Direcional Engenharia S.A.

BOVESPA:DIRR3 Stock Report

Market Cap: R$4.4b

Direcional Engenharia Valuation

Is DIRR3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 DIRR3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DIRR3 (R$25.63) is trading above our estimate of fair value (R$9.62)

Significantly Below Fair Value: DIRR3 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for DIRR3?

Other financial metrics that can be useful for relative valuation.

DIRR3 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/Revenue2x
Enterprise Value/EBITDA11x
PEG Ratio0.4x

Price to Earnings Ratio vs Peers

How does DIRR3's PE Ratio compare to its peers?

The above table shows the PE ratio for DIRR3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.8x
EZTC3 EZTEC Empreendimentos e Participações
14.8x28.2%R$3.6b
CURY3 Cury Construtora e Incorporadora
12.3x19.5%R$5.9b
PLPL3 Plano & Plano Desenvolvimento Imobiliário
10.3x16.4%R$2.8b
CYRE3 Cyrela Brazil Realty Empreendimentos e Participações
9.9x16.5%R$9.4b
DIRR3 Direcional Engenharia
13.3x31.0%R$4.4b

Price-To-Earnings vs Peers: DIRR3 is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the peer average (11.8x).


Price to Earnings Ratio vs Industry

How does DIRR3's PE Ratio compare vs other companies in the South American Consumer Durables Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a31.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: DIRR3 is expensive based on its Price-To-Earnings Ratio (13.3x) compared to the South American Consumer Durables industry average (12x).


Price to Earnings Ratio vs Fair Ratio

What is DIRR3'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.

DIRR3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.3x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: DIRR3 is good value based on its Price-To-Earnings Ratio (13.3x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).


Analyst Price Targets

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

The above table shows the analyst DIRR3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$25.63
R$28.48
+11.1%
5.5%R$31.00R$26.00n/a11
Mar ’25R$23.80
R$28.30
+18.9%
6.1%R$31.00R$26.00n/a11
Feb ’25R$22.18
R$27.66
+24.7%
7.9%R$31.00R$25.00n/a11
Jan ’25R$22.39
R$27.12
+21.1%
9.3%R$31.00R$22.00n/a11
Dec ’24R$20.46
R$26.57
+29.9%
9.8%R$31.00R$22.00n/a11
Nov ’24R$17.66
R$26.18
+48.3%
10.8%R$31.00R$22.00n/a11
Oct ’24R$19.18
R$25.10
+30.9%
13.6%R$31.00R$20.00n/a11
Sep ’24R$20.82
R$24.84
+19.3%
13.6%R$31.00R$20.00n/a12
Aug ’24R$21.39
R$22.76
+6.4%
9.6%R$27.00R$20.00n/a12
Jul ’24R$19.65
R$21.05
+7.1%
7.8%R$24.00R$18.00n/a11
Jun ’24R$17.84
R$20.78
+16.5%
10.3%R$24.00R$16.00n/a11
May ’24R$15.70
R$20.50
+30.6%
10.3%R$24.00R$16.00n/a12
Apr ’24R$15.98
R$20.50
+28.3%
10.3%R$24.00R$16.00n/a12
Mar ’24R$14.85
R$20.15
+35.7%
11.9%R$24.00R$15.50R$23.8011
Feb ’24R$15.68
R$20.25
+29.1%
12.0%R$24.00R$15.50R$22.1811
Jan ’24R$15.64
R$19.65
+25.7%
12.4%R$23.00R$14.00R$22.3911
Dec ’23R$14.21
R$19.47
+37.0%
12.7%R$23.00R$14.00R$20.4611
Nov ’23R$17.42
R$18.57
+6.6%
18.0%R$23.00R$13.00R$17.6611
Oct ’23R$16.85
R$16.80
-0.3%
16.3%R$21.00R$13.00R$19.1811
Sep ’23R$13.50
R$15.89
+17.7%
13.4%R$19.00R$13.00R$20.8211
Aug ’23R$11.72
R$15.88
+35.5%
12.2%R$19.00R$13.00R$21.3910
Jul ’23R$10.90
R$16.59
+52.2%
17.4%R$20.90R$11.00R$19.659
Jun ’23R$10.95
R$17.14
+56.6%
14.7%R$20.90R$13.00R$17.849
May ’23R$11.50
R$17.14
+49.1%
14.7%R$20.90R$13.00R$15.709
Apr ’23R$12.61
R$17.33
+37.4%
14.1%R$20.90R$13.00R$15.9810
Mar ’23R$12.17
R$17.82
+46.4%
15.7%R$22.70R$13.00R$14.8511

Analyst Forecast: Target price is less than 20% higher than the current share price.


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