StoneCo Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: STNE ($15.83) is trading below our estimate of fair value ($26.83)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

STNE 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/Revenue2.2x
Enterprise Value/EBITDA4.3x
PEG Ratio0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for STNE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average25.2x
FOUR Shift4 Payments
44.1x33.6%US$5.3b
DLO DLocal
28x24.8%US$4.2b
PAGS PagSeguro Digital
11.5x15.3%US$3.7b
EEFT Euronet Worldwide
17.3x13.1%US$4.9b
STNE StoneCo
15.8x18.7%US$4.9b

Price-To-Earnings vs Peers: STNE is good value based on its Price-To-Earnings Ratio (15.8x) compared to the peer average (25.2x).


Price to Earnings Ratio vs Industry

How does STNE's PE Ratio compare vs other companies in the US Diversified Financial Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: STNE is expensive based on its Price-To-Earnings Ratio (15.8x) compared to the US Diversified Financial industry average (14.3x).


Price to Earnings Ratio vs Fair Ratio

What is STNE'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.

STNE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.8x
Fair PE Ratio18.5x

Price-To-Earnings vs Fair Ratio: STNE is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (18.5x).


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 STNE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$15.83
US$18.74
+18.4%
24.5%US$25.18US$3.53n/a18
Apr ’25US$16.32
US$19.11
+17.1%
18.7%US$24.64US$8.94n/a18
Mar ’25US$17.12
US$18.66
+9.0%
17.6%US$22.76US$8.90n/a18
Feb ’25US$17.88
US$18.91
+5.7%
17.4%US$23.03US$9.01n/a18
Jan ’25US$18.03
US$16.20
-10.1%
21.9%US$22.72US$8.99n/a17
Dec ’24US$16.40
US$15.97
-2.6%
22.5%US$22.80US$9.02n/a17
Nov ’24US$10.16
US$14.55
+43.3%
23.8%US$21.57US$9.05n/a17
Oct ’24US$10.67
US$15.03
+40.9%
20.4%US$21.51US$8.60n/a18
Sep ’24US$12.54
US$15.51
+23.7%
21.2%US$22.48US$8.86n/a19
Aug ’24US$14.65
US$15.03
+2.6%
19.7%US$20.28US$9.14n/a19
Jul ’24US$12.74
US$14.90
+16.9%
19.0%US$19.99US$9.29n/a19
Jun ’24US$13.11
US$15.21
+16.0%
45.3%US$42.82US$5.92n/a21
May ’24US$12.44
US$14.30
+14.9%
49.5%US$42.97US$6.32n/a20
Apr ’24US$9.54
US$14.02
+47.0%
48.3%US$41.50US$6.10US$16.3220
Mar ’24US$8.40
US$13.72
+63.3%
50.2%US$40.94US$6.27US$17.1219
Feb ’24US$11.35
US$14.03
+23.6%
50.3%US$41.86US$6.41US$17.8819
Jan ’24US$9.44
US$14.16
+50.0%
48.3%US$41.21US$6.31US$18.0319
Dec ’23US$11.75
US$14.18
+20.7%
50.3%US$41.29US$6.32US$16.4019
Nov ’23US$11.01
US$12.85
+16.7%
53.5%US$39.27US$5.86US$10.1619
Oct ’23US$9.53
US$12.52
+31.4%
54.6%US$38.73US$5.78US$10.6719
Sep ’23US$9.19
US$13.19
+43.5%
52.9%US$40.05US$5.98US$12.5419
Aug ’23US$9.42
US$13.74
+45.9%
48.1%US$37.44US$5.73US$14.6519
Jul ’23US$7.77
US$14.22
+83.0%
49.1%US$37.65US$5.76US$12.7419
Jun ’23US$9.72
US$17.55
+80.6%
44.2%US$41.70US$10.08US$13.1119
May ’23US$9.42
US$18.49
+96.3%
43.4%US$41.69US$10.08US$12.4419
Apr ’23US$12.14
US$20.59
+69.6%
38.6%US$41.88US$10.12US$9.5417

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


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