Dlocal Limited (DLO): fair value, margin of safety and Wheel Score

Is DLO undervalued?

At 15.10 (close of 16 Oct 2026), DLO trades 53% below the GLS average fair value of 31.93. That average comes from 9 models run on the latest filings, and 6 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Dlocal Limited the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

There is a wide gap between DDM (2.89) and DCF (84.10). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.

The nightly engine files DLO under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.

Nine valuation models for DLO

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Dlocal Limited scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. A GLS Moat score of 8.7/10 puts DLO among the more durable businesses we track: over ten years the metrics the score watches (revenue, EPS, book value, margins, cash flow, ROIC) have mostly moved the right way, year after year.

Returns on capital are high - ROIC 29.8%, ROE 34.6%, ROA 12.8% - with debt at 0.16 times equity and a free-cash-flow yield of 9.5%.

The dividend yield is 1.30% with a payout ratio of 28% - a small yield that leaves most of the earnings in the business.

Institutional ownership scores 5/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 87: Prime

With a Wheel Score of 87, Dlocal Limited sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 11/20, Moat 13/15, Premium 20/20, Stability 18/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.

Implied volatility is 57% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 239,419 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 1.6M shares a day on a market cap of $4.4B, with a beta of 0.84; the Stability part of the Wheel Score gives that 18 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 11 Nov 2026 (after the close), 26 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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