Is DLocal Ltd. overvalued or undervalued?

As of 7 July 2025, DLocal Ltd. has moved from a fair to very expensive valuation grade. The company appears to be overvalued based on its current metrics, particularly with a P/E ratio of 35, a Price to Book Value of 6.13, and an EV to EBITDA of 15.22. In comparison, peers such as BlackLine, Inc. have a P/E ratio of 35.70 and EV to EBITDA of 42.41, while Flywire Corp. shows a more attractive valuation with a P/E of 114.41 and EV to EBITDA of 60.06.
Despite a strong one-year return of 78.11% compared to the S&P 500's 17.14%, which suggests positive market sentiment, the high valuation ratios indicate that DLocal Ltd. may not sustain its current price levels in the long term.