StoneCo Ltd.

LSE:0A4H Stock Report

Market Cap: US$2.4b

StoneCo Valuation

Is 0A4H undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 0A4H when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0A4H ($8.26) is trading below our estimate of fair value ($20.94)

Significantly Below Fair Value: 0A4H is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0A4H?

Key metric: As 0A4H is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0A4H. This is calculated by dividing 0A4H's market cap by their current earnings.
What is 0A4H's PE Ratio?
PE Ratio7.2x
EarningsR$2.06b
Market CapR$14.81b

Price to Earnings Ratio vs Peers

How does 0A4H's PE Ratio compare to its peers?

The above table shows the PE ratio for 0A4H vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average38.5x
PAY PayPoint
13.5xn/aUK£542.6m
BOKU Boku
95x38.5%UK£545.5m
WISE Wise
24.5x-6.5%UK£10.6b
FNX Fonix
21.1x2.2%UK£223.9m
0A4H StoneCo
7.2x13.2%US$2.4b

Price-To-Earnings vs Peers: 0A4H is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (38.5x).

Price to Earnings Ratio vs Industry

How does 0A4H's PE Ratio compare vs other companies in the GB Diversified Financial Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
NBS Nationwide Building Society
1.2xn/aUS$1.51b
No more companies available in this PE range
0A4H 7.2xIndustry Avg. 14.1xNo. of Companies4PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0A4H is good value based on its Price-To-Earnings Ratio (7.2x) compared to the UK Diversified Financial industry average (14.1x).

Price to Earnings Ratio vs Fair Ratio

What is 0A4H'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.

0A4H PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio18.3x

Price-To-Earnings vs Fair Ratio: 0A4H is good value based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (18.3x).

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 0A4H forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$8.26
US$14.14
+71.1%
21.2%US$17.98US$6.13n/a17
Dec ’25US$9.48
US$15.92
+67.9%
20.1%US$19.93US$6.77n/a17
Nov ’25US$11.20
US$16.43
+46.7%
21.0%US$21.05US$6.88n/a17
Oct ’25US$11.10
US$17.24
+55.4%
20.4%US$21.98US$7.19n/a18
Sep ’25US$13.10
US$17.37
+32.6%
13.6%US$21.32US$13.56n/a18
Aug ’25US$12.83
US$17.08
+33.2%
14.3%US$21.83US$13.69n/a19
Jul ’25US$11.75
US$17.85
+51.9%
13.7%US$22.73US$14.04n/a18
Jun ’25US$13.68
US$20.00
+46.2%
12.3%US$24.90US$15.00n/a18
May ’25US$15.51
US$19.93
+28.5%
14.9%US$25.44US$14.59n/a17
Apr ’25US$16.62
US$19.11
+15.0%
18.7%US$24.64US$8.94n/a18
Mar ’25US$17.18
US$18.66
+8.6%
17.6%US$22.76US$8.90n/a18
Feb ’25US$17.75
US$18.92
+6.6%
17.4%US$23.03US$9.01n/a18
Jan ’25US$18.13
US$16.20
-10.6%
21.9%US$22.72US$8.99n/a17
Dec ’24US$16.37
US$15.97
-2.4%
22.5%US$22.80US$9.02US$9.4817
Nov ’24US$10.07
US$14.55
+44.5%
23.8%US$21.57US$9.05US$11.2017
Oct ’24US$10.58
US$15.03
+42.0%
20.4%US$21.51US$8.60US$11.1018
Sep ’24US$12.53
US$15.51
+23.8%
21.2%US$22.48US$8.86US$13.1019
Aug ’24US$14.64
US$15.03
+2.6%
19.7%US$20.28US$9.14US$12.8319
Jul ’24US$12.86
US$14.90
+15.9%
19.0%US$19.99US$9.29US$11.7519
Jun ’24US$13.20
US$15.21
+15.2%
45.3%US$42.82US$5.92US$13.6821
May ’24US$12.48
US$14.30
+14.6%
49.5%US$42.97US$6.32US$15.5120
Apr ’24US$9.61
US$14.02
+46.0%
48.3%US$41.50US$6.10US$16.6220
Mar ’24US$8.32
US$13.72
+65.0%
50.2%US$40.94US$6.27US$17.1819
Feb ’24US$11.08
US$14.03
+26.6%
50.3%US$41.86US$6.41US$17.7519
Jan ’24US$9.41
US$14.16
+50.5%
48.3%US$41.21US$6.31US$18.1319
Dec ’23US$11.71
US$14.18
+21.1%
50.3%US$41.29US$6.32US$16.3719

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 Analysis2024/12/22 13:16
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

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 here.

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 .

Analyst Sources

StoneCo Ltd. is covered by 29 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ishan MajumdarBaptista Research
John CoffeyBarclays
Mario Lucio PierryBofA Global Research