Locaweb Serviços de Internet S.A.

BOVESPA:LWSA3 Stock Report

Market Cap: R$2.2b

Locaweb Serviços de Internet Valuation

Is LWSA3 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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LWSA3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

R$3.52
Fair Value
15.4% overvalued intrinsic discount
10
Number of Analysts

Below Fair Value: LWSA3 (R$4.06) is trading above our estimate of fair value (R$3.52)

Significantly Below Fair Value: LWSA3 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LWSA3?

Key metric: As LWSA3 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LWSA3. This is calculated by dividing LWSA3's market cap by their current revenue.
What is LWSA3's PS Ratio?
PS Ratio1.5x
SalesR$1.47b
Market CapR$2.23b

Price to Sales Ratio vs Peers

How does LWSA3's PS Ratio compare to its peers?

The above table shows the PS ratio for LWSA3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.5x
6183 Trade-Van Information Services
5.3xn/aNT$14.4b
CMRC Commerce.com
1.1x4.71%US$357.6m
688030 Hillstone NetworksLtd
3.4xn/aCN¥3.5b
5036 Japan Business Systems
0.4x6.17%JP¥63.2b
LWSA3 Locaweb Serviços de Internet
1.5x10.35%R$2.2b

Price-To-Sales vs Peers: LWSA3 is good value based on its Price-To-Sales Ratio (1.5x) compared to the peer average (2.5x).

Price to Sales Ratio vs Industry

How does LWSA3's PS Ratio compare vs other companies in the Global IT Industry?

130 CompaniesPrice / SalesEstimated GrowthMarket Cap
LWSA3 1.5xIndustry Avg. 1.5xNo. of Companies205PS01.63.24.86.48+
130 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LWSA3 is good value based on its Price-To-Sales Ratio (1.5x) compared to the Global IT industry average (1.5x).

Price to Sales Ratio vs Fair Ratio

What is LWSA3's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LWSA3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: LWSA3 is expensive based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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 LWSA3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$4.06
R$5.54
+36.45%
20.05%R$7.50R$4.50n/a10
Nov ’26R$3.91
R$5.54
+41.69%
20.05%R$7.50R$4.50n/a10
Oct ’26R$4.30
R$5.50
+27.91%
20.98%R$7.50R$4.10n/a10
Sep ’26R$4.14
R$5.50
+32.85%
20.98%R$7.50R$4.10n/a10
Aug ’26R$3.95
R$5.64
+42.69%
18.49%R$7.30R$4.10n/a11
Jul ’26R$3.77
R$5.57
+47.82%
19.51%R$7.30R$4.10n/a11
Jun ’26R$3.76
R$5.85
+55.59%
20.06%R$7.20R$4.10n/a10
May ’26R$3.61
R$6.06
+67.87%
16.32%R$7.20R$4.50n/a10
Apr ’26R$2.71
R$6.06
+123.62%
16.32%R$7.20R$4.50n/a10
Mar ’26R$2.74
R$6.11
+122.99%
15.22%R$7.20R$4.50n/a10
Feb ’26R$3.36
R$6.00
+78.57%
15.88%R$7.20R$4.50n/a11
Jan ’26R$3.32
R$6.05
+82.09%
14.72%R$7.20R$4.90n/a11
Dec ’25R$3.74
R$6.36
+70.15%
14.78%R$8.00R$4.90n/a11
Nov ’25R$4.09
R$6.55
+60.04%
12.62%R$8.00R$5.00R$3.9111
Oct ’25R$4.16
R$6.55
+57.56%
12.47%R$8.00R$5.00R$4.3011
Sep ’25R$4.55
R$6.55
+44.06%
12.47%R$8.00R$5.00R$4.1411
Aug ’25R$4.27
R$6.60
+54.57%
13.78%R$8.00R$5.00R$3.9511
Jul ’25R$3.99
R$7.21
+80.70%
19.69%R$10.00R$5.00R$3.7710
Jun ’25R$4.33
R$7.41
+71.13%
20.43%R$10.00R$5.00R$3.7610
May ’25R$4.60
R$7.58
+64.78%
19.45%R$10.00R$5.00R$3.6110
Apr ’25R$5.47
R$8.08
+47.71%
20.12%R$11.00R$5.00R$2.7110
Mar ’25R$5.75
R$8.08
+40.52%
20.12%R$11.00R$5.00R$2.7410
Feb ’25R$5.56
R$8.07
+45.14%
20.11%R$11.00R$5.00R$3.3610
Jan ’25R$6.01
R$8.27
+37.60%
23.15%R$11.00R$5.00R$3.3210
Dec ’24R$6.16
R$8.47
+37.50%
21.51%R$11.00R$5.00R$3.7410
Nov ’24R$6.00
R$9.42
+57.00%
35.76%R$18.00R$5.00R$4.0910
R$5.54
Fair Value
26.7% undervalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/11/24 18:31
End of Day Share Price 2025/11/21 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Locaweb Serviços de Internet S.A. is covered by 15 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Lucca BrendimBofA Global Research
Daniel FederleBradesco S.A. Corretora de Títulos e Valores Mobiliários
Otavio TanganelliBradesco S.A. Corretora de Títulos e Valores Mobiliários