Update shared on 24 Dec 2025
Fair value Increased 42%Analysts have raised their fair value estimate for Guararapes Confecções from R$12.00 to R$17.00, citing stronger expected revenue growth and a higher justified future P/E multiple, despite only marginal adjustments to discount rate and profit margin assumptions.
What's in the News
- Guararapes Confecções S.A. scheduled an Analyst and Investor Day to present its strategic priorities and financial outlook to the market (Key Developments).
Valuation Changes
- The fair value estimate was raised significantly from R$12.00 to R$17.00 per share, reflecting a more optimistic assessment of upside potential.
- The discount rate was adjusted marginally lower from 23.22% to 23.21%, indicating only a negligible change in the perceived risk profile.
- Revenue growth was revised up meaningfully from 7.70% to 9.50%, pointing to stronger expected top line expansion.
- The net profit margin was trimmed slightly from 6.36% to 6.30%, implying a modestly more conservative view on profitability.
- The future P/E increased markedly from 13.88x to 18.58x, suggesting a higher justified valuation multiple for projected earnings.
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