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When InvestingPro’s Fair Value models identified Block, Inc. (NYSE:XYZ) as significantly undervalued on May 7, 2025, the fintech giant was trading at just $47.95. Three months later, the stock has validated this analysis with a remarkable 62% return, demonstrating the power of data-driven valuation models in identifying market opportunities. For investors seeking similar opportunities, the Most undervalued list continues to highlight promising stocks with significant upside potential.
Block, formerly known as Square, has established itself as a leading financial technology company providing payment processing, point-of-sale solutions, and digital payment services. When InvestingPro’s models flagged the stock, Block was showing strong fundamentals with annual revenue of $23.9 billion and EBITDA of $1.4 billion, despite experiencing share price volatility in the preceding months.
The Fair Value analysis proved prescient as multiple catalysts emerged to drive the stock higher. Block’s inclusion in the S&P 500 index, the successful beta launch of Square AI, and strong Q2 2025 results all contributed to the stock’s ascent. The company’s fundamentals have continued to improve, with EBITDA expanding to $1.6 billion and EPS growing from $4.23 to $4.80.
Wall Street has increasingly aligned with InvestingPro’s valuation thesis, with multiple analysts raising their price targets. Notable upgrades include KeyBanc’s target increase from $60 to $100 and TD Cowen’s revision from $85 to $95, reflecting growing confidence in Block’s business model and growth trajectory.
InvestingPro’s Fair Value methodology combines multiple valuation approaches, including discounted cash flow analysis, peer comparisons, and analyst consensus targets, to identify mispriced securities. In Block’s case, the model calculated a significant upside potential of 47%, which has been exceeded by the actual return of 62% in just three months.
The success of this Fair Value call exemplifies the advantage of combining comprehensive fundamental analysis with advanced valuation methodologies. InvestingPro subscribers gain access to these Fair Value analyses across thousands of stocks, along with real-time alerts and detailed financial metrics to identify similar opportunities in today’s market.