PagSeguro Digital Valuation

Is PAGS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PAGS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PAGS (ARS2650) is trading above our estimate of fair value (ARS2199.62)

Significantly Below Fair Value: PAGS is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PAGS?

Key metric: As PAGS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PAGS. This is calculated by dividing PAGS's market cap by their current earnings.
What is PAGS's PE Ratio?
PE Ratio	6.6x
Earnings	R$2.01b
Market Cap	R$13.19b

PAGS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	2.2x
PEG Ratio	0.7x

Price to Earnings Ratio vs Peers

How does PAGS's PE Ratio compare to its peers?

The above table shows the PE ratio for PAGS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	24.7x
EVTC EVERTEC	27.2x	17.1%	US$2.3b
SEZL Sezzle	32x	16.5%	US$1.8b
PLX Pluxee	21.9x	19.8%	€3.0b
ALANSARI Al Ansari Financial Services PJSC	17.7x	20.3%	د.إ7.4b
PAGS PagSeguro Digital	6.6x	9.3%	AR$2.2b

Price-To-Earnings vs Peers: PAGS is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (24.8x).

Price to Earnings Ratio vs Industry

How does PAGS's PE Ratio compare vs other companies in the South American Diversified Financial Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: PAGS is good value based on its Price-To-Earnings Ratio (6.6x) compared to the South American Diversified Financial industry average (8.1x).

Price to Earnings Ratio vs Fair Ratio

What is PAGS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PAGS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate PAGS's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.