PagSeguro Digital (NYSE:PAGS): Revisiting Valuation After a Strong Multi‑Month Share Price Rally

PagSeguro Digital (NYSE:PAGS) has been quietly climbing, with the stock up about 14% over the past month and roughly 20% in the past 3 months, catching more investors' attention.

See our latest analysis for PagSeguro Digital.

That recent strength builds on a much longer upswing, with the share price now at $10.93 and a strong year to date share price return suggesting momentum is clearly building despite a tough five year total shareholder return.

If PagSeguro Digital has sparked your interest in fast growing, high conviction ideas, this could be a good moment to discover fast growing stocks with high insider ownership.

But after a 70% year to date rally and with shares still trading at roughly a 40% discount to some intrinsic value estimates, is PagSeguro Digital a mispriced growth story, or is the market already baking in its next leg higher?

Most Popular Narrative Narrative: 2.5% Undervalued

Against a last close of $10.93, the most followed narrative points to a fair value near $11.21, suggesting only modest upside has been priced in.

Expectations for a compound annual growth rate of more than 10% in gross profit and over 16% in earnings per share through 2029 have been cited as compelling upside drivers.

Read the complete narrative.

Curious how steady double digit profit growth and rising earnings per share can still align with a cautious valuation outlook? Unpack the projections behind this fair value call.

Result: Fair Value of $11.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, that upside case still hinges on Brazil’s rate path and competitive pressure from PIX, both of which could squeeze margins and slow growth.

Find out about the key risks to this PagSeguro Digital narrative.

Build Your Own PagSeguro Digital Narrative

If you view the story differently or want to dive into the numbers yourself, you can build a personalized view in minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding PagSeguro Digital.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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