Localiza Rent A Car SA (LZRFY) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Localiza Rent A Car SA $12.22, price $7.20, upside +69.7%, quality 51 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range $4.08 – $13.29 · fair‑value band $8.55 – $15.88 · the $7.20 price screens below the $12.22 fair value. Dashed = 300-day average. As of Sep 24, 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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Localiza Rent a Car S.A., together with its subsidiaries, engages in the car rental business in Brazil and internationally. 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 SA (LZRFY) currently trades at $7.20, while our model-based Fair Value estimate is $12.22, implying the stock looks roughly 41.1% undervalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of $100.11 per share, and 26 of the 26 models we run sit above the $7.20 price.
Bear case: the Dividend Discount group reads lowest at $9.05, and 0 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: $8.55 (bear) to $15.88 (bull), the price of $7.20 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 51/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Localiza Rent A Car SA 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 $8.6B · P/E ratio 19.0 · P/S ratio 0.86 · EPS (TTM) $0.4100 · Dividend yield 5.0% · Net margin 4.5% · Return on equity 8.5% · Return on assets (EBIT) 8.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 36% below its 52-week high and 18% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −13% fair-value upside, at 70%, LZRFY screens cheaper than that median.
Fair Value models
Bear $8.55Fair Value $12.22Bull $15.88
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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 ⓘEvidence = 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 12 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.
+22.9%
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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.
+10.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.0%
Dividend (yield on the price)5.0%
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.18% → 19%
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what 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).
+10.6%
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.
+7.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +8.0% a year for the price and +5.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (36 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.
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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 · 91 stocks
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Cite: Fair Value Calculator (2026). "Localiza Rent A Car SA Fair Value". https://www.fairvalue-calculator.com/stock/LZRFY
Frequently asked questions
Is Localiza Rent A Car SA (LZRFY) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $12.22 versus a price of $7.20, about +70% upside (undervalued).
What is the fair value of LZRFY?
Our model-based fair value for Localiza Rent A Car SA is $12.22 (as of Sep 24, 2026), built from audited fundamentals. The current price: $7.20.
What is the quality score of LZRFY?
Localiza Rent A Car SA has a Quality Score of 51/100. 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 SA (LZRFY)?
Our model-based price target is the fair value of $12.22 (as of Sep 24, 2026) from 26 valuation models. Cautious scenario $8.55, optimistic scenario $15.88. It is a calculation from audited fundamentals, not an analyst target.
What is the Localiza Rent A Car SA stock forecast for 2026?
Our models put fair value at $12.22, about +70% upside versus a price of $7.20 (undervalued). Cautious scenario $8.55, optimistic scenario $15.88. The calculation is refreshed regularly with new filings.
What is the revenue of Localiza Rent A Car SA (LZRFY)?
Localiza Rent A Car SA reported trailing-twelve-month revenue of about $43.9B (latest available figure, as of Sep 24, 2026).
Does Localiza Rent A Car SA pay a dividend?
Localiza Rent A Car SA currently shows a dividend yield of about 5.00% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Localiza Rent A Car SA (LZRFY)?
For today's price to be fair in a discounted-cash-flow model, Localiza Rent A Car SA would have to grow free cash flow by +10.6 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +32.3 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of LZRFY use?
Our models discount Localiza Rent A Car SA at 8.5 %: a base by market capitalisation (mid), damped by beta 0.22, country premium for USA. 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 SA that is +10.6 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has Localiza Rent A Car SA (LZRFY) delivered so far?
Over the past 5 years revenue at Localiza Rent A Car SA grew +32.3 % a year. The price currently implies +10.6 % per year free-cash-flow growth a 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 SA (LZRFY) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Localiza Rent A Car SA (+10.6 % per year a 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 SA (LZRFY)?
The free-cash-flow yield on the price is 26.58 %: that much free cash flow Localiza Rent A Car SA produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), 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 SA (LZRFY)?
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 SA it is $12.22 per share (as of Sep 24, 2026), against a price of $7.20. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Localiza Rent A Car SA stock overvalued or undervalued in 2026?
As of Sep 24, 2026, LZRFY trades below its calculated fair value: price $7.20, fair value $12.22, a gap of about +70% (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 LZRFY?
No. The price is what the market pays today ($7.20); the fair value is what the company's own numbers justify ($12.22). For Localiza Rent A Car SA the two are $5.02 per share apart. That gap is exactly why we show both numbers side by side.
How much is Localiza Rent A Car SA worth?
The market values Localiza Rent A Car SA at about $8.6B (market capitalisation, as of Sep 24, 2026). Per share that is $7.20; our models calculate a fair value of $12.22 per share.
What do the bullish and bearish scenarios say about LZRFY?
Our models span a range for Localiza Rent A Car SA: cautious scenario $8.55, base $12.22, optimistic $15.88 per share (as of Sep 24, 2026, price $7.20). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of LZRFY?
Localiza Rent A Car SA trades at a price-to-earnings ratio of 19.0 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $12.22 is built from several models across several years.
How solid is the balance sheet of Localiza Rent A Car SA (LZRFY)?
Balance-sheet figures for Localiza Rent A Car SA (as of Sep 24, 2026): return on equity 8.5%, debt of 1.53 per unit of equity. They feed the Quality Score of 51/100, which measures business quality independently of the share price.
How far is LZRFY from its 52-week high?
Localiza Rent A Car SA trades at $7.20, about 36% below its 52-week high of $11.28 and 18% above the low of $6.09 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of $12.22 is for.
Which stocks are comparable to Localiza Rent A Car SA?
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 SA stock attractive at the current price?
The data as of Sep 24, 2026: price $7.20, calculated fair value $12.22 (+70%), Quality Score 51/100, 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 LZRFY calculated?
We run Localiza Rent A Car SA through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $12.22, 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 14.1 % above its aggregate fair value. Localiza Rent A Car SA currently trades 70 % 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 SA (LZRFY)?
The closing price on Sep 23, 2026 was $7.20. Our model-based fair value is $12.22, about +70% 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 SA right now?
The price is below even our cautious bear case ($8.55). The market is more pessimistic than our downside scenario. Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($8.55 to $15.88) leaves room in how you read the outcome.
Key figures of Localiza Rent A Car SA
How large is the market capitalisation of Localiza Rent A Car SA (LZRFY)?
The market capitalisation of Localiza Rent A Car SA is $8.6B. 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 SA (LZRFY)?
The price-to-sales ratio of Localiza Rent A Car SA is 0.86 (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 SA (LZRFY)?
Earnings per share at Localiza Rent A Car SA are $0.4100 (price ÷ EPS = P/E 19.0). 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 SA (LZRFY)?
The dividend yield of Localiza Rent A Car SA is 5.0% (payout 87.8%). 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 SA (LZRFY)?
The net margin of Localiza Rent A Car SA 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 SA (LZRFY)?
The return on equity (ROE) of Localiza Rent A Car SA is 8.5% (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 SA (LZRFY)?
On an EBIT basis the return on assets of Localiza Rent A Car SA is 8.7% (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 SA (LZRFY)?
The operating margin of Localiza Rent A Car SA is 20.0% (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 SA (LZRFY)?
Revenue at Localiza Rent A Car SA is growing +21.2% 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 SA (LZRFY)?
Earnings per share at Localiza Rent A Car SA are growing +39.4% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Localiza Rent A Car SA (LZRFY) carry?
The net debt of Localiza Rent A Car SA is $41.9B (fiscal year 2025, ≈ 20.8 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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Sep 24, 2026