Cash App Could Be Worth More Than the Rest of Square Combined
Square's (NYSE: SQ) Cash App is worth between $27 billion and $30 billion in enterprise value, according to an estimate from MoffettNathanson analyst Lisa Ellis. By contrast, the rest of Square's business is only worth $23 billion to $26 billion by the same estimate.
Cash App's user base is growing rapidly, and Square is monetizing its users extremely well. The company said it was on pace to generate $30 per year on average from its 24 million Cash App in December. Ellis sees the service reaching 60 million users within five to seven years with Square generating $85 to $90 in revenue per user each year. That would mean it generates over $5 billion in annual revenue, nearly nine times the amount it generated in 2019, excluding bitcoin.
Image source: Square.
Source Fool.com
