DLO Share Price Performance
US$14.41
3.75 (35.26%)
35.9% undervalued intrinsic discount
US$22.49
Fair Value
Price US$14.41
cracken25 US$22.49
AnalystConsensusTarget US$18.05
J_Tyrader US$50.96
Fair ValueUS$22.49
Share Pricen/a
Seeking Alpha • Aug 07
DLocal Limited Stock Price
- 6 Narratives written by author
- 2 Comments on narratives written by author
- 261 Fair Values set on narratives written by author
DLO Community Narratives
CR
Fair Value
·Fair Value US$22.49 35.9% undervalued intrinsic discount
DLocal's Future Looks Bright with 29x Future PE
2users have liked this narrative
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14users have followed this narrative
AN
Fair Value
·Fair Value US$18.05 20.2% undervalued intrinsic discount
Confidence Will Strengthen As Digital Payment Momentum Grows In Emerging Markets
2users have liked this narrative
1users have commented on this narrative
85users have followed this narrative
J_
Fair Value
·Fair Value US$50.96 71.7% undervalued intrinsic discount
5/8/26 — DLocal: trading 70% below a 9.8%-discounted fair value, with the cash flow to defend it
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5/8/26 — DLocal: trading 70% below a 9.8%-discounted fair value, with the cash flow to defend it
DLocal looks priced as if its growth is about to cool sharply, even though it turns a large share of sales into cash and sits on a strong cash cushion. The big question is whether that growth can hold up, because the upside case depends heavily on what happens over the next several years.Read more
J_
US$50.96
71.7% undervalued intrinsic discount
Fair Value
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INTRINSIC VALUE (DCF) CALCULATION BREAKDOWN — NASDAQ:DLO
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Target Fair Value: USD 50.96
Current Stock Price: USD 15.24
Market Assessment: 70.1% Undervalued / +234.2% Upside Potential
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1. MARKET METRICS RECONCILIATION
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* Undervaluation Formula:
(Fair Value - Current Price) / Fair Value
(50.96 - 15.24) / 50.96 = 0.7008 -> 70.1%
* Upside Potential Formula:
(Fair Value - Current Price) / Current Price
(50.96 - 15.24) / 15.24 = 2.3425 -> +234.2%
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2. DISCOUNT RATE / COST OF EQUITY (CAPM)
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* Formula: Risk-Free Rate + (Beta * Equity Risk Premium)
* Inputs: Risk-Free Rate = 4.25%
Beta = 1.10
ERP = 5.00%
* Calculation:
4.25% + (1.10 * 5.00%) = 4.25% + 5.50% = 9.75% (Rounded to 9.8%)
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3. 10-YEAR CASH FLOW FORECAST ARCHITECTURE
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* Base Year Free Cash Flow (FCF0): USD 437.59M (USD 1.4837 per share)
* Shares Outstanding: 294.93m (Market Cap 4.50B / Price 15.24)
* FCF Margin: 40.0%
* Growth Rate Fading Schedule:
- Year 1: +25.00% FCF USD 546.99M
- Years 2-10: Linear reduction from +25.00% down to +2.50%
- Year 10: +2.50% FCF USD 1.56B
- Year 11+: +2.50% (Terminal Perpetual Growth Rate)
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4. MATHEMATICAL STEPS TO INTRINSIC VALUE
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* Step A: Present Value of Discrete Cash Flows (Years 1 to 10)
PV_Cash_Flows = Sum [ FCF_t / (1 + 0.0975)^t ] for t = 1 to 10
PV_Cash_Flows = USD 6.35B
* Step B: Terminal Value (Gordon Growth Model at Year 10)
TV_10 = [ FCF_10 * (1 + 0.0250) ] / (0.0975 - 0.0250)
TV_10 = [ 1.56B * 1.0250 ] / 0.0725 = USD 21.99B
* Step C: Discount the Terminal Value to Present Day
PV_TV = 21.99B / (1 + 0.0975)^10 = 21.99B / 2.5354
PV_TV = USD 8.67B
* Step D: Equity Value and Fair Value per Share
Equity Value = 6.35B + 8.67B = USD 15.03B
Fair Value = 15.03B / 294.93m = USD 50.96
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5. FUTURE P/E MULTIPLE BLENDED BENCHMARK
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* Formula: Sum of (Multiple * Re-normalized Weight)
* Inputs: Forward Multiple: 17.1x @ 45% Weight
Peer Median (n=31): 20.2x @ 35% Weight
Current Multiple: 22.7x @ 20% Weight
* Calculation:
(17.1 * 0.45) + (20.2 * 0.35) + (22.7 * 0.20)
= 7.684 + 7.077 + 4.540
= 19.301x (Rounded to 19.3x)
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6. SENSITIVITY OF THE FAIR VALUE
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* Growth +22.0% -> 45.47 | +25.0% -> 50.96 | +28.0% -> 50.96
* Discount 8.75% -> 60.09 | 9.75% -> 50.96 | 10.75% -> 44.07
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DLocal's Future Looks Bright with 29x Future PE
The trading narrative for dLocal (DLO), based on the DCF Valuation - HatedMoats article, is that the stock is significantly undervalued. Key Trading Narrative Points: Verdict: Undervalued.Read more
CR
US$22.49
35.9% undervalued intrinsic discount
Fair Value
Revenue
22.65% p.a.
Profit Margin
16.9%
Future PE
29.27x
Price in 2030
US$34.82
DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts
DLocal is pushing hard to grow by rolling out new payment options, entering more countries, and building tools that help big merchants move money in and out of fast-changing emerging markets. The same plan carries real execution risk: delays, third-party dependencies, and any hit to trust could quickly make its platform less attractive.Read more
WY
US$195.39
92.6% undervalued intrinsic discount
Fair Value
Revenue
35% p.a.
Profit Margin
35%
Future PE
25x
Price in 2035
US$506.8
Confidence Will Strengthen As Digital Payment Momentum Grows In Emerging Markets
dLocal is pushing beyond its early strongholds by adding new ways to pay and signing more merchants across more countries, aiming to ride the shift from cash to digital payments in emerging markets. The upside is steadier growth and better efficiency as it scales, but reliance on a handful of big clients, tougher rules, and fast-moving payment tech could still derail the story.Read more
AN
US$18.05
20.2% undervalued intrinsic discount
Fair Value
Revenue
27.57% p.a.
Profit Margin
16.79%
Future PE
16.02x
Price in 2029
US$23.13
Rising Tariffs And Digital Currencies Will Disrupt Global E-Commerce
DLocal sits in the middle of cross-border online shopping, but rising trade barriers, tougher rules, and government-backed digital money could make those payments slower, pricier, or bypass it altogether. At the same time, new products, tighter cost control, and stronger leadership could keep the business growing—if big clients and bigger rivals don’t squeeze it first.Read more
AN
US$14.5
0.7% undervalued intrinsic discount
Fair Value
Revenue
19.28% p.a.
Profit Margin
18.09%
Future PE
14.65x
Price in 2029
US$18.63
Cross-border E-commerce And Localized Payments Will Fuel Global Digital Commerce
Key Takeaways DLocal's expanding client base, unique payment aggregation, and entry into new channels position it for outsized, persistent growth far exceeding consensus expectations. Advanced AI integration, a lean model, and strategic fintech partnerships create structural margin advantages and a strong moat for long-term earnings power.Read more
AN
US$21
31.4% undervalued intrinsic discount
Fair Value
Revenue
34.8% p.a.
Profit Margin
18.2%
Future PE
18.01x
Price in 2029
US$27.03
Trending Discussion
No trending discussion available.
Recently Updated Narratives
J_
5/8/26 — DLocal: trading 70% below a 9.8%-discounted fair value, with the cash flow to defend it
Fair Value: US$50.96 71.7% undervalued intrinsic discount
1 fair value setusers have set this as their fair value
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
CR
DLocal's Future Looks Bright with 29x Future PE
Fair Value: US$22.49 35.9% undervalued intrinsic discount
14 fair values setusers have set this as their fair value
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
WY
DLocal's Future Growth Fueled by 35% Revenue and Profit Margin Boosts
Fair Value: US$195.39 92.6% undervalued intrinsic discount
27 fair values setusers have set this as their fair value
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
Snowflake Analysis
DLocal Limited Key Details
Last Reported Earnings
Mar 31, 2026
Next Reporting Earnings
Aug 13, 2026
- 0.65
- 36.00%
- 15.84%
- 19.3%
About DLO
- Founded
- 2016
- Employees
- 1274
- CEO
- WebsiteView website
DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a robust pay-in solution to help global merchants expand their online presence and receive payments, including international and local cards, online bank transfers, direct debit, cash, and hundreds of alternative payment methods (APMs). It also provides pay-in solutions for cross-border and local-to-local transactions, as well as pay-out solutions. In addition, the company offers dLocal for Platforms to manage global platform payments. It serves its products to commerce, streaming, ride-hailing, financial services, remittances, advertising, SaaS, travel, e-learning, on-demand delivery, gaming, and crypto industries. The company was founded in 2016 and is headquartered in Montevideo, Uruguay.
Recent DLO News & Updates
New Narrative • Aug 05
