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Block PS Ratio

: 2.81 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Block's share price is $87.95. Block's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $31.33. Hence, Block's PS Ratio for today is 2.81.

The historical rank and industry rank for Block's PS Ratio or its related term are showing as below:

SQ' s PS Ratio Range Over the Past 10 Years
Min: 1.87   Med: 6.83   Max: 14.6
Current: 2.81

During the past 10 years, Block's highest PS Ratio was 14.60. The lowest was 1.87. And the median was 6.83.

SQ's PS Ratio is ranked worse than
50.64% of 2674 companies
in the Software industry
Industry Median: 2.74 vs SQ: 2.81

Block's Revenue per Sharefor the three months ended in Jun. 2022 was $7.58. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $31.33.

Warning Sign:

Block Inc revenue growth has slowed down over the past 12 months.

During the past 12 months, the average Revenue per Share Growth Rate of Block was 2.90% per year. During the past 3 years, the average Revenue per Share Growth Rate was 63.00% per year. During the past 5 years, the average Revenue per Share Growth Rate was 47.60% per year.

During the past 10 years, Block's highest 3-Year average Revenue per Share Growth Rate was 116.30% per year. The lowest was 3.00% per year. And the median was 37.10% per year.

Back to Basics: PS Ratio


Block PS Ratio Historical Data

The historical data trend for Block's PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Block Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.94 6.90 6.19 11.05 4.59

Block Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PS Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.01 7.53 4.59 4.14 1.96

Competitive Comparison

For the Software - Infrastructure subindustry, Block's PS Ratio, along with its competitors' market caps and PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Block PS Ratio Distribution

For the Software industry and Technology sector, Block's PS Ratio distribution charts can be found below:

* The bar in red indicates where Block's PS Ratio falls into.



Block PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

Block's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=87.95/31.334
=2.81

Block's Share Price of today is $87.95.
Block's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $31.33.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


Block  (NYSE:SQ) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


Block PS Ratio Related Terms

Thank you for viewing the detailed overview of Block's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Block Business Description

Block logo
Address
1455 Market Street, Suite 600, San Francisco, CA, USA, 94103
Founded in 2009, Block provides payment acquiring services to merchants, along with related services. The company also launched Cash App, a person-to-person payment network. Block has operations in Canada, Japan, Australia, and the United Kingdom; about 5% of revenue is generated outside the U.S.
Executives
Rothstein Sharon director C/O YELP INC. 350 MISSION STREET, 10TH FLOOR SAN FRANCISCO CA 94105
Carter Shawn Corey director C/O S. CARTER ENTERPRISES, LLC 1411 BROADWAY NEW YORK NY 10018
Walker Darren director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Grassadonia Brian officer: Cash App Lead 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Meeker Mary G director 2750 SAND HILL ROAD MENLO PARK CA 94025
Brooks Amy director 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Ahuja Amrita officer: Chief Financial Officer 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Murphy Timothy Hugh officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Daswani Mohit officer: Interim CFO & Treasurer C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Whiteley Sivan officer: Gen. Counsel & Corp. Secretary 1455 MARKET STREET SUITE 600 SAN FRANCISCO CA 94103
Patterson Anna director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Rao Naveen G director C/O SQUARE, INC. 1455 MARKET STREET, SUITE 600 SAN FRANCISCO CA 94103
Garutti Randall J director C/O SHAKE SHACK INC. 24 UNION SQUARE EAST, 5TH FLOOR NEW YORK NY 10003
Reses Jacqueline D officer: Capital Lead & People Lead C/O SQUARE, INC. 1455 MARKET STREET #600 SAN FRANCISCO CA 94103
Smith Hillary B officer: Gen. Counsel & Corp. Secretary C/O YEXT, INC 61 NINTH AVENUE NEW YORK NY 10011

Block Headlines

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