* Note: Prices are in Million (M) USD.
Description:
PagSeguro Digital Ltd., provides financial technology solutions and services for consumers, individual entrepreneurs, micro-merchants, and small and medium-sized companies in Brazil and internationally. The company is headquartered in So Paulo, Brazil.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $928 M
Debt : $4,679 M
EBITDA : $7,946 M
Net Debt (Debt - Cash): $3,751 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Financials
Industry: Software - Infrastructure
Based on industry, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 0.97
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $-356 M
Average Revenue: $7,312 M
Revenue Converted To Free Cash FLow(%): -5%
Since Free Cash Flow (FCF) to Revenue percentage is negative, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $18,334 M
Revenue 4 Years Ago (2020-12-31): $6,686 M
Last 5 Years Average Revenue Growth: 35%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $320 M
Share Count 5 Years Ago (2020-12-31): $330 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $8.83
Trailing 12-Month Earnings Per Share (EPS): $8.08
Average Earnings Per Share (EPS): $8.46
Dividend Per Share (DPS): $1
Payout Ratio: 10%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 17%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $8
52-Week Low: $6
Threshold Price (15% Above 52-Week Low): $7
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $2,437 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 28 points to above PagSeguro Digital Ltd (PAGS) stock.
Last 7 Years Avg PE (Limited to last 7 years of EPS data) 6, Fair Value PE 25, Industry Based PE is 30 and Growth based PE is 17. Based on these all values average assigned is 19.50.
Value-Trades has assined P/E value 19.50. Since an average (Current Year EPS + Next Year EPS) earning per share is $8.455.
The fair value of PagSeguro Digital Ltd (PAGS) stock should be (19.50 x $8.455) = $164.87
