Square’s Growth Still Justifies Its Premium Valuation
Square (NYSE: SQ) is a divisive stock for the bulls and bears. The bulls are impressed by the online payment company's robust revenue growth and expanding ecosystem, but the bears warn of its competitive threats, lack of consistent profits, and high valuation.
Square's stock is certainly expensive at 86 times its adjusted earnings forecast for 2020. But if we take a closer look at Square's core business, we'll notice that its growth still justifies its premium valuation for five simple reasons.
Image source: Square.
Source Fool.com