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 strong improvement 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 discount relative to its earnings growth potential.
In comparison to its peers, Block, Inc. has a lower P/E ratio than Cognizant Technology Solutions Corp. at 13.98 and significantly lower than Broadridge Financial Solutions, Inc. at 46.07, highlighting its relative attractiveness. Additionally, its PEG ratio of 0.10 is notably lower than the industry average, reinforcing the undervaluation narrative. However, the stock has underperformed against the S&P 500, with a year-to-date return of -21.40% compared to the index's 14.40%, suggesting that while the stock may be undervalued, it has faced significant challenges in the market.