STNE Valuation

StoneCo Ltd

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12.950

-0.175(-1.333%)1D

Overview
Forecast
Valuation
Earnings

STNE Relative Valuation

STNE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, STNE is overvalued; if below, it's undervalued.

Historical Valuation

StoneCo Ltd (STNE) is now in the Undervalued zone, suggesting that its current forward PS ratio of 1.27 is considered Undervalued compared with the five-year average of 57.75. The fair price of StoneCo Ltd (STNE) is between 13.41 to 16.24 according to relative valuation methord. Compared to the current price of 12.99 USD , StoneCo Ltd is Undervalued By 3.12%.

Relative Value

Fair Zone

13.41-16.24

Current Price：12.99

3.12%

Undervalued

7.74

Trailing

Forward

3.12

EV/EBITDA

StoneCo Ltd. (STNE) has a current EV/EBITDA of 3.12. The 5-year average EV/EBITDA is 14.43. The thresholds are as follows: Strongly Undervalued below -31.41, Undervalued between -31.41 and -8.49, Fairly Valued between 37.35 and -8.49, Overvalued between 37.35 and 60.27, and Strongly Overvalued above 60.27. The current Forward EV/EBITDA of 3.12 falls within the Historic Trend Line -Fairly Valued range.

3.55

EV/EBIT

StoneCo Ltd. (STNE) has a current EV/EBIT of 3.55. The 5-year average EV/EBIT is 19.38. The thresholds are as follows: Strongly Undervalued below -55.72, Undervalued between -55.72 and -18.17, Fairly Valued between 56.93 and -18.17, Overvalued between 56.93 and 94.48, and Strongly Overvalued above 94.48. The current Forward EV/EBIT of 3.55 falls within the Historic Trend Line -Fairly Valued range.

1.26

StoneCo Ltd. (STNE) has a current PS of 1.26. The 5-year average PS is 6.27. The thresholds are as follows: Strongly Undervalued below -10.86, Undervalued between -10.86 and -2.29, Fairly Valued between 14.83 and -2.29, Overvalued between 14.83 and 23.40, and Strongly Overvalued above 23.40. The current Forward PS of 1.26 falls within the Historic Trend Line -Fairly Valued range.

5.70

P/OCF

StoneCo Ltd. (STNE) has a current P/OCF of 5.70. The 5-year average P/OCF is 26.12. The thresholds are as follows: Strongly Undervalued below -82.87, Undervalued between -82.87 and -28.37, Fairly Valued between 80.62 and -28.37, Overvalued between 80.62 and 135.11, and Strongly Overvalued above 135.11. The current Forward P/OCF of 5.70 falls within the Historic Trend Line -Fairly Valued range.

9.43

P/FCF

StoneCo Ltd. (STNE) has a current P/FCF of 9.43. The 5-year average P/FCF is 378.22. The thresholds are as follows: Strongly Undervalued below -3044.70, Undervalued between -3044.70 and -1333.24, Fairly Valued between 2089.69 and -1333.24, Overvalued between 2089.69 and 3801.15, and Strongly Overvalued above 3801.15. The current Forward P/FCF of 9.43 falls within the Historic Trend Line -Fairly Valued range.

StoneCo Ltd (STNE) has a current Price-to-Book (P/B) ratio of 1.75. Compared to its 3-year average P/B ratio of 1.43 , the current P/B ratio is approximately 21.97% higher. Relative to its 5-year average P/B ratio of 3.04, the current P/B ratio is about -42.50% higher. StoneCo Ltd (STNE) has a Forward Free Cash Flow (FCF) yield of approximately -7.55%. Compared to its 3-year average FCF yield of -3.30%, the current FCF yield is approximately 128.51% lower. Relative to its 5-year average FCF yield of 0.43% , the current FCF yield is about -1842.22% lower.

1.72

P/B

Median3y

1.43

Median5y

3.04

-7.62

FCF Yield

Median3y

-3.30

Median5y

0.43

Competitors Valuation Multiple

The average P/S ratio for STNE's competitors is 1.56, providing a benchmark for relative valuation. StoneCo Ltd Corp (STNE) exhibits a P/S ratio of 1.26, which is -18.98% above the industry average. Given its robust revenue growth of 18.96%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Paymentus Holdings Inc

Laureate Education Inc

Performance Decomposition

Market capitalization of STNE increased by 0.04% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 3.08B to 3.67B.

The secondary factor is the Margin Expansion, contributed 16.27%to the performance.

Overall, the performance of STNE in the past 1 year is driven by Revenue Growth. Which is more sustainable.

18.96%

3.08B → 3.67B

Revenue Growth

16.27%

12.11 → 14.08

Margin Expansion

-35.19%

-23.84 → -15.45

P/E Change

0.04%