Square Inc. specializes in mobile payments and electronic transactions using the Square chip reader. The company is led by co-founder Jack Dorsey, who also co-founded and currently runs Twitter. Square went public in 2015 and has been striving to live up to its initial hype ever since. Here’s a breakdown of how the company is faring now.
Click here to learn more about Square and other fintech startup investment opportunities to watch.
|What Square Is Worth|
|Square Share Price, 52-Week Range||$22.66-$69.40|
|Square Market Cap, 52-Week Range||$6.6B-$20.1B|
|GOBankingRates’ Evaluation of
Square Net Worth
|All information on 52-week range accurate as of June 28, 2018.|
|CEO Jack Dorsey Net Worth||$4.7B*|
Square Market Cap Range: $6.6B-$20.1B
Market capitalization is determined by the total dollar value of a company’s outstanding shares, which helps investors determine the relative size of a company. Square’s market cap range reflects how the market as a whole values the company, and investor differences mean the value is in contention. Company growth also affects the market cap, as Square’s share price fluctuations directly affect its size as viewed by investors.
Square Net Worth: $961M
Market caps offer one view of what the market values a company at, but because of unpredictable market forces, that value is also volatile, even if it can present a relatively accurate price range. In an effort to bypass market volatility, the GOBankingRates Evaluation calculates a company’s net worth based on recent annual reports of income and profit while also taking into consideration the company’s assets and liabilities.
Based on Square’s revenue and profits from the last three years, it is worth more than $960 million.
Square Jumps on the Bitcoin Bandwagon
Square’s IPO proved less than satisfying, opening up with a valuation lower than expected. According to the Wall Street Journal, its shares were initially priced at $9, below the original projection of $11 to $13 and much less than the $15.46 figure Square listed for private investors while fundraising. Despite incurring net losses from 2015 to 2017, the company can still generate revenue. It seems poised to clear the $1 billion hurdle in adjusted revenue in 2018, MarketWatch reported in February.
Square’s other area of concentration currently is to focus on the cryptocurrency bitcoin. In June 2018, New York’s Department of Financial Services approved Square’s virtual currency license, allowing New Yorkers using Square’s Cash App to trade in the cryptocurrency, CNBC reported. Square’s cryptyo success remains to be seen, however. The company spent nearly as much as it sold in bitcoin in the first quarter, CNBC reported in May 2018.
Square’s Founders and Investors
Square CEO Jack Dorsey conceived of Square with co-founder Jim McKelvey as a versatile way of accepting payments. McKelvey, who has experience as a glass-blowing artist, became frustrated when he couldn’t sell a piece to a customer with a credit card, according to Inc. He approached Dorsey about this problem, and their collaboration resulted in Square Inc.
Get Ready: 15 Ways Cash Is Dying a Quick Death
Square counts investment giants The Vanguard Group Inc., FMR, LLC, and BlackRock Inc. among its investors. In February 2016, credit card company Visa disclosed its ownership of nearly 10 percent of class A shares of the company in an SEC filing, according to CNN Money, perhaps banking on the potential of Square payments.
More on Business
- Why You Could Be Your Own Biggest Financial Obstacle
- How to Make Your First Million the Warren Buffett Way
- How Your Favorite Brands Reinvented Themselves and Made Big Money
Methodology: The GOBankingRates Evaluation assesses a company’s net worth based on the company’s total assets, total liabilities, and revenue and net income from the last three years. Base value is established by subtracting total liabilities from total assets from the company’s last full fiscal year. Income value is established by taking the average of the revenue from the last three full fiscal years, 10 times the average of the net profits from the last three full fiscal years, and then calculating the average of those two figures. The final GOBankingRates Evaluation number is the sum of the base value and the income value.
* Jack Dorsey’s net worth accurate as of June 29, 2018, according to Forbes’ The World Billionaires 2018 list’s real-time data.