Is Block, Inc. overvalued or undervalued?

As of 28 November 2025, the valuation grade for Block, Inc. has moved from very attractive to attractive, indicating a shift in its perceived value. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 12, which is lower than the industry average of 13.98, and an EV to EBITDA of 15.84 compared to peers like Cognizant Technology Solutions Corp. at 9.06. Additionally, the PEG ratio stands at a notably low 0.10, suggesting that growth expectations may not justify the current valuation.
In terms of peer comparison, Block, Inc. has a P/E ratio of 12.43, which is lower than that of Cognizant Technology Solutions Corp. at 13.98 and significantly lower than Broadridge Financial Solutions, Inc. at 46.07. The recent stock performance shows that while Block, Inc. outperformed the S&P 500 in the past week with a return of 7.83% compared to 3.73%, it has significantly underperformed over longer periods, with a YTD return of -21.40% versus the S&P 500's 16.45%. This trend reinforces the notion that Block, Inc. may be overvalued relative to its peers and market performance.