Magazine Luiza Valuation
| MGLU3 Stock | BRL 9.31 0.11 1.20% |
At this time, the firm appears to be overvalued. Magazine Luiza SA secures a last-minute Real Value of R$8.27 per share. The latest price of the firm is R$9.31. Our model forecasts the value of Magazine Luiza SA from analyzing the firm fundamentals such as Return On Equity of -0.0341, profit margin of (0.01) %, and Current Valuation of 27.31 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Magazine Luiza's price fluctuation is somewhat reliable at this time. Calculation of the real value of Magazine Luiza SA is based on 3 months time horizon. Increasing Magazine Luiza's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Magazine stock is determined by what a typical buyer is willing to pay for full or partial control of Magazine Luiza SA. Since Magazine Luiza is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Magazine Stock. However, Magazine Luiza's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 9.31 | Real 8.27 | Hype 9.31 | Naive 9.44 |
The intrinsic value of Magazine Luiza's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Magazine Luiza's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Magazine Luiza SA helps investors to forecast how Magazine stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Magazine Luiza more accurately as focusing exclusively on Magazine Luiza's fundamentals will not take into account other important factors: Magazine Luiza Total Value Analysis
Magazine Luiza SA is now projected to have takeover price of 27.31 B with market capitalization of 27.58 B, debt of 9.41 B, and cash on hands of 1.78 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Magazine Luiza fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
27.31 B | 27.58 B | 9.41 B | 1.78 B |
Magazine Luiza Investor Information
About 56.0% of the company outstanding shares are owned by corporate insiders. The company has price-to-book ratio of 1.73. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Magazine Luiza SA has Price/Earnings To Growth (PEG) ratio of 0.52. The entity last dividend was issued on the 6th of July 2021. The firm had 10:1 split on the 25th of May 2024. Based on the key measurements obtained from Magazine Luiza's financial statements, Magazine Luiza SA is not in a good financial situation at the moment. It has a very high risk of going through financial straits in January.Magazine Luiza Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The newest return on assets of Magazine implies not a very effective usage of assets in December.Magazine Luiza Ownership Allocation
Magazine Luiza SA maintains a total of 6.68 Billion outstanding shares. Magazine Luiza SA holds significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.Magazine Luiza Profitability Analysis
The company reported the revenue of 35.28 B. Net Income was 590.66 M with profit before overhead, payroll, taxes, and interest of 8.49 B.About Magazine Luiza Valuation
The stock valuation mechanism determines Magazine Luiza's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Magazine Luiza SA based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Magazine Luiza. We calculate exposure to Magazine Luiza's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Magazine Luiza's related companies.Magazine Luiza S.A. engages in the retail sale of consumer goods. Magazine Luiza S.A. is a subsidiary of LTD Administrao e Participao S.A. MAGAZ LUIZA operates under Specialty Retail classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 40000 people.
8 Steps to conduct Magazine Luiza's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Magazine Luiza's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Magazine Luiza's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Magazine Luiza's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Magazine Luiza's revenue streams: Identify Magazine Luiza's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Magazine Luiza's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Magazine Luiza's growth potential: Evaluate Magazine Luiza's management, business model, and growth potential.
- Determine Magazine Luiza's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Magazine Luiza's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Additional Tools for Magazine Stock Analysis
When running Magazine Luiza's price analysis, check to measure Magazine Luiza's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Magazine Luiza is operating at the current time. Most of Magazine Luiza's value examination focuses on studying past and present price action to predict the probability of Magazine Luiza's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Magazine Luiza's price. Additionally, you may evaluate how the addition of Magazine Luiza to your portfolios can decrease your overall portfolio volatility.