DLocal Limited (DLO)
Technology · NMS · US
Fundamentals
Valuation and ratings
DLocal Limited trades at USD14.59, which is 59% above the USD5.96 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 66 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 23.3 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About DLocal Limited
DLocal Limited, together with its subsidiaries, provides payment processing services worldwide. The company offers a robust pay-in solution to help global merchants expand their online presence and receive payments, including international and local cards, online bank transfers, direct debit, cash, and hundreds of alternative payment methods (APMs). It also provides pay-in solutions for cross-border and local-to-local transactions, as well as pay-out solutions. In addition, the company offers dLocal for Platforms to manage global platform payments. It serves its products to commerce, streaming, ride-hailing, financial services, remittances, advertising, SaaS, travel, e-learning, on-demand delivery, gaming, and crypto industries. The company was founded in 2016 and is headquartered in Montevideo, Uruguay.
DLO passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is DLocal Limited (DLO) undervalued?
Against our discounted cash flow estimate of USD5.96, DLO at USD14.59 is 59% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is DLO's P/E ratio?
DLO trades at 23.3 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.