On the four Ms, Dlocal Ltd earns 100 for management and 82 for moat. The management score rests on a return on invested capital of 28.8% and a gross margin of 36.8% — figures that describe a business turning capital into profit efficiently. Debt sits at 0.16x equity.
The price anchors are built on deliberately conservative assumptions. Growth is modelled at 15.0% a year, below the 60.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 30.0x. That produces an intrinsic value of $20.40, a 10-CAP price of $14.43 and a payback time price of $22.78, with the value zone set at the highest of the three, $22.78. Today's price of $13.73 sits inside that zone.
Dlocal Ltd currently reads as a strong business at a price the model supports. That is rare enough to warrant asking what the market sees that these figures do not.
| Price | $13.73 |
| Market cap | $4.0B |
| P/E ratio | 20.2x |
| Return on invested capital | 28.8% |
| Gross margin | 36.8% |
| Debt to equity | 0.16x |
| Free cash flow yield | 10.1% |
| Growth rate used | 15.0% |
| Growth rate measured | 60.0% |
| Exit multiple assumed | 30.0x |
| Company | Moat | Buy price |
| Shift4 Payments Inc-Class A (FOUR) | 79 | $106.49 |
| Euronet Worldwide Inc (EEFT) | 65 | $52.09 |
| Wex Inc (WEX) | 34 | $81.39 |
| Amdocs Ltd (DOX) | 44 | $63.57 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Dlocal Ltd rather than accepting ours.