Magazine Luiza

Amazon And Alibaba Will Drive Cost Pressures And Erode Margins

AnalystLowTarget

Not Invested

Community Contributor

Published

30 Jul 25

Updated

12 Dec 25

Views

n/a

AnalystLowTarget's Fair Value

n/a

36.0%

-8.5%

36.0%

-8.5%

You can edit this narrative until Dec 13 8:10 AM. Then, changes will post as Updates.

Author's Valuation

R$5.566.2% overvalued

AnalystLowTarget Fair Value

Narrative

Updates1

Shared on 12 Dec 25

MGLU3: Lower Discount Rate Will Not Prevent Margin Squeeze

Analysts have modestly raised their price target on Magazine Luiza, citing slightly stronger expected revenue growth and a lower discount rate, despite some pressure on long term profit margins and higher projected valuation multiples. Valuation Changes Fair Value: unchanged at R$5.50 per share, indicating no revision to the intrinsic value estimate.

AnalystLowTarget Fair Value

R$5.5

66.2% overvalued

Future estimation in

Growth p.a.

Decrease

Increase

Current revenue growth rate

5.38%

General Merchandise and Department Stores revenue growth rate

0.41%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

26.10%

Calculation

R$570.38m

Earnings '28

14.26x

PE Ratio '28

R$8.13b

Market Cap '28

R$8.13b

Market Cap '28

742.62m

No. shares '28

R$10.95

Share Price '28

R$10.95 Share Price '28

Discounted to 2025 @ 25.84% p.a.

R$5.50

Fair Value '25