Is Block, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Block, Inc. has moved from very attractive to attractive. The company appears to be overvalued based on its current metrics. Key ratios include a P/E ratio of 12, an EV to EBITDA of 15.84, and a PEG ratio of 0.10, which suggests that while the company may have growth potential, its current valuation does not adequately reflect that potential compared to its peers.
In comparison to its peers, Block, Inc. has a lower P/E ratio than Cognizant Technology Solutions Corp., which stands at 13.98, and significantly lower than Broadridge Financial Solutions, Inc. at 46.07. Furthermore, Block's EV to EBITDA is higher than that of Cognizant, which is 9.06, indicating that it may be overvalued relative to its earnings potential. Notably, Block, Inc. has underperformed against the S&P 500 over the past year, with a return of -24.76% compared to the S&P 500's 14.18%, reinforcing the notion that the stock may not be a favorable investment at its current valuation.