Is Block, Inc. overvalued or undervalued?

As of 1 May 2025, Block, Inc. has moved from a very attractive valuation grade to an attractive one, indicating a shift in perceived value. The company is currently considered undervalued, with a P/E ratio of 12, which is significantly lower than the industry average, and a PEG ratio of 0.10, suggesting strong growth potential relative to its price. Additionally, Block's ROE stands at 16.17%, reflecting solid profitability.
In comparison to its peers, Block, Inc. has a P/E ratio of 11.22, while Accenture Plc, another attractive peer, has a P/E of 26.54, and Cisco Systems, Inc. is rated fair with a P/E of 24.57. Block's EV to EBITDA ratio of 15.84 is also competitive when compared to its peers, indicating that it is priced favorably in relation to its earnings potential. Despite recent stock performance lagging behind the S&P 500, with a year-to-date return of -25.14% compared to the index's 2.44%, the underlying metrics suggest that Block, Inc. presents a compelling investment opportunity at its current valuation.