Update shared on 09 Feb 2026
Fair value Increased 43%Narrative Update
Analysts now place a higher fair value on Guararapes Confecções, lifting their target from R$7.00 to R$10.00 as they factor in updated assumptions for revenue growth, profit margins, the discount rate, and future P/E levels.
Valuation Changes
- Fair Value: The target price has risen from R$7.00 to R$10.00, reflecting a higher implied valuation for Guararapes Confecções.
- Discount Rate: The analyst model now applies a slightly higher discount rate, moving from 23.28% to 23.85%, which typically makes future cash flows less valuable in present terms.
- Revenue Growth: Assumed annual revenue growth has increased from 5.72% to 9.26%, indicating higher expectations for top line expansion in the model.
- Net Profit Margin: The assumed net profit margin has been trimmed from 5.60% to 5.01%, pointing to more conservative expectations on profitability per unit of revenue.
- Future P/E: The expected future P/E multiple used in the valuation has risen from 9.72x to 14.07x, implying a higher assumed earnings multiple for the shares.
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