Market Pulse44Neutral

Dlocal LimitedOpportunity Rank #16(DLO) Intrinsic Value & DCF Analysis (2026)

Sector: Technology

Current Price

$14.48

Last updated: Jul 20, 2026

Price vs Intrinsic Value

$14.48
Price
$48.96
Intrinsic Value
Undervalued by 238%MOS: $39.17

Fundamental Score

93/100
Bullish

Weighted across 6 signals

Narrative Score

55/100
Improving

No change vs previous

Trend Score

68/100
Constructive

As of 2026-07-17

The intrinsic value of Dlocal Limited (DLO) is estimated at $48.96 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $14.48, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 15.79% long-term growth rate and a 10.00% discount rate (calculated: 8.81%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Dlocal Limited (DLO) is estimated at $48.96 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $14.48, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 15.79% long-term growth rate and a 10.00% discount rate (calculated: 8.81%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$48.96
▲ 238.12% upside
20% margin of safety: $39.17
Years: 10Growth Rate: 15.79%
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Capital Efficiency

Average Quarterly ROIC
32.4%
Cost of Capital (estimated)10%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

93/100
BullishWeighted across 6 signals
DCF Discount
238.1% discount to price
100
FCF Yield
10.3% trailing FCF yield
100
ROIC vs WACC
ROIC 32.4% vs WACC 10.0% (3.2x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count growing
30
FCF CAGR (5Y)
36.5% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: Buybacks.

Narrative Details

55/100
Improving
Vs 6-Month Baseline:High (84th pct)Weighted across 4 recent drivers
Trend: StableConfidence: 57%Updated: 2d ago
Sources: 10 (8 News · 2 Analyst)
Drivers(last 30 days)
7 news sentiment+0.4
Analyst upgrades+0.1
Regulatory scrutiny+0.0
Analyst reiterations0.0

Trend Details

68/100
ConstructiveAs of 2026-07-17310 daily bars used
21 EMA vs 50 EMA+5.0%
Price vs 50 EMA+8.4%
Distance from 52-Week High-8.5%
Price vs 21 EMA69 · +3.3%
Price vs 50 EMA83 · +8.4%
21 EMA vs 50 EMA84 · +5.0%
3M RS vs SPY55 · +1.2%
6M RS vs SPY34 · -5.8%
Distance from 52W High83 · -8.5%

Investment Coach

Updating... 38d ago
BUYConfidence: 81%
Thesis
DLocal Limited (DLO) presents a compelling buy opportunity with a current price significantly undervalued at 295.7% below its estimated fair value of $46.61, supported by strong fundamentals including a high ROIC of 32.4% well above its 10% cost of capital and a healthy free cash flow yield of 12.7%. The company's robust financial health is further evidenced by a strong fundamental score of 93 and consistent free cash flow growth.
Key Risk
A key risk is the potential decline in ROIC below the cost of capital, which could undermine the company's valuation and growth prospects.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Confirm ROIC stays above cost of capital over coming quarters.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 22.66%5 Year CAGR: 22.83%

Free Cash Flow (in millions)

TTM2025202420232022202120202019
$438$426-$10$312$169$157$92$32

How Intrinziq Estimates Fair Value

Intrinziq estimates Dlocal Limited's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Dlocal LimitedTechnology

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.