Block (XYZ) is in focus after reports it may cut up to 10% of its workforce, while investors also look ahead to fourth quarter earnings and weigh fresh products, such as Square AI and Cash App updates.

Those workforce headlines and product launches come after a tough stretch for the stock, with a 30 day share price return of 24.49% decline and a 1 year total shareholder return of 40.71% decline. This suggests momentum has been fading even as Square AI and new Cash App features keep the story moving.

If this kind of fintech volatility has your attention, it could be a good time to scan other opportunities in digital finance and payments. You can start with 16 cryptocurrency and blockchain stocks as a curated jumping off point.

With the share price under pressure, a lower P/E than many peers and a recent analyst consensus that still sits above the current US$49.80 level, you have to ask: is this a genuine mispricing, or is the market already baking in future growth?

Most Popular Narrative: 49.1% Undervalued

Block's most followed narrative sets a fair value of $97.93 per share, almost double the last close at $49.80. This naturally raises questions about what assumptions sit underneath that gap.

Under a three-year projection with 6% annual revenue growth and a 10% profit margin, Block's earnings power scales steadily from its current base. Applying a 25× future P/E multiple to those projected earnings yields an implied future share price of ~$97.

Curious how a mid single digit revenue growth rate and a double digit margin feed into that near $100 figure? The narrative leans on compounding profitability, a richer future earnings multiple and disciplined costs. If you want to see exactly how those moving parts connect to the $97.93 fair value, the full story lays out every step.

Result: Fair Value of $97.93 (UNDERVALUED)

However, this hinges on regulatory issues staying contained and Bitcoin related swings not hitting Cash App or Block’s earnings power harder than expected.

Build Your Own Block Narrative

If you look at the numbers and come to a different conclusion, or simply want to rely on your own work, you can build a complete thesis in just a few minutes by starting with Do it your way.

A great starting point for your Block research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas?

If Block has sharpened your focus, do not stop here. The right watchlist can come from a few focused screeners that surface very different types of opportunities.

• Target potential mispricings by scanning 53 high quality undervalued stocks that pair solid fundamentals with prices that may not fully reflect them.
• Prioritise resilience with 85 resilient stocks with low risk scores and concentrate on companies that score well on stability and risk controls.
• Spot earlier stage potential using our screener containing 23 high quality undiscovered gems and see which quieter names stand out on quality metrics before they draw wider attention.

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.