Update shared on 12 Dec 2025
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.
- Discount Rate: reduced modestly from 27.02% to 25.84%, reflecting a slightly lower perceived risk profile and cost of capital.
- Revenue Growth: increased slightly from 3.70% to 3.93%, pointing to a marginally more optimistic top line outlook.
- Net Profit Margin: lowered significantly from 1.96% to 1.33%, signalling expectations of weaker profitability going forward.
- Future P/E: raised meaningfully from 9.95x to 14.26x, implying a higher valuation multiple applied to projected earnings.
Have other thoughts on Magazine Luiza?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystLowTarget 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 AnalystLowTarget 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 AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.