STNE PE Ratio & Valuation,Is STNE Overvalued

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 1.38 is considered Undervalued compared with the five-year average of 49.27. The fair price of StoneCo Ltd (STNE) is between 15.17 to 18.82 according to relative valuation methord. Compared to the current price of 14.07 USD , StoneCo Ltd is Undervalued By 7.27%.

Relative Value

Fair Zone

15.17-18.82

Current Price：14.07

7.27%

Undervalued

7.89

3.67

EV/EBITDA

StoneCo Ltd. (STNE) has a current EV/EBITDA of 3.67. The 5-year average EV/EBITDA is 11.10. The thresholds are as follows: Strongly Undervalued below -31.11, Undervalued between -31.11 and -10.00, Fairly Valued between 32.21 and -10.00, Overvalued between 32.21 and 53.31, and Strongly Overvalued above 53.31. The current Forward EV/EBITDA of 3.67 falls within the Historic Trend Line -Fairly Valued range.

3.95

EV/EBIT

StoneCo Ltd. (STNE) has a current EV/EBIT of 3.95. The 5-year average EV/EBIT is 15.41. The thresholds are as follows: Strongly Undervalued below -55.95, Undervalued between -55.95 and -20.27, Fairly Valued between 51.09 and -20.27, Overvalued between 51.09 and 86.76, and Strongly Overvalued above 86.76. The current Forward EV/EBIT of 3.95 falls within the Historic Trend Line -Fairly Valued range.

1.38

StoneCo Ltd. (STNE) has a current PS of 1.38. The 5-year average PS is 4.37. The thresholds are as follows: Strongly Undervalued below -9.23, Undervalued between -9.23 and -2.43, Fairly Valued between 11.17 and -2.43, Overvalued between 11.17 and 17.97, and Strongly Overvalued above 17.97. The current Forward PS of 1.38 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

StoneCo Ltd. (STNE) has a current P/OCF of 0.00. The 5-year average P/OCF is 22.38. The thresholds are as follows: Strongly Undervalued below -86.96, Undervalued between -86.96 and -32.29, Fairly Valued between 77.05 and -32.29, Overvalued between 77.05 and 131.73, and Strongly Overvalued above 131.73. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

StoneCo Ltd. (STNE) has a current P/FCF of 0.00. The 5-year average P/FCF is -16.71. The thresholds are as follows: Strongly Undervalued below -140.44, Undervalued between -140.44 and -78.57, Fairly Valued between 45.16 and -78.57, Overvalued between 45.16 and 107.03, and Strongly Overvalued above 107.03. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

StoneCo Ltd (STNE) has a current Price-to-Book (P/B) ratio of 1.78. Compared to its 3-year average P/B ratio of 1.53 , the current P/B ratio is approximately 15.97% higher. Relative to its 5-year average P/B ratio of 2.38, the current P/B ratio is about -25.30% higher. StoneCo Ltd (STNE) has a Forward Free Cash Flow (FCF) yield of approximately -6.26%. Compared to its 3-year average FCF yield of -5.53%, the current FCF yield is approximately 13.15% lower. Relative to its 5-year average FCF yield of 0.16% , the current FCF yield is about -3949.70% lower.

1.78

P/B

Median3y

1.53

Median5y

2.38

-6.26

FCF Yield

Median3y

-5.53

Median5y

0.16

Competitors Valuation Multiple

The average P/S ratio for STNE's competitors is 2.44, providing a benchmark for relative valuation. StoneCo Ltd Corp (STNE) exhibits a P/S ratio of 1.38, which is -43.49% above the industry average. Given its robust revenue growth of 20.23%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of STNE increased by 53.44% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -13.99 to -18.94.

The secondary factor is the Revenue Growth, contributed 20.23%to the performance.

Overall, the performance of STNE in the past 1 year is driven by P/E Change. Which is more unsustainable.

20.23%

2.91B → 3.50B

Revenue Growth

-2.22%

17.15 → 16.77

Margin Expansion

35.43%

-13.99 → -18.94

P/E Change

53.44%

9.17 → 14.07

Mkt Cap Growth

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Frequently Asked Questions

Is StoneCo Ltd (STNE) currently overvalued or undervalued?

What is StoneCo Ltd (STNE) fair value?

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. The fair price of StoneCo Ltd (STNE) is between 15.17 to 18.82 according to relative valuation methord.

How does STNE's valuation metrics compare to the industry average?

What is the current P/B ratio for StoneCo Ltd (STNE) as of Jan 08 2026?

As of Jan 08 2026, StoneCo Ltd (STNE) has a P/B ratio of 1.78. This indicates that the market values STNE at 1.78 times its book value.

What is the current FCF Yield for StoneCo Ltd (STNE) as of Jan 08 2026?

As of Jan 08 2026, StoneCo Ltd (STNE) has a FCF Yield of -6.26%. This means that for every dollar of StoneCo Ltd’s market capitalization, the company generates -6.26 cents in free cash flow.

What is the current Forward P/E ratio for StoneCo Ltd (STNE) as of Jan 08 2026?

As of Jan 08 2026, StoneCo Ltd (STNE) has a Forward P/E ratio of 7.89. This means the market is willing to pay $7.89 for every dollar of StoneCo Ltd’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for StoneCo Ltd (STNE) as of Jan 08 2026?

As of Jan 08 2026, StoneCo Ltd (STNE) has a Forward P/S ratio of 1.38. This means the market is valuing STNE at $1.38 for every dollar of expected revenue over the next 12 months.

STNE Valuation