Stock fact sheet · data as of
PagSeguro Digital Ltd. (PAGS): fair value, margin of safety and Wheel Score
Industrials · Specialty Business Services · Brazil · High Yield Income
Is PAGS undervalued?
PagSeguro Digital Ltd. (PAGS) closed at 10.83 on 16 Oct 2026. The GLS average fair value - the simple average of the 7 valuation models that produced a positive number - is 46.36, which puts the price 77% below it. 7 of the 7 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between EPV (16.97) and Graham Number (96.41). 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 PAGS under High Yield Income: a dividend yield above 4%.
Nine valuation models for PAGS
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.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 58.70 | +442% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 96.41 | +790% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 52.87 | +388% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 20.55 | +90% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 21.23 | +96% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | - | - | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10%; no value tonight |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 57.77 | +433% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 16.97 | +57% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 18.60 | +72% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.70 | -1% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
PagSeguro Digital Ltd. scores 6 of 9 on the Piotroski F-score: a middling result that passes 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. On durability PAGS scores 5.5/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are thin or negative - ROIC 3.5%, ROE 14.2%, ROA 2.8% - with debt at 3.03 times equity and negative free cash flow. Debt of 3.03 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is high at 7.20% (payout ratio 43%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 6/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 3.5% |
|---|---|---|---|
| GLS Moat | 5.5 / 10 | ROE | 14.2% |
| Debt / equity | 3.03 | ROA | 2.8% |
| Free-cash-flow yield | -3.7% | Payout ratio | 43% |
| Institutions | 6 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 84: Prime
With a Wheel Score of 84, PagSeguro Digital Ltd. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 13/20, Moat 8/15, 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 61% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (20 of 20) because volatility this high usually comes with a reason. The option chain is deep: 53,686 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 3.9M shares a day on a market cap of $3.0B, with a beta of 1.24 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 18 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 77% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 8 / 15 | moat 5.5/10 | |
| Premium | 20 / 20 | implied volatility 61% | |
| Stability | 18 / 20 | 3.9M shares/day, $3.0B cap, beta 1.24 |
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.
Similar stocks in Specialty Business Services
The 12 companies below are the closest to PagSeguro Digital Ltd. by market cap within the Specialty Business Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| CBZ CBIZ, Inc. | 54.73 | 66.87 | +18% | 78Good | $3.0B |
| ABM ABM Industries Inc. | 50.76 | 82.96 | +39% | 77Good | $3.0B |
| MMS Maximus, Inc. | 60.24 | 137.06 | +56% | 86Prime | $3.2B |
| BFAM Bright Horizons Family Solutions Inc. | 70.42 | 107.32 | +34% | 85Prime | $3.4B |
| FA First Advantage Corporation | 20.08 | 17.04 | -18% | 60Fair | $3.4B |
| FLYW Flywire Corp | 19.35 | 15.27 | -27% | 60Fair | $2.4B |
| UNF UniFirst Corporation | 258.08 | 110.82 | -133% | 54Fair | $4.7B |
| EVTC EVERTEC, Inc. | 31.40 | 39.37 | +20% | 73Good | $1.9B |
| TIC TIC Solutions, Inc. | 8.68 | 12.57 | +31% | 45Weak | $1.9B |
| CMPR Cimpress plc | 76.72 | 166.98 | +54% | 75Good | $1.9B |
| TH Target Hospitality Corp. | 17.26 | 14.81 | -17% | 45Weak | $1.7B |
| DLX Deluxe Corporation | 22.89 | 49.45 | +54% | 77Good | $1.0B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about PAGS
Is PAGS undervalued right now?
By the GLS models, yes: at 10.83 the stock is 77% below the average fair value of 46.36 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of PAGS and what does it mean?
PAGS scores 84 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for PAGS?
46.36 per share as of 16 Oct 2026 - the simple average of the 7 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does PagSeguro Digital Ltd. report earnings next?
The next earnings report is due on 11 Nov 2026 (after the close), 26 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does PAGS have listed options, and how liquid are they?
Yes. The nightly snapshot found 256 listed contracts with 53,686 open interest across all expiries and implied volatility of 61% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.