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Locaweb Serviços de Internet S.A (LWSA3) Fair Value & Analysis

Technology · BR · Market cap R$2.2B

LS Locaweb Serviços de Internet S.A LWSA3 · SA
PriceR$3.88
Fair ValueR$5.86
Upside+51.0%
Quality69/100
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Mixed Growth
Loss-making · -14.6% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/12)
Narrow moat 26/100
Evidence: High Range R$4.57 – R$7.15 Share as image

Fair value as of: Jul 13, 2026

From 15 valuation models · updated 28 days ago

Fair value updated Jul 13, 2026, revised from R$5.87 to R$5.86 (−0.2%) since Jun 25, 2026. Share price +1.0% over the past month.

A solid business, screening 51% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R$4.57). The market is more pessimistic than our downside scenario.
  • Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

R$25.32 R$2.40 Fair Value R$5.86 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 13, 2026.

How to read this chart

60‑month range R$2.40 – R$25.32 · fair‑value band R$4.57 – R$7.15 · the R$3.88 price screens below the R$5.86 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 13, 2026.

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Analysis

Locaweb Serviços de Internet S.A (LWSA3) currently trades at R$3.88, while our model-based Fair Value estimate is R$5.86, implying the stock looks roughly 51.0% undervalued today. The Quality Score stands at 69/100 (solid quality), in the Technology sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Locaweb Serviços de Internet S.A generated revenue of R$1.5B at a net margin of -14.6%. Revenue grew 4.0% year over year. It earns a return on equity of -8.6%. The balance sheet holds a net cash position of R$389M. Fundamentals as of Jul 13, 2026

Our scenario range runs from R$4.57 (bear case) to R$7.15 (bull case); at R$3.88, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 19% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -50% fair-value upside, at 51%, LWSA3 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF R$8.65 R$16.33 R$29.28 80
Rev-Margin DCF R$5.17 R$8.15 R$12.40 74
ROIC Compounder R$3.19 R$3.56 R$3.88 72
All 15 models by family
DCF Models
FCF DCF R$8.95 R$14.96 R$30.39 38
5Y Revenue Exit R$5.17 R$8.10 R$12.38 39
5Y EBITDA Exit R$6.85 R$11.86 R$18.92 41
10Y Revenue Exit R$6.24 R$9.74 R$14.69 36
10Y EBITDA Exit R$7.47 R$12.65 R$21.33 37
Earnings-Based
EPV R$3.19 R$3.56 R$3.88 59
Dividend Discount
Gordon GGM R$0.4600 R$0.9100 R$1.38 70
DDM Multi-Stage R$0.4600 R$0.7900 R$0.9600 61
Multiples
EV/EBIT R$4.71 R$6.00 R$7.28 53
EV/EBITDA R$6.16 R$7.93 R$9.70 54
EV/Revenue R$3.45 R$4.57 R$5.68 43
Asset-Based
NCAV (Graham) R$2.25 R$3.01 R$4.49 50
Growth DCF
Growth DCF R$8.65 R$16.33 R$29.28 80
Rev-Margin DCF R$5.17 R$8.15 R$12.40 74
Economic Profit
ROIC Compounder R$3.19 R$3.56 R$3.88 72

Widest divergence: DCF Models (R$11.86) versus Dividend Discount (R$0.7900). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) R$1.5B
Revenue growth (YoY) +4.0%
Net margin -14.6%
Return on equity -8.6%
Free cash flow R$317M FY2025
Operating margin 14.8%
More key figures
EPS (TTM) R$-0.4000
EPS growth (YoY) +47.1%
Net cash R$389M FY2025

Figures from reported company fundamentals · as of Jul 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 68 · Market factors (momentum, volatility) 46

Profitability 12
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 87
Earnings quality: real cash, not paper profit
Fin. Strength 76
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Locaweb Serviços de Internet S.A. offers hosting, software licensing, and technical support services in Brazil. It operates through two segments, Be Online and Software as a Service & Solutions (Be Online & SaaS), and Commerce.

Full company description

Locaweb Serviços de Internet S.A. offers hosting, software licensing, and technical support services in Brazil. It operates through two segments, Be Online and Software as a Service & Solutions (Be Online & SaaS), and Commerce. The Be Online and Software as a Service & Solutions (Be Online & SaaS) segment provides hosting and cloud services; and SaaS solutions, including email and marketing intelligence software and site builder under the Locaweb, WakeExperience, Nextios, Kinghost, Delivery Diretso, and Connectplug brands. Its Commerce segment offers e-commerce solutions, platform, marketplace integration, and sub-acquiring business services under the Tray, Wake, Yapay, Melhor, Envio, Envio, Credisfera, Vindi, Bagy Sul, Bling, Pagcerto, Bagy, Octadesk, Ideris, Wake Creators and Synthesis names. The company provides data center, telecommunications, software licensing, and intermediation and collection services. Locaweb Serviços de Internet S.A. was founded in 1998 and is headquartered in São Paulo, Brazil.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Locaweb Serviços de Internet S.A reported revenue of R$1.5B in FY2025 versus R$800M in FY2021, a compound +16.8%/yr. Reported net income was −R$225M in FY2025.

Growth Quality 67/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
R$1.5B
Latest YoY
+8.6%
Avg. growth/yr (3Y) 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.
+9.4%
Avg. growth/yr (5Y) 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.
+25.0%
Avg. growth/yr (13Y) 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.
+16.9%
Revenue +16.8%/yr
FY21 R$800M
FY22 R$1.1B
FY23 R$1.3B
FY24 R$1.4B
FY25 R$1.5B
Net income
FY21 −R$15.7M
FY22 R$28.3M
FY23 −R$73.7M
FY24 R$42.2M
FY25 −R$225M

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Cite: Fair Value Calculator (2026). "Locaweb Serviços de Internet S.A Fair Value". https://www.fairvalue-calculator.com/stock/LWSA3

Peer Group

Software - Infrastructure · 370 stocks

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.

Quality Score 69 · Top 25%
Fair Value upside +51% · Top 25%
Return on assets -4% · Bottom 25%
Net margin (TTM) -15% · Bottom 25%
Operating margin (TTM) 15% · Top 25%
Revenue growth 4% · Below median
Dividend yield (TTM) 0.0% · Bottom 25%

Valuation Multiples vs Software - Infrastructure median · lower = cheaper

P/B 0.18× · Cheaper than 75% of peers
P/S (TTM) 0.29× · Cheaper than 75% of peers
P/FCF 1.4× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 0
FUTURE 20 · sector 46
PAST 0 · sector 15
HEALTH 100 · sector 98
DIVIDEND 0 · sector 28

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Software - Infrastructure stocks, each showing price versus our Fair Value estimate (as of Jul 13, 2026).

Stock Price Fair Value vs Fair Value
Microsoft Corporation MSFT $384.00 $274.17 -29%
Oracle Corporation ORAC C$9.08 C$2.94 -68%
Fortinet, Inc FTNT $160.78 $44.96 -72%
Synopsys, Inc 1SNPS €354.50 €93.61 -74%
Block, Inc XYZ A$114.53 A$70.69 -38%
CoreWeave, Inc CRWV $79.94 $44.89 -44%
Range Intelligent Computing Technology Group 300442 ¥71.60 ¥34.00 -53%
Oracle Financial Services Software Limited OFSS ₹11,651 ₹5,821 -50%
360 Security Technology Inc 601360 ¥9.64 ¥5.05 -48%
One97 Communications Limited PAYTM ₹1,342 ₹181.50 -86%

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Frequently asked questions

Is Locaweb Serviços de Internet S.A (LWSA3) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of R$5.86 versus a price of R$3.88, about +51% (undervalued).
What is the fair value of LWSA3?
Our model-based fair value for Locaweb Serviços de Internet S.A is R$5.86 (as of Jul 13, 2026), built from audited fundamentals. The current price is R$3.88.
What is the quality score of LWSA3?
Locaweb Serviços de Internet S.A has a Quality Score of 69/100. 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 revenue of Locaweb Serviços de Internet S.A (LWSA3)?
Locaweb Serviços de Internet S.A reported trailing-twelve-month revenue of about R$1.5B (latest available figure, as of Jul 13, 2026).
What is the net profit margin of LWSA3?
The net profit margin of Locaweb Serviços de Internet S.A is about -14.6%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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