The fintech looks expensive on paper, but its valuation shrinks sharply on future earnings, if you believe the growth story that gets it there.

At first glance, Block (XYZ) stock looks expensive. Trading at about 59.2 times the last twelve months of reported earnings, it carries the kind of premium that often stops an investor’s analysis cold. But the real question isn’t the price tag today. It’s whether the growth analysts expect to arrive over the next two years justifies it.

The market’s view of a stock’s valuation is rarely static, and for a company like Block, the contrast between peer valuations can be instructive. For a deeper look at a key competitor, you can read more about the current debate over PYPL stock.