Localiza Rent a Car S.A (RENT3) fair value: what the stock is really worth
We calculate from audited financials what Localiza Rent a Car S.A is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
Compare price with fair valuebelow fair value = cheap, above = expensive
Check the quality50 and up solid, 75 and up strong
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Below-average quality, currently priced close to our fair value of R$37.01.
As of Aug 27, 2026, the fair value of Localiza Rent a Car S.A is R$37.01 per share against a price of R$36.85, so the fair value sits 0% above the price. A model estimate from reported figures, not an analyst target.
✓Healthy Growth (revenue 5y +32.3 %/yr)
!Thin margins · 5.1% net margin
!High debt · generates free cash flow
·5.59% dividend yield
✓Ranks above peers (9/15)
!Moderate moat 51/100
!Weak on balance sheet: 24 out of 100
Evidence: HighRange R$18.86 to R$46.27
Fair value as of: Aug 27, 2026
From 26 valuation models · updated 13 days ago
Share price −2.6% over the past month.
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What matters now
The price sits close to our fair value, market and models broadly agree here, little valuation tension.
A fairly wide model range (R$18.86 to R$46.27) leaves room in how you read the outcome.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.
How to read this chart
60‑month range R$25.61 – R$62.82 · fair‑value band R$18.86 – R$46.27 · the R$36.85 price screens below the R$37.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.
Localiza Rent a Car S.A (RENT3) currently trades at R$36.85, while our model-based Fair Value estimate is R$37.01, implying the stock looks roughly 0.4% fairly valued today. The Quality Score stands at 47/100 (below-average quality), in the Industrials sector. Bull case: the DCF Models group reads highest at a median of R$60.67 per share, and 16 of the 26 models we run sit above the R$36.85 price. Bear case: the Asset-Based group reads lowest at R$16.08, and 10 of the 26 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Localiza Rent a Car S.A generated revenue of R$43.9B at a net margin of 5.1%. Revenue grew 21.2% year over year. It earns a return on equity of 8.5%. Net debt stands at R$43.2B. Fundamentals as of Aug 27, 2026
Scenario range: R$18.86 (bear) to R$46.27 (bull), the price of R$36.85 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 31% below its 52-week high and 17% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −19% fair-value upside, at 0%, RENT3 screens cheaper than that median.
Fair Value models
Based on fiscal year 2025 figures (about 8 months old). Earnings retained since then (R$0.0076 per share) are deliberately not added.
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
ModelBear ⓘ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
Residual Income best evidenceR$19.85R$21.13R$22.8976
EPVR$22.98R$32.65R$41.1273
FCF DCFR$9.89R$37.02R$120.6869
All 26 models by family
DCF Models
FCF DCFR$9.89R$37.02R$120.6869
Owner EarningsR$75.74R$217.09R$513.8268
5Y Revenue ExitR$15.61R$60.67R$151.3964
5Y EBITDA ExitR$68.55R$172.18R$367.9869
5Y P/E Exitn/aR$30.52R$73.6968
10Y Revenue ExitR$11.87R$72.29R$132.1662
10Y EBITDA ExitR$51.80R$177.86R$425.5661
10Y P/E ExitR$0.9100R$35.79R$96.5254
Earnings-Based
Graham-DoddR$11.99R$83.59R$117.3063
Lynch FVR$27.24R$38.92R$50.5961
PEG = 1.0R$27.24R$38.92R$50.5957
EPVR$22.98R$32.65R$41.1273
Dividend Discount
Gordon GGMR$15.15R$31.50R$49.9766
DDM Multi-StageR$15.15R$26.56R$33.0666
Multiples
P/E MultipleR$27.76R$37.01R$46.2763
P/S MultipleR$22.47R$29.96R$37.4658
P/B MultipleR$22.47R$29.96R$37.4655
EV/EBITR$58.54R$89.75R$120.9565
EV/EBITDAR$90.97R$132.97R$174.9867
EV/RevenueR$14.42R$35.62R$56.8350
Asset-Based
NCAV (Graham)R$12.00R$16.08R$24.0054
Growth DCF
Growth DCFR$7.38R$45.08R$119.9967
Rev-Margin DCFR$15.61R$71.49R$157.7065
Economic Profit
Residual Income best evidenceR$19.85R$21.13R$22.8976
ROIC CompounderR$22.98R$45.40R$68.5069
Growth Earnings
Growth-Adj P/ER$36.19R$51.70R$67.2167
Widest divergence: DCF Models (R$60.67) versus Asset-Based (R$16.08). Highest evidence: Residual Income (76).
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Key figures & financial health
P/E ratio19.6as of Jul 16, 2026
P/S ratio0.88P/E × margin
EPS (TTM)R$2.07price ÷ EPS = P/E 19.6
Dividend yield5.6%payout 99.5%
Net margin4.5%FY2025
Return on equity8.5%TTM
More key figures
Profitability
Return on assets (EBIT)8.6%avg 5y
Operating margin20.0%TTM
Growth
Revenue (TTM)R$43.9BTTM
Revenue growth (YoY)+21.2%3y avg +32.9%
EPS growth (YoY)+39.4%
Balance sheet & cash flow
Free cash flowR$2.9BFY2025
Net debtR$43.2BFY2025 · ≈ 14.9 yrs of FCF
Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.
Quality Score breakdown
Overall quality47/100
Of which business quality 44
· Market factors (momentum, volatility) 44
Profitability29
Margins and returns on capital today
Quality Growth58
Are margins and returns improving?
Cashflow62
Earnings quality: real cash, not paper profit
Fin. Strength17
Balance sheet, leverage, solvency risk
Investment72
Disciplined investing over empire-building
Low Volatility74
Calm price path (market factor)
Momentum30
Price trend over the last 3–12 months (market factor)
52W Momentum34
Distance to the 52-week high (market factor)
Net Issuance47
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
Localiza Rent a Car S.A., together with its subsidiaries, engages in the car rental business in Brazil and internationally.
Full company description
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.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
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.
Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$41.8B
Latest YoY
+12.1%
Avg. revenue 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.
+32.9%
Avg. revenue 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.
+32.3%
Avg. revenue growth/yr (25Y) ⓘ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.
+21.9%
Value creation/yr (5Y, in BRL) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
+10.5%
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+4.9%
Dividend yield5.6%
Trend ⓘ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.5Y 4.9% vs 10Y 11.5%, flattening
Operating margin (EBIT) ⓘ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.17.4% (2020) → 18.7% (2025) · rising
Worst earnings drop50% (2023) · in BRL
Revenue+39.9%/yr
FY21R$10.9B
FY22R$17.8B
FY23R$28.9B
FY24R$37.3B
FY25R$41.8B
Net income−2.1%/yr
FY21R$2.0B
FY22R$1.8B
FY23R$1.8B
FY24R$1.8B
FY25R$1.9B
Character of growth · EPS growth decomposed (2014-2025)+12.8 % p.a.
Revenue per share+21.6 %
of which total revenue +27.3 % · buybacks/dilution −4.5 %
EBIT margin+0.1 %
Tax rate+0.6 %
Residual (interest, one-offs)−7.9 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
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.
Valuation
Quality Score47 · Above median
Fair Value upside+2% · Below median
Profitability
Return on equity (TTM)9% · Above median
Return on assets6% · Top 25%
Net margin (TTM)5% · Above median
Operating margin (TTM)20% · Above median
Growth and dividend
Revenue growth21% · Top 25%
Dividend yield (TTM)5.6% · Top 25%
Balance sheet
Debt / equity1.53× · Above median
Valuation Multiples vs Rental & Leasing Services median · lower = cheaper
P/E (TTM)19.6× · Pricier than median
P/B1.75× · Pricier than median
P/S (TTM)1.02× · Pricier than median
P/FCF3.0× · Cheaper than median
EV/EBITDA9.6× · Pricier than median
PEG0.58× · Cheaper than median
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Localiza Rent a Car S.A deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
Implied FCF growth, 10 years+7.7 % per year
Achieved revenue growth, 5 years+32.3 % p.a.
Sector median revenue growth+4.6 %
FCF yield on price7.37 %
Discount rate (WACC) in the models8.3 %
The price demands less growth than the company recently delivered: even a weaker business would justify the price. Ranking of the largest stocks →
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.
This stockSector peers
VALUE33· sector 63
FUTURE100· sector 30
PAST34· sector 27
HEALTH24· sector 69
DIVIDEND100· sector 47
Insider activity: 40/100
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
Similar stocks
10 more Rental & Leasing Services stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).
Is Localiza Rent a Car S.A (RENT3) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of R$37.01 versus a price of R$36.85, about +0% upside (fairly valued).
What is the fair value of RENT3?
Our model-based fair value for Localiza Rent a Car S.A is R$37.01 (as of Aug 27, 2026), built from audited fundamentals. The current price: R$36.85.
What is the quality score of RENT3?
Localiza Rent a Car S.A has a Quality Score of 47/100. 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$37.01 (as of Aug 27, 2026) from 26 valuation models. Cautious scenario R$18.86, optimistic scenario R$46.27. 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$37.01, about +0% upside versus a price of R$36.85 (fairly valued). Cautious scenario R$18.86, optimistic scenario R$46.27. 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$43.9B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of RENT3?
The net profit margin of Localiza Rent a Car S.A is about 5.1%, meaning it keeps roughly 5.1% of revenue as net income. Based on the latest reported figures.
Does Localiza Rent a Car S.A pay a dividend?
Localiza Rent a Car S.A currently shows a dividend yield of about 5.59% relative to its recent price (as of Aug 27, 2026).
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 +7.7 % per year for ten years (discount rate 8.3 %, then 2 % perpetual growth). Over the last 5 years revenue grew +32.3 % per year. As of Aug 27, 2026.
What discount rate (WACC) does the fair value of RENT3 use?
Our models discount Localiza Rent a Car S.A at 8.3 %: a base by market capitalisation (mid), damped by beta 0.22. The same rate applies in all 26 models.
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$37.01 per share (as of Aug 27, 2026), against a price of R$36.85. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Localiza Rent a Car S.A stock overvalued or undervalued in 2026?
As of Aug 27, 2026, RENT3 trades below its calculated fair value: price R$36.85, fair value R$37.01, a gap of about +0% (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 RENT3?
No. The price is what the market pays today (R$36.85); the fair value is what the company's own numbers justify (R$37.01). For Localiza Rent a Car S.A the two are R$0.1600 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$44.8B (market capitalisation, as of Aug 27, 2026). Per share that is R$36.85; our models calculate a fair value of R$37.01 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$18.86, base R$37.01, optimistic R$46.27 per share (as of Aug 27, 2026, price R$36.85). 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 19.6 (as of Aug 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$37.01 is built from several models across several years. Other multiples: PEG 0.6, P/B 1.8, P/S 1.0, EV/EBITDA 9.6.
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 Aug 27, 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 Aug 27, 2026): return on equity 8.5%, debt of 1.53 per unit of equity. They feed the Quality Score of 47/100, 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$36.85, about 31% below its 52-week high of R$53.35 and 17% above the low of R$31.56 (as of Aug 27, 2026). Distance from the high says nothing about value: that is what the fair value of R$37.01 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 Aug 27, 2026: price R$36.85, calculated fair value R$37.01 (+0%), Quality Score 47/100, 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 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 R$37.01, with the spread shown as a cautious and an optimistic scenario.
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