Assessing DLocal (DLO) Valuation After Truist Endorsement And New US$57.2 Million Dividend

Renewed interest in DLocal (DLO) has been fueled by Truist Securities reiterating a positive stance after strong fourth quarter and 2025 results, alongside board approval of a sizeable US$57.2 million cash dividend.

See our latest analysis for DLocal.

Despite the upbeat dividend news and strong recent results, the share price has had a softer patch, with a 90 day share price return of a 12.02% decline and a year to date share price return of an 11.58% decline. However, the 1 year total shareholder return of 49.70% and 3 year total shareholder return of 4.33% still point to a much stronger longer term outcome.

If you are weighing DLocal against other opportunities in fast growing payment and fintech themes, it can help to widen the lens with 20 cryptocurrency and blockchain stocks

With the shares recently softer despite strong 2025 results, a US$57.2 million dividend and analysts seeing DLocal as undervalued, the key question is clear: is there still a buying opportunity here, or is future growth already priced in?

Most Popular Narrative: 44.7% Undervalued

According to the most followed narrative on DLocal, the fair value estimate of $22.49 sits well above the last close of $12.44, setting up a wide valuation gap for investors to weigh.

The trading narrative for dLocal (DLO), based on the DCF Valuation by HatedMoats, is that the stock is significantly undervalued.

Intrinsic Value (Base Case): $22.49 per share.

Read the complete narrative.

According to cracken25, this valuation leans heavily on dLocal's capital light model, strong returns on invested capital, and a view that current free cash flow expectations are too cautious. The key assumption is that earnings power can support that higher value without relying on aggressive multiples or one off events.

Result: Fair Value of $22.49 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on key uncertainties, including potential take rate compression in core markets and regulatory changes that could pressure margins or limit cross border payment flows.

Find out about the key risks to this DLocal narrative.

Another View: What The P/E Ratio Is Saying

While the DCF based narrative points to DLocal looking undervalued around $12.44, the current P/E of 18.6x tells a different story. It sits above both the 16.2x fair ratio and the 15.4x industry average, although it is well below the 36.6x peer average. This leaves a real question about whether the market is already paying up for quality here.

For a closer look at how this earnings multiple stacks up against the fair ratio and peers, See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Given the mix of optimism and caution in this story, it makes sense to examine the details yourself and decide how comfortable you are with the trade off. To see what is driving the positive parts of the thesis, take a closer look at the 4 key rewards

Looking for more investment ideas?

If DLocal has caught your attention, do not stop here. Widen your opportunity set with a few focused stock ideas tailored to different investing priorities.

• Target income potential with companies screened for resilient payout profiles and higher yields using the 12 dividend fortresses.
• Seek a margin of safety by focusing on companies that combine quality fundamentals with attractive pricing via the 63 high quality undervalued stocks.
• Prioritise resilience by concentrating on businesses with strong finances and low risk markers through the 65 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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