Localiza Rent Valuation
| RENT3 Stock | BRL 33.46 0.32 0.97% |
At this time, the firm appears to be overvalued. Localiza Rent a secures a last-minute Real Value of R$32.05 per share. The latest price of the firm is R$33.46. Our model forecasts the value of Localiza Rent a from analyzing the firm fundamentals such as Return On Equity of 0.13, current valuation of 72.96 B, and Profit Margin of 0.13 % as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Localiza Rent's price fluctuation is very steady at this time. Calculation of the real value of Localiza Rent a is based on 3 months time horizon. Increasing Localiza Rent'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 Localiza stock is determined by what a typical buyer is willing to pay for full or partial control of Localiza Rent a. Since Localiza Rent is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Localiza Stock. However, Localiza Rent'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 33.46 | Real 32.05 | Hype 33.46 | Naive 36.76 |
The intrinsic value of Localiza Rent'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 Localiza Rent'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 Localiza Rent a helps investors to forecast how Localiza 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 Localiza Rent more accurately as focusing exclusively on Localiza Rent's fundamentals will not take into account other important factors: Localiza Rent Total Value Analysis
Localiza Rent a is at this time projected to have takeover price of 72.96 B with market capitalization of 54.64 B, debt of 11.18 B, and cash on hands of 74.78 M. 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 Localiza Rent fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
72.96 B | 54.64 B | 11.18 B | 74.78 M |
Localiza Rent Investor Information
About 21.0% of the company outstanding shares are owned by corporate insiders. The book value of Localiza Rent was at this time reported as 20.84. The company has Price/Earnings To Growth (PEG) ratio of 1.38. Localiza Rent a last dividend was issued on the 22nd of December 2022. The entity had 21:20 split on the 23rd of December 2019. Based on the key indicators related to Localiza Rent's liquidity, profitability, solvency, and operating efficiency, Localiza Rent a is not in a good financial situation at the moment. It has a very high risk of going through financial straits in April.Localiza Rent Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Localiza Rent has an asset utilization ratio of 43.07 percent. This implies that the Company is making R$0.43 for each dollar of assets. An increasing asset utilization means that Localiza Rent a is more efficient with each dollar of assets it utilizes for everyday operations.Localiza Rent Ownership Allocation
Localiza Rent a maintains a total of 979.44 Million outstanding shares. Localiza Rent a 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.Localiza Rent Profitability Analysis
The company reported the revenue of 10.9 B. Net Income was 2.04 B with profit before overhead, payroll, taxes, and interest of 3.85 B.About Localiza Rent Valuation
The stock valuation mechanism determines Localiza Rent's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Localiza Rent a based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Localiza Rent. We calculate exposure to Localiza Rent's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Localiza Rent's related companies.Localiza Rent a Car S.A. engages in car rental and franchising activities. The company was founded in 1973 and is headquartered in Belo Horizonte, Brazil. LOCALIZA operates under Rental Leasing Services classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 12610 people.
8 Steps to conduct Localiza Rent's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Localiza Rent'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 Localiza Rent's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Localiza Rent's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Localiza Rent's revenue streams: Identify Localiza Rent's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Localiza Rent's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Localiza Rent's growth potential: Evaluate Localiza Rent's management, business model, and growth potential.
- Determine Localiza Rent'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 Localiza Rent'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 Localiza Stock Analysis
When running Localiza Rent's price analysis, check to measure Localiza Rent'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 Localiza Rent is operating at the current time. Most of Localiza Rent's value examination focuses on studying past and present price action to predict the probability of Localiza Rent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Localiza Rent's price. Additionally, you may evaluate how the addition of Localiza Rent to your portfolios can decrease your overall portfolio volatility.