Introducing Valuation Models! 
Key Takeaways:
- Block stock could reasonably reach $102/share by the end of 2027, based on our valuation assumptions.
- This implies a total return of 40% from today’s price of $73/share, with an annualized return of 15% over the next 2.4 years.
- Block operates as a leading financial services and digital payments company through its Cash App and Square ecosystems, serving millions of consumers and sellers.
Block (XYZ) is a financial technology company that has evolved from a simple payment processor to a comprehensive financial ecosystem serving both sides of commerce.
Through its Square platform for sellers and Cash App for consumers, Block has created an integrated network that facilitates payments, banking, lending, and emerging technologies, such as Bitcoin mining.
Block benefits from its unique dual-sided ecosystem approach, with ample opportunities to drive network density and viral growth through peer-to-peer payments, enhanced AI automation capabilities, and strategic focus on underserved markets.
With innovative products like Cash App Borrow, Afterpay integration, and the upcoming Proto Bitcoin mining chips, Block continues to expand its addressable market.
With impressive historical revenue growth and a strategic shift toward autonomous AI systems through its “Goose” platform, Block maintains its position as a transformative force in financial technology while building sustainable competitive advantages through ecosystem network effects.
Here’s why XYZ stock could return 15% annually through 2027 and continue delivering strong performance through 2030.
Try TIKR’s Valuation Model today for FREE (It’s the easiest way to find undervalued stocks) >>>
What the Model Says for XYZ Stock
We analyzed Block’s upside using valuation assumptions based on the company’s ecosystem integration strategy and accelerating product innovation across both consumer and seller platforms.
Based on estimates of 7% annual revenue growth, 9% operating margins, and stable valuation multiples, the model projects XYZ stock could rise from $73/share to $102/share.
That represents a 40% total return and a 15% annualized return over the next 2.4 years.
Value Block with TIKR’s Valuation Model today for FREE (Find undervalued stocks fast) >>>
Our Valuation Assumptions
TIKR’s Valuation Model lets you plug in your own assumptions for a company’s revenue growth, operating margins, and P/E multiple, and calculates the stock’s expected returns.
Here’s what we used for XYZ stock:
1. Revenue Growth: 7%
Block delivered a solid performance in Q1, with Square gaining market share and Cash App showing improvement from March to April.
It expects growth acceleration in the second half of 2025, driven by the expansion of Cash App Borrow, the integration of Afterpay, and the launch of Proto Bitcoin mining systems.
We used a 7% forecast reflecting Block’s conservative guidance approach while incorporating potential upside from ecosystem integration, AI automation capabilities, and new product launches, including the revolutionary Bitcoin mining technology.
2. Operating Margins: 9%
Block demonstrates improving operational efficiency with record adjusted operating income and disciplined expense management.
Its focus on AI-driven automation through its “Goose” platform positions it for significant productivity gains and margin expansion opportunities.
3. Exit P/E Multiple: 24x
XYZ stock trades at reasonable multiples for a transformative fintech company with multiple growth vectors.
We maintain current valuation levels given Block’s innovative approach to financial services and potential breakthrough technologies in Bitcoin mining and AI automation.
Build your own Valuation Model to value any stock (It’s free!) >>>
What Happens If Things Go Better or Worse?
TIKR’s valuation tool allows investors to test a wide range of outcomes based on how XYZ stock performs through 2030 under different scenarios (these are estimates, not guaranteed returns):
- Low Case: Macro headwinds and execution challenges → 8% annual returns
- Mid Case: Steady ecosystem growth and successful product launches → 14% annual returns
- High Case: Breakthrough AI automation and Bitcoin mining success → 19% annual returns
Even in the conservative case, Block stock offers attractive single-digit returns, while the upside scenario could deliver exceptional performance if the company successfully executes its autonomous AI vision and captures a significant share of the Bitcoin mining market.
See analysts’ growth forecasts and price targets for any stock (It’s free!) >>>
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
