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PagSeguro Digital (PagSeguro Digital) Intrinsic Value: Projected FCF : $6.78 (As of Apr. 29, 2024)


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What is PagSeguro Digital Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-29), PagSeguro Digital's Intrinsic Value: Projected FCF is $6.78. The stock price of PagSeguro Digital is $12.68. Therefore, PagSeguro Digital's Price-to-Intrinsic-Value-Projected-FCF of today is 1.9.

The historical rank and industry rank for PagSeguro Digital's Intrinsic Value: Projected FCF or its related term are showing as below:

PAGS' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.84   Med: 2.51   Max: 3.17
Current: 1.87

During the past 10 years, the highest Price-to-Intrinsic-Value-Projected-FCF of PagSeguro Digital was 3.17. The lowest was 1.84. And the median was 2.51.

PAGS's Price-to-Projected-FCF is ranked worse than
56.66% of 1262 companies
in the Software industry
Industry Median: 1.62 vs PAGS: 1.87

PagSeguro Digital Intrinsic Value: Projected FCF Historical Data

The historical data trend for PagSeguro Digital's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PagSeguro Digital Intrinsic Value: Projected FCF Chart

PagSeguro Digital Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only - - - 2.76 6.78

PagSeguro Digital Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.76 2.96 3.40 4.17 6.78

Competitive Comparison of PagSeguro Digital's Intrinsic Value: Projected FCF

For the Software - Infrastructure subindustry, PagSeguro Digital's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


PagSeguro Digital's Price-to-Projected-FCF Distribution in the Software Industry

For the Software industry and Technology sector, PagSeguro Digital's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where PagSeguro Digital's Price-to-Projected-FCF falls into.



PagSeguro Digital Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get PagSeguro Digital's Free Cash Flow(6 year avg) = $0.10.

PagSeguro Digital's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(14.862653310476*0.096000000000022+2702.291*0.8)/319.033
=6.78

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


PagSeguro Digital  (NYSE:PAGS) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

PagSeguro Digital's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=12.68/6.7806766532547
=1.87

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


PagSeguro Digital Intrinsic Value: Projected FCF Related Terms

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PagSeguro Digital (PagSeguro Digital) Business Description

Industry
Traded in Other Exchanges
Address
Avenue Brigadeiro Faria Lima, 1384, 4th Floor, Parte A, Sao Paulo, SP, BRA, 01451-001
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused primarily on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.

PagSeguro Digital (PagSeguro Digital) Headlines

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