Localiza Rent a Car S.A (RENT3) fair value: what the stock is really worth
As of Nov 11, 2026: fair value (intrinsic value) of Localiza Rent a Car S.A stock BRL 51.69, price BRL 30.24, upside +70.9%, quality 49 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 12, 2026.
How to read this chart
60‑month range R$25.24 – R$61.93 · fair‑value band R$36.18 – R$67.20 · the R$30.24 price screens below the R$51.69 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 12, 2026.
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Localiza Rent a Car S.A., together with its subsidiaries, engages in the car rental business in Brazil and internationally.
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It is involved in fleet administration and management; sale and support of used cars; granting franchises; vehicle claims management; provision of tracking and telemetry solutions; travel and tourism agency services; and other automotive services.
The company also offers Zarp, an app-based network dedicated to drivers for car rental. It serves individual and legal entities. The company was founded in 1973 and is headquartered in Belo Horizonte, Brazil.
Stock analysis
Localiza Rent a Car S.A (RENT3) currently trades at R$30.24, while our model-based Fair Value estimate is R$51.69, implying the stock looks roughly 41% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of R$107.20 per share, and 18 of the 26 models we run sit above the R$30.24 price.
Bear case: the Asset-Based group reads lowest at R$10.49, and 8 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: R$36.18 (bear) to R$67.20 (bull), the price of R$30.24 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 49/100 (below-average quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Localiza Rent a Car S.A reported revenue of R$41.8B in FY2025 versus R$10.9B in FY2021, a compound +39.9%/yr. Reported net income was R$1.9B in FY2025, compounding −2.1%/yr from FY2021.
Key figures
Market cap R$33.2B (≈ $5.9B) Mid · P/E ratio 7.3 · P/S ratio 0.33 · EPS (TTM) R$4.06 · Dividend yield 7.0% · Net margin 4.5% · Return on equity 10.4% · Return on assets (EBIT) 8.6% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 51 out of 100 (low confidence).
What moves the price
The share trades about 45% below its 52-week high and 10% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −7% fair-value upside, at 71%, RENT3 screens cheaper than that median.
Fair Value models
BearR$36.18Fair Value R$51.69BullR$67.20
Price R$30.24 · Upside +70.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (R$1.67 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+12.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+32.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+32.3%
Start year 2020 (pandemic). Over 10 years: +26.7% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+21.9%
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What shareholders gained per year (last 5 years), in BRL ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in BRL: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+11.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.9%
Dividend (yield on the price)7.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.4.9% vs 11.5%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.17% → 19%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+15.8%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+8.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (Brazil: IMF forecast 3.3% a year to 2030, 5.4% from 2016 to 2025) that is about +12.2% a year for the price and +5.0% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (42 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Localiza shows strength in expanding rental days and Seminovos sales while tightening operations, yet its main weakness lies in raising depreciation assumptions that may constrain margin recovery.
Main risk: Elevated debt levels combined with high Brazilian interest rates could raise financing costs or constrain fleet investments and squeeze operating margins.
Bull case: Localiza could leverage its scale and AI integrations to lower operating costs and attract more customers through seamless digital channels while managing debt via proactive refinancing.
Bear case: Persistent high interest rates and debt maturities might force reduced fleet growth or higher rental prices that erode competitiveness against smaller or peer-to-peer alternatives.
Localiza keeps expanding rental days and Seminovos sales while tightening operations. At the same time management is raising depreciation assumptions on the fleet because of newer vehicle models and competitive pressures in the auto market. Can pricing fully offset these higher non-cash costs going forward or will they start to limit margin recovery?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Rental & Leasing Services · 87 stocks
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Cite: Fair Value Calculator (2026). "Localiza Rent a Car S.A Fair Value". https://www.fairvalue-calculator.com/stock/RENT3
Frequently asked questions
Is Localiza Rent a Car S.A (RENT3) overvalued or undervalued?
As of Nov 12, 2026, our model estimates a fair value of R$51.69 versus a price of R$30.24, about +71% upside (undervalued).
What is the fair value of RENT3?
Our model-based fair value for Localiza Rent a Car S.A is R$51.69 (as of Nov 12, 2026), built from audited fundamentals. The current price: R$30.24.
What is the quality score of RENT3?
Localiza Rent a Car S.A has a Quality Score of 49/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Localiza Rent a Car S.A (RENT3)?
Our model-based price target is the fair value of R$51.69 (as of Nov 12, 2026) from 26 valuation models. Cautious scenario R$36.18, optimistic scenario R$67.20. It is a calculation from audited fundamentals, not an analyst target.
What is the Localiza Rent a Car S.A stock forecast for 2026?
Our models put fair value at R$51.69, about +71% upside versus a price of R$30.24 (undervalued). Cautious scenario R$36.18, optimistic scenario R$67.20. The calculation is refreshed regularly with new filings.
What is the revenue of Localiza Rent a Car S.A (RENT3)?
Localiza Rent a Car S.A reported trailing-twelve-month revenue of about R$47.9B (latest available figure, as of Nov 12, 2026).
Does Localiza Rent a Car S.A pay a dividend?
Localiza Rent a Car S.A currently shows a dividend yield of 7.04% relative to its recent price (as of Nov 12, 2026).
How much is the dividend of Localiza Rent a Car S.A (RENT3) and when is the ex-dividend date?
Localiza Rent a Car S.A pays a dividend of R$2.13 per share a year, a dividend yield of 7.0%. The last ex-dividend date was Sep 28, 2026. A dividend has been paid every year since at least 2005. The payout ratio is 52.4% of earnings. Free cash flow covers the dividend 1.28 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Localiza Rent a Car S.A (RENT3)?
For today's price to be fair in a discounted-cash-flow model, Localiza Rent a Car S.A would have to grow free cash flow by +15.8 % per year for five years (discount rate 11.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +32.3 % per year. As of Nov 12, 2026.
What discount rate (WACC) does the fair value of RENT3 use?
Our models discount Localiza Rent a Car S.A at 11.2 %: a base by market capitalisation (mid), damped by beta 0.41, country premium for Brazil. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Localiza Rent a Car S.A that is +15.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.2 %) and the same formula as our fair value.
How much growth has Localiza Rent a Car S.A (RENT3) delivered so far?
Over the past 5 years revenue at Localiza Rent a Car S.A grew +32.3 % a year. The price currently implies free-cash-flow growth of +15.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Localiza Rent a Car S.A (RENT3) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Localiza Rent a Car S.A (+15.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Localiza Rent a Car S.A (RENT3)?
The free-cash-flow yield on the price is 8.72 %: that much free cash flow Localiza Rent a Car S.A produces per unit of market value. When it exceeds the discount rate of our models (11.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Localiza Rent a Car S.A (RENT3)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Localiza Rent a Car S.A it is R$51.69 per share (as of Nov 12, 2026), against a price of R$30.24. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Localiza Rent a Car S.A stock overvalued or undervalued in 2026?
As of Nov 12, 2026, RENT3 trades below its calculated fair value: price R$30.24, fair value R$51.69, a gap of about +71% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RENT3?
No. The price is what the market pays today (R$30.24); the fair value is what the company's own numbers justify (R$51.69). For Localiza Rent a Car S.A the two are R$21.45 per share apart. That gap is exactly why we show both numbers side by side.
How much is Localiza Rent a Car S.A worth?
The market values Localiza Rent a Car S.A at about R$33.2B (market capitalisation, as of Nov 12, 2026). Per share that is R$30.24; our models calculate a fair value of R$51.69 per share.
What do the bullish and bearish scenarios say about RENT3?
Our models span a range for Localiza Rent a Car S.A: cautious scenario R$36.18, base R$51.69, optimistic R$67.20 per share (as of Nov 12, 2026, price R$30.24). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RENT3?
Localiza Rent a Car S.A trades at a price-to-earnings ratio of 7.3 (as of Nov 12, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$51.69 is built from several models across several years. Median P/E at fiscal year-end, 7 fiscal years (2019 to 2025), reported earnings, FY2025 ex one-offs: 25.1. Other multiples: PEG 0.6, P/B 1.3, P/S 0.7, EV/EBITDA 6.0.
What is the PEG ratio of RENT3?
The PEG ratio of Localiza Rent a Car S.A is 0.58 (P/E divided by earnings growth, as of Nov 12, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Localiza Rent a Car S.A (RENT3)?
Balance-sheet figures for Localiza Rent a Car S.A (as of Nov 12, 2026): return on equity 10.4%, debt of 1.53 per unit of equity. They feed the Quality Score of 49/100, which measures business quality independently of the share price.
How far is RENT3 from its 52-week high?
Localiza Rent a Car S.A trades at R$30.24, about 45% below its 52-week high of R$54.51 and 10% above the low of R$27.41 (as of Nov 11, 2026). Distance from the high says nothing about value: that is what the fair value of R$51.69 is for.
Which stocks are comparable to Localiza Rent a Car S.A?
From the same area (Industrials) we also value United Rentals, Inc, Sunbelt Rentals Holdings, AerCap Holdings, U-Haul Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Localiza Rent a Car S.A stock attractive at the current price?
The data as of Nov 12, 2026: price R$30.24, calculated fair value R$51.69 (+71%), Quality Score 49/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RENT3 calculated?
We run Localiza Rent a Car S.A through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of R$51.69 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0% above its aggregate fair value. Localiza Rent a Car S.A currently trades 41% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Localiza Rent a Car S.A (RENT3)?
The closing price on Nov 11, 2026 was R$30.24. Our model-based fair value is R$51.69, about +71% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Localiza Rent a Car S.A right now?
The large discount to fair value meets weak quality (49/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case (R$36.18). The market is more pessimistic than our downside scenario. A fairly wide model range (R$36.18 to R$67.20) leaves room in how you read the outcome.
Where does the earnings growth of Localiza Rent a Car S.A (RENT3) come from?
Earnings per share at Localiza Rent a Car S.A grew +12.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +21.6 %, EBIT margin +0.1 %, tax rate +0.6 %, residual (interest, one-offs) −7.9 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Localiza Rent a Car S.A
How large is the market capitalisation of Localiza Rent a Car S.A (RENT3)?
The market capitalisation of Localiza Rent a Car S.A is R$33.2B (≈ $5.9B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Localiza Rent a Car S.A (RENT3)?
The price-to-sales ratio of Localiza Rent a Car S.A is 0.33 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Localiza Rent a Car S.A (RENT3)?
Earnings per share at Localiza Rent a Car S.A are R$4.06 (price ÷ EPS = P/E 7.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Localiza Rent a Car S.A (RENT3)?
The dividend yield of Localiza Rent a Car S.A is 7.0% (payout 52.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Localiza Rent a Car S.A (RENT3)?
The net margin of Localiza Rent a Car S.A is 4.5% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Localiza Rent a Car S.A (RENT3)?
The return on equity (ROE) of Localiza Rent a Car S.A is 10.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Localiza Rent a Car S.A (RENT3)?
On an EBIT basis the return on assets of Localiza Rent a Car S.A is 8.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Localiza Rent a Car S.A (RENT3)?
The operating margin of Localiza Rent a Car S.A is 23.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Localiza Rent a Car S.A (RENT3)?
Revenue at Localiza Rent a Car S.A is growing +14.4% versus a year earlier (3y avg +32.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Localiza Rent a Car S.A (RENT3)?
Earnings per share at Localiza Rent a Car S.A are growing +319% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Localiza Rent a Car S.A (RENT3) carry?
The net debt of Localiza Rent a Car S.A is R$43.2B (fiscal year 2025, ≈ 14.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 12, 2026