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DIRR3 Will Likely Deliver Attractive Returns Despite Slightly Higher Required Return

Update shared on 07 Dec 2025

Fair value Decreased 6.61%
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AnalystConsensusTarget's Fair Value
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1Y
55.0%
7D
-20.6%

Analysts have trimmed their price target on Direcional Engenharia from R$20.96 to R$19.58, citing slightly weaker assumptions for long term revenue growth and profitability, a modestly higher discount rate, and a lower future P E multiple.

Valuation Changes

  • Fair Value Estimate reduced modestly from R$20.96 to R$19.58, reflecting slightly more conservative assumptions.
  • Discount Rate risen slightly from 21.17 percent to 21.83 percent, increasing the required return applied to future cash flows.
  • Revenue Growth trimmed from 19.20 percent to 17.21 percent, indicating a more cautious view on long term expansion.
  • Net Profit Margin lowered marginally from 17.46 percent to 16.82 percent, implying a small downgrade to expected profitability.
  • Future P E Multiple eased slightly from 17.28x to 16.89x, signaling a modestly lower valuation multiple applied to earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.