How to buy Afterpay (SQ2) shares in Australia
Learn how to easily invest in Afterpay shares.
Afterpay Limited is an Australian payments company best known for its buy now pay later (BNPL) service. In 2021, the company was acquired by US tech giant Square, Inc. (NYSE: SQ) which subsequently listed on the Australian Securities Exchange (ASX) under the ticker code SQ2. This means that you'll need to buy shares in Square to invest in its subsidiary Afterpay.
Afterpay was founded in 2014 in Australia and has since expanded into the United States, New Zealand, Canada, the United Kingdom, France, Italy and Spain. As a strong contender in the digital payments and credit space, Afterpay has been a market favourite since it launched onto the stock market in 2016.
How to buy shares in Afterpay
To buy shares listed in Australia such as Afterpay, you'll need to sign up to a broker with access to the ASX. Our table can help you compare share trading platforms and choose. Then follow these steps.
Open and fund your brokerage account. Complete an application with your personal and financial details, including your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
Search for Afterpay. Find the share by name or ticker symbol: SQ2. Research its history to confirm it's a solid investment against your financial goals.
Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Afterpay reaches your desired price. Look into dollar-cost averaging to spread out your risk, which smooths out buying at consistent intervals and amounts.
Decide on how many to buy. At today's price, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
Check on your investment. Congratulations, you own a part of Afterpay. Optimise your portfolio by tracking how your stock and the business performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that affect your stock.
Afterpay stock price (ASX:SQ2)Use our graph to track the performance of SQ2 stocks over time.
Afterpay shares at a glance
|$60.56 - $121.4
|50-day moving average
|200-day moving average
|Earnings per share (TTM)
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Is it a good time to buy Afterpay stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Afterpay price performance over time
|1 week (2024-02-16)
|1 month (2024-01-24)
|3 months (2023-11-24)
|6 months (2023-08-24)
|1 year (2023-02-24)
|2 years (2022-02-24)
Is Afterpay under- or over-valued?
Valuing Afterpay stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Afterpay's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Afterpay's PEG ratio
Afterpay's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.0845. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Afterpay's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Afterpay's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $53.4 million (£0.0 million).
The EBITDA is a measure of a Afterpay's overall financial performance and is widely used to measure stock profitability.
|Gross profit TTM
|Return on assets TTM
|Return on equity TTM
TTM: trailing 12 months
Afterpay share dividends
We're not expecting Afterpay to pay a dividend over the next 12 months.
Afterpay share price volatility
Over the last 12 months, Afterpay's shares have ranged in value from as little as $60.56 up to $121.4. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (AU average) beta is 1, while Afterpay's is 2.526. This would suggest that Afterpay's shares are significantly more volatile than the average for this exchange and represent a higher risk.
Block, Inc. operates as a technology company with a focus on financial services. It builds tools to help people in accessing the economy. Its products include Square that makes commerce and financial services easy and accessible for sellers with its integrated ecosystem of technology solutions; Cash App to send, spend, or invest money in stocks or bitcoin; Afterpay for connecting consumers and businesses; TIDAL; and TBD that is building an open source platform and developer infrastructure which enables everyone to access and participate in the global economy. The company operates in the United States and internationally. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in Oakland, California.
24 March 2023: Block's shares fell just shy of 20% following a report by short-seller Hindenburg Research. The report suggests that 40% to 75% of the accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual. This is based on estimations from a former Block employee.
30 January 2023: Consumer groups have urged for full regulation of the buy now pay later industry in submissions to the Treasury as the Australian government draws up plans for regulation of the sector. Largest player Afterpay, now owned by Block, said an industry code of conduct is appropriate. Rivals such as CBA and ZIP favour a middle ground.
23 January 2023: The ASX-listed shares of payment giant Block lifted to a 3-month high. Shares tracked gains on the Nasdaq as expectations grow about inflation cooling in the United States, fueling hopes that the Federal Reserve will ease up its policy-tightening campaign.
Frequently asked questions
- EOD price data and company information for Afterpay accessed 23 Feb 2024
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