Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

DLocal Limited (DLO)

Company Dividend Discount ModelIndustry: Software - InfrastructureSector: Technology

Valuation Snapshot

Stable Growth$3.78 - $5.39$4.57
Multi-Stage$6.41 - $7.00$6.70
Blended Fair Value$5.64
Current Price$11.34
Upside-50.30%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019
DPS0.00%0.00%0.000.000.000.000.050.030.000.000.000.00
YoY Growth--0.00%0.00%0.00%-100.00%50.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--0.00%0.00%0.00%0.00%0.15%0.10%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)170.95
(-) Cash Dividends Paid (M)149.98
(=) Cash Retained (M)20.97
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)34.1921.3712.82
Cash Retained (M)20.9720.9720.97
(-) Cash Required (M)-34.19-21.37-12.82
(=) Excess Retained (M)-13.22-0.408.14
(/) Shares Outstanding (M)304.09304.09304.09
(=) Excess Retained per Share-0.040.000.03
LTM Dividend per Share0.490.490.49
(+) Excess Retained per Share-0.040.000.03
(=) Adjusted Dividend0.450.490.52
WACC / Discount Rate9.64%9.64%9.64%
Growth Rate-2.00%-1.00%0.00%
Fair Value$3.78$4.57$5.39
Upside / Downside-66.63%-59.66%-52.46%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)170.95169.24167.55165.87164.21162.57167.45
Payout Ratio87.74%88.19%88.64%89.09%89.55%90.00%92.50%
Projected Dividends (M)149.98149.25148.51147.78147.05146.31154.89

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.64%9.64%9.64%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)134.74136.12137.49
Year 2 PV (M)121.05123.54126.04
Year 3 PV (M)108.75112.11115.54
Year 4 PV (M)97.69101.74105.92
Year 5 PV (M)87.7692.3397.09
PV of Terminal Value (M)1,398.081,470.881,546.68
Equity Value (M)1,948.082,036.722,128.77
Shares Outstanding (M)304.09304.09304.09
Fair Value$6.41$6.70$7.00
Upside / Downside-43.51%-40.94%-38.27%

High-Yield Dividend Screener

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