Posted 12/18/2023, 10:43:30 AM
Block's Growth Outpaces Industry but Valuation Lags
- Despite strong gains recently, Block's price-to-sales ratio is in line with industry median
- Revenue growth has been impressive in recent years, up 23% last year and 172% over 3 years
- Analysts forecast Block's revenue to grow 12% per year over next 3 years, faster than industry average
- It's unclear why Block's valuation matches industry given its stronger growth outlook
- Revenue outlook is strong, but some investors may still be anticipating instability in growth