Inc ranked in the 3th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Square Inc ended up being:
The company's balance sheet shows it gets 97% of its capital from equity, and 3% of its capital from debt. Its equity weight surpasses that of 78.19% of free cash flow generating stocks in the Technology sector.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 11.56% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 47.03% 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 AYX, CCRC, TCX, UPLD, and WDC.
We see Square (SQ) as long-term winner in the fintech space well positioned to benefit from the ongoing transition of all thing's financial services to digital. With Square boasting 16 fintech products across two ecosystems, it, along with PayPal (PYPL), gives investors a unique opportunity to gain exposure to the...
AlphaTech Equities on Seeking Alpha | October 2, 2020
Square announced this week it has released a new ordering tool for restaurants this week. The new self-serve ordering tool, which boasts a contactless experience, allows diners to place their order on their mobile device. The service doesn’t use complicated technology, but leverages a QR code that links the customer to the restaurant’s mobile-optimized ordering Read more… The post Square’s New Ordering Tool Sets Tone for the Future of the QR-Code appeared first on Finovate .
Being the CEO of a multinational company is hard. Now imagine simultaneously having to run two major companies. Such is the life that Jack Dorsey leads. As the CEO of Twitter (NYSE: TWTR ) and Square (NYSE: SQ ), Dorsey is the dictionary definition of a man with superhuman abilities. But how does he manage to run these two companies successfully? His intense wellness habits. The 43-year-old follows a series of set habits , including an extreme morning routine that involves waking up at 5 a.m., taking cold showers, and walking 5 miles to work. Here are five things that Jack Dorsey does in the morning to remain productive and focused throughout the day. Wake Up At 5 a.m. Like many other executives, Dorsey is part of the admirable 5 a.m. club. On most weekdays, he's up before the sun rises...
Summary List Placement Over the past decade, fintechs have become more than a niche group of disruptive startups out of Silicon Valley. Today, fintechs like Stripe and Square have achieved massive scale — and valuations — and are an essential part of the financial-services industry. But most fintechs aren't licensed banks, meaning they don't have a banking charter issued by the Office of the Comptroller of the Currency (OCC), one of the key regulators overseeing consumer banking. Instead, they are regulated and licensed at the state level, which means to operate nationally they have to work with 50 different regulatory bodies. That could soon change, however, as the OCC is mulling a charter aimed specifically at fintechs that process payments, allowing them to be regulated at a national...