Block (XYZ) is back in focus after Q1 results topped guidance, management lifted its 2026 outlook, and the stock reacted to new financial products plus inclusion on Goldman Sachs’ US Conviction List.

At a share price of US$69.52, Block has seen a 2.01% 7 day share price return and a 16.27% 90 day share price return. The 1 year total shareholder return of 12.91% sits against headlines around Q1 earnings, new savings products, client case studies like Coffee Dose and Baker St Cafe, and its recent addition to Goldman Sachs’ US Conviction List.

If this mix of product launches and renewed interest has you looking beyond Block, it could be a good moment to scan other opportunities in financial technology and payments through 20 top founder-led companies

With Q1 guidance beaten, a higher 2026 outlook, fresh products and a roughly 29% intrinsic discount flagged, the key question is whether Block’s recent run still leaves mispricing on the table or if the market is already baking in future growth.

Most Popular Narrative: 23.2% Undervalued

With Block trading at $69.52 against a narrative fair value of about $90.52, the current price sits below what this widely followed storyline implies.

The scaling and innovation within Square for Businesses highlighted by the launch of new hardware like Square Handheld, adoption of omnichannel commerce tools, and growing field/telesales teams positions Block to further capture share from the global trend toward digitalization and consolidation of small business commerce. This supports topline growth and eventual margin expansion as the business scales internationally.

Curious what underpins that gap between fair value and today’s price? The narrative leans on stronger earnings power, richer margins, and a higher future earnings multiple. The exact mix of those assumptions is where things get interesting.

Result: Fair Value of $90.52 (UNDERVALUED)

However, this hinges on Cash App sustaining momentum and crypto related revenues staying resilient, while rising competition and payment commoditization could pressure margins and growth assumptions.

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Another View: Rich Multiples Muddy the Undervaluation Story

The 23.2% gap to fair value looks appealing. However, the P/E of 51.7x is very high compared with peers at 10.9x, the US Diversified Financial industry at 15.1x, and even a fair ratio of 27.2x. If sentiment cools, the share price could move closer to those lower benchmarks instead.

For a closer look at how these earnings multiples compare with fundamentals and peers, check the valuation breakdown through See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

If this mix of optimism and caution resonates, now is a good time to look through the data yourself and decide how the trade off of risks and rewards sits with your goals. Then go deeper into the 3 key rewards and 1 important warning sign

Ready to hunt for more investment ideas?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.