Magazine Luiza S.A (MGLU3) fair value: what the stock is really worth
As of Nov 13, 2026: fair value (intrinsic value) of Magazine Luiza S.A stock BRL 8.56, price BRL 7.81, upside +9.6%, quality 56 out of 100. Rating: fairly valued. 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$0.0015 – R$173.44 · fair‑value band R$7.94 – R$13.82 · the R$7.81 price screens below the R$8.56 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 12, 2026.
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Magazine Luiza S.A. engages in the retail sale of consumer goods. It operates through Retail, Financial Operations and Other Services segments. The company also provides credit and financing services.
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In addition, it is involved in the provision of consortium administration services; and e-commerce of perfumes, cosmetics, and fashion products, as well as software development services.
Further, the company provides logistics and technological solutions, as well as resale goods and provision of services in the stores, electronic and food delivery management platform.
It serves through physical stores, e-commerce platform, and SuperApp. Magazine Luiza S.A. was founded in 1957 and is headquartered in Franca, Brazil. Magazine Luiza S.A. operates as a subsidiary of LTD Administração e Participação S.A.
Stock analysis
Magazine Luiza S.A (MGLU3) currently trades at R$7.81, while our model-based Fair Value estimate is R$8.56, so the stock looks roughly fairly valued today (gap 8.8%).
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Valuation
Bull case: the Multiples group reads highest at a median of R$11.93 per share, and 16 of the 26 models we run sit above the R$7.81 price.
Bear case: the Dividend Discount group reads lowest at R$3.03, and 10 of the 26 models stay below the price. Data coverage for this calculation is medium.
Scenario range: R$7.94 (bear) to R$13.82 (bull), the price of R$7.81 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 56/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Magazine Luiza S.A reported revenue of R$38.7B in FY2025 versus R$35.3B in FY2021, a compound +2.3%/yr. Reported net income was R$205M in FY2025, compounding −23.3%/yr from FY2021.
Key figures
Market cap R$6.1B (≈ $1.1B) Small · P/S ratio 0.13 · EPS (TTM) R$−0.0100 · Dividend yield 1.0% · Net margin 0.2% · Return on equity 0.8% · Return on assets (EBIT) 1.8% (5-year average) · Operating margin 3.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 25 out of 100 (low confidence).
What moves the price
The share trades about 42% below its 52-week high and 101% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −7% fair-value upside, at 10%, MGLU3 screens cheaper than that median.
Fair Value models
BearR$7.94Fair Value R$8.56BullR$13.82
Price R$7.81 · Upside +9.6%
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.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.71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+1.7%
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.
+1.2%
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.
+5.8%
Start year 2020 (pandemic). Over 10 years: +15.7% a year
Revenue growth 17 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.
+17.2%
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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.
−19.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−20.3%
Dividend (yield on the price)1.0%
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.−20.3% vs 4.2%, 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.3% → 3%
Price, fair value, quality and upside side by side.
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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.Specialty Retail · 215 stocks
Beats the industry median on 6/14 measures
A mixed picture versus its industry peers.
Valuation
Quality Score56 · Below median
Fair Value upside+9.6% · Above median
Profitability
Return on equity (12 months)0.8% · Bottom 25%
Return on assets0.5% · Below median
Net margin (12 months)0.2% · Below median
Operating margin (12 months)3.5% · Below median
Growth and dividend
Revenue growth (quarter YoY)−2.6% · Bottom 25%
Dividend yield (12 months)1.0% · Bottom 25%
Balance sheet
Debt / equity0.35× · Above median
Valuation Multiplesvs Specialty Retail median · lower = cheaper
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Is Magazine Luiza S.A (MGLU3) overvalued or undervalued?
As of Nov 12, 2026, our model estimates a fair value of R$8.56 versus a price of R$7.81, about +10% upside (fairly valued).
What is the fair value of MGLU3?
Our model-based fair value for Magazine Luiza S.A is R$8.56 (as of Nov 12, 2026), built from audited fundamentals. The current price: R$7.81.
What is the quality score of MGLU3?
Magazine Luiza S.A has a Quality Score of 56/100. 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 Magazine Luiza S.A (MGLU3)?
Our model-based price target is the fair value of R$8.56 (as of Nov 12, 2026) from 26 valuation models. Cautious scenario R$7.94, optimistic scenario R$13.82. It is a calculation from audited fundamentals, not an analyst target.
What is the Magazine Luiza S.A stock forecast for 2026?
Our models put fair value at R$8.56, about +10% upside versus a price of R$7.81 (fairly valued). Cautious scenario R$7.94, optimistic scenario R$13.82. The calculation is refreshed regularly with new filings.
What is the revenue of Magazine Luiza S.A (MGLU3)?
Magazine Luiza S.A reported trailing-twelve-month revenue of about R$38.3B (latest available figure, as of Nov 12, 2026).
Does Magazine Luiza S.A pay a dividend?
Magazine Luiza S.A currently shows a dividend yield of 1.04% relative to its recent price (as of Nov 12, 2026).
How much is the dividend of Magazine Luiza S.A (MGLU3) and when is the ex-dividend date?
Magazine Luiza S.A pays a dividend of R$0.081 per share a year, a dividend yield of 1.0%. The last ex-dividend date was Apr 27, 2026. The payout ratio is 38.6% of earnings (on adjusted earnings, reported 30.7%). Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What is the intrinsic value of Magazine Luiza S.A (MGLU3)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Magazine Luiza S.A it is R$8.56 per share (as of Nov 12, 2026), against a price of R$7.81. 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 Magazine Luiza S.A stock overvalued or undervalued in 2026?
As of Nov 12, 2026, MGLU3 trades below its calculated fair value: price R$7.81, fair value R$8.56, a gap of about +10% (fairly valued). 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 MGLU3?
No. The price is what the market pays today (R$7.81); the fair value is what the company's own numbers justify (R$8.56). For Magazine Luiza S.A the two are R$0.7500 per share apart. That gap is exactly why we show both numbers side by side.
How much is Magazine Luiza S.A worth?
The market values Magazine Luiza S.A at about R$6.1B (market capitalisation, as of Nov 12, 2026). Per share that is R$7.81; our models calculate a fair value of R$8.56 per share.
What do the bullish and bearish scenarios say about MGLU3?
Our models span a range for Magazine Luiza S.A: cautious scenario R$7.94, base R$8.56, optimistic R$13.82 per share (as of Nov 12, 2026, price R$7.81). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the PEG ratio of MGLU3?
The PEG ratio of Magazine Luiza S.A is 0.26 (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 Magazine Luiza S.A (MGLU3)?
Balance-sheet figures for Magazine Luiza S.A (as of Nov 12, 2026): return on equity 0.8%, debt of 0.35 per unit of equity. They feed the Quality Score of 56/100, which measures business quality independently of the share price.
How far is MGLU3 from its 52-week high?
Magazine Luiza S.A trades at R$7.81, about 42% below its 52-week high of R$13.58 and 101% above the low of R$3.88 (as of Nov 13, 2026). Distance from the high says nothing about value: that is what the fair value of R$8.56 is for.
Which stocks are comparable to Magazine Luiza S.A?
From the same area (Consumer Cyclical) we also value Alimentation Couche-Tard Inc, Williams-Sonoma, Inc, Ulta Beauty, Inc, Casey's General Stores, Inc, 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 Magazine Luiza S.A stock attractive at the current price?
The data as of Nov 12, 2026: price R$7.81, calculated fair value R$8.56 (+10%), Quality Score 56/100, 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 MGLU3 calculated?
We run Magazine Luiza 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$8.56 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 13.9% above its aggregate fair value. Magazine Luiza S.A currently trades 9% 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 Magazine Luiza S.A (MGLU3)?
The closing price on Nov 13, 2026 was R$7.81. Our model-based fair value is R$8.56, about +10% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Magazine Luiza S.A right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits below our cautious bear case: the market assumes less than even our pessimistic scenario. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Key figures of Magazine Luiza S.A
How large is the market capitalisation of Magazine Luiza S.A (MGLU3)?
The market capitalisation of Magazine Luiza S.A is R$6.1B (≈ $1.1B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Magazine Luiza S.A (MGLU3)?
The price-to-sales ratio of Magazine Luiza S.A is 0.13 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Magazine Luiza S.A (MGLU3)?
Earnings per share at Magazine Luiza S.A are R$−0.0100. Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Magazine Luiza S.A (MGLU3)?
The dividend yield of Magazine Luiza S.A is 1.0% (payout 38.6%, on adjusted earnings, reported 30.7%). 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 Magazine Luiza S.A (MGLU3)?
The net margin of Magazine Luiza S.A is 0.2% (last twelve months). 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 Magazine Luiza S.A (MGLU3)?
The return on equity (ROE) of Magazine Luiza S.A is 0.8% (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 Magazine Luiza S.A (MGLU3)?
On an EBIT basis the return on assets of Magazine Luiza S.A is 1.8% (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 Magazine Luiza S.A (MGLU3)?
The operating margin of Magazine Luiza S.A is 3.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Magazine Luiza S.A (MGLU3)?
Revenue at Magazine Luiza S.A is growing −2.6% versus a year earlier (3y avg +1.2%). 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 Magazine Luiza S.A (MGLU3)?
Earnings per share at Magazine Luiza S.A are growing −55.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Magazine Luiza S.A (MGLU3) generate?
The free cash flow of Magazine Luiza S.A is R$14.7B (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Magazine Luiza S.A (MGLU3) carry?
The net debt of Magazine Luiza S.A is R$7.0B (fiscal year 2025, ≈ 0.5 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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Nov 12, 2026