Localiza Rent a Car S.A.

BOVESPA:RENT3 Stock Report

Market Cap: R$36.9b

Localiza Rent a Car Valuation

Is RENT3 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 RENT3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RENT3 (R$34.82) is trading above our estimate of fair value (R$27.86)

Significantly Below Fair Value: RENT3 is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for RENT3?

Key metric: As RENT3 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RENT3. This is calculated by dividing RENT3's market cap by their current earnings.
What is RENT3's PE Ratio?
PE Ratio22x
EarningsR$1.68b
Market CapR$36.93b

Price to Earnings Ratio vs Peers

How does RENT3's PE Ratio compare to its peers?

The above table shows the PE ratio for RENT3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.8x
MRSA3B MRS Logística
6.6xn/aR$9.7b
13.6x18.4%R$21.6b
VAMO3 Vamos Locação de Caminhões Máquinas e Equipamentos
8.1x22.3%R$5.7b
STBP3 Santos Brasil Participações
14.7x12.2%R$11.2b
RENT3 Localiza Rent a Car
22x41.0%R$36.9b

Price-To-Earnings vs Peers: RENT3 is expensive based on its Price-To-Earnings Ratio (22x) compared to the peer average (10.8x).


Price to Earnings Ratio vs Industry

How does RENT3's PE Ratio compare vs other companies in the Global Transportation Industry?

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RENT3 22.0xIndustry Avg. 14.8xNo. of Companies40PE01224364860+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RENT3 is expensive based on its Price-To-Earnings Ratio (22x) compared to the Global Transportation industry average (14.8x).


Price to Earnings Ratio vs Fair Ratio

What is RENT3'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.

RENT3 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22x
Fair PE Ratio25.9x

Price-To-Earnings vs Fair Ratio: RENT3 is good value based on its Price-To-Earnings Ratio (22x) compared to the estimated Fair Price-To-Earnings Ratio (25.9x).


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 RENT3 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR$34.82
R$65.78
+88.9%
14.3%R$89.00R$52.00n/a13
Dec ’25R$37.58
R$65.47
+74.2%
14.2%R$89.00R$52.00n/a13
Nov ’25R$40.76
R$63.32
+55.3%
15.2%R$89.00R$52.00n/a13
Oct ’25R$41.10
R$63.35
+54.1%
14.9%R$89.00R$52.00n/a13
Sep ’25R$41.37
R$63.95
+54.6%
15.2%R$89.00R$52.00n/a13
Aug ’25R$43.76
R$66.62
+52.2%
15.0%R$89.00R$50.00n/a13
Jul ’25R$41.77
R$67.86
+62.5%
13.0%R$84.00R$50.00n/a12
Jun ’25R$42.73
R$72.39
+69.4%
15.2%R$90.00R$52.00n/a12
May ’25R$49.03
R$68.65
+40.0%
27.0%R$90.00R$17.00n/a11
Apr ’25R$52.65
R$75.56
+43.5%
11.2%R$90.00R$59.00n/a11
Mar ’25R$52.50
R$76.60
+45.9%
11.6%R$90.00R$58.00n/a11
Feb ’25R$54.48
R$79.88
+46.6%
10.1%R$90.00R$62.00n/a11
Jan ’25R$63.60
R$78.96
+24.2%
11.9%R$90.00R$55.44n/a11
Dec ’24R$60.74
R$78.98
+30.0%
11.9%R$90.00R$55.50R$37.5811
Nov ’24R$51.92
R$76.74
+47.8%
15.7%R$90.00R$51.94R$40.7612
Oct ’24R$58.56
R$75.98
+29.7%
14.9%R$90.00R$52.00R$41.1012
Sep ’24R$63.73
R$75.19
+18.0%
14.1%R$90.00R$53.00R$41.3712
Aug ’24R$67.50
R$74.52
+10.4%
15.6%R$90.00R$51.00R$43.7611
Jul ’24R$68.50
R$74.12
+8.2%
14.4%R$87.20R$51.00R$41.7712
Jun ’24R$65.53
R$73.54
+12.2%
13.0%R$85.00R$51.00R$42.7314
May ’24R$58.01
R$71.45
+23.2%
14.5%R$85.00R$42.00R$49.0316
Apr ’24R$53.40
R$72.72
+36.2%
12.5%R$85.00R$42.00R$52.6517
Mar ’24R$53.32
R$74.21
+39.2%
11.9%R$85.00R$45.00R$52.5016
Feb ’24R$58.53
R$74.55
+27.4%
12.0%R$85.00R$45.00R$54.4816
Jan ’24R$53.20
R$75.48
+41.9%
12.5%R$87.00R$45.00R$63.6016
Dec ’23R$58.04
R$76.16
+31.2%
11.0%R$87.00R$49.00R$60.7416

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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