SQSP Fair Value
What is the fair value of SQSP?
As of 2025-05-17, the Fair Value of Squarespace Inc (SQSP) is -0.18 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 46.57 USD, the upside of Squarespace Inc is -100.4%.
Is SQSP a good investment?
With the market price of 46.57 USD and our fair value calculation, Squarespace Inc (SQSP) is not a good investment. Investing in SQSP stocks now will result in a potential loss of 100.4%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | 5Y Avg | |
| Net income | 58.2 | 30.6 | -249.1 | -252.2 | -7.08 | -84 |
| YoY growth | 35% | -47.4% | -914.1% | -1.2% | 97.2% | -166.1% |
| Market Cap (mil) | EPS | Fair Value | Upside | ||
| a | |||||
Squarespace Inc | 6,449 | -0 | -0.18 | -100.4% | |
| GoDaddy Inc | 27,092 | 5.3 | 26.5 | -86.1% | |
| Verisign Inc | 26,587 | 8.4 | 55.07 | -80.6% | |
| Akamai Technologies Inc | 11,401 | 3.1 | 15.49 | -80.1% | |
| Switch Inc | 8,393 | 1.5 | 32.4 | -5.4% | |
| DigitalOcean Holdings Inc | 2,835 | 1.2 | 29.77 | -4.3% | |
| Market Cap (mil) | 6,449 |
| P/E | - |
| Forward P/E | 101.3x |
| EPS | -0.04 |
| Avg earnings growth rate | -166.1% |
| TTM earnings | -5 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.