Is Block, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Block, Inc. has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company is currently considered undervalued, supported by a P/E ratio of 12, a PEG ratio of 0.10, and an EV to EBITDA ratio of 15.84, all of which suggest that the stock is trading at a lower valuation compared to its peers. In comparison, Cognizant Technology Solutions Corp. has a P/E of 13.98, while Broadridge Financial Solutions, Inc. has a significantly higher P/E of 46.07, reinforcing Block's relative attractiveness.
Despite the favorable valuation metrics, Block, Inc. has underperformed against the S&P 500 in recent periods, with a year-to-date return of -22.99% compared to the S&P 500's 14.40%. This stark contrast highlights the potential for recovery in Block's stock price, given its attractive valuation ratios.