SQ
Square Inc
Price:  
86.96 
USD
Volume:  
5,796,990
United States | IT Services

Square DCF Valuation - Growth Exit 5Y

14.6 %
Upside

What is the DCF valuation of Square?

The Discounted Cash Flow (DCF) valuation of Square Inc (SQ) is 99.64 USD. With the latest stock price at 86.96 USD, the upside of Square Inc based on DCF is 14.6%.

Is Square a buy or a sell?

Based on the latest price of 86.96 USD and our DCF valuation, Square Inc (SQ) is a buy. Buying Square stocks now will result in a potential gain of 14.6%.

Range Selected
WACC / Discount Rate7.0% - 10.3%8.6%
Long-term Growth Rate 2.5% - 4.5%3.5%
Fair Price66.26 - 204.7199.64
Upside-23.8% - 135.4%14.6%
86.96 USD
Stock Price
99.64 USD
Fair Price
REVENUE & EXPENSES
CAPEX
D&A
WORKING CAPITAL
TERMINAL VALUE

Square DCF Valuation: Revenue & Expenses Forecast

(USD in millions)Projections
12-202312-202412-202512-202612-202712-2028
Revenue21,91624,50930,87439,36447,58856,043
% Growth
25%12%26%27%21%18%
Cost of goods sold(14,411)(15,310)(18,322)(22,192)(25,487)(28,515)
% of Revenue66%62%59%56%54%51%
Selling, G&A expenses(4,228)(4,729)(5,957)(7,595)(9,181)(10,812)
% of Revenue19%19%19%19%19%19%
Research & Development(2,721)(3,043)(3,833)(4,887)(5,908)(6,958)
% of Revenue12%12%12%12%12%12%
Net interest & other expenses(585)(654)(824)(1,051)(1,270)(1,496)
% of Revenue3%3%3%3%3%3%
Tax expense8(11)(27)(51)(80)(115)
Tax rate-28%1%1%1%1%1%
Net profit(21)7621,9113,5895,6618,147
% Margin0%3%6%9%12%15%