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 Ratio6.6x
EarningsR$2.01b
Market CapR$13.19b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.7x
EVTC EVERTEC
27.2x17.1%US$2.3b
SEZL Sezzle
32x16.5%US$1.8b
PLX Pluxee
21.9x19.8%€3.0b
ALANSARI Al Ansari Financial Services PJSC
17.7x20.3%د.إ7.4b
PAGS PagSeguro Digital
6.6x9.3%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 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PAGS 6.6xIndustry Avg. 8.1xNo. of Companies4PE0612182430+
2 CompaniesEstimated GrowthMarket 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 Ratio6.6x
Fair PE Ration/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.


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