Is PagSeguro Digital Ltd. overvalued or undervalued?

As of 7 July 2025, the valuation grade for PagSeguro Digital Ltd. has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company appears to be undervalued, with a P/E ratio of 8, which is significantly lower than peers like Laureate Education, Inc. at 21.23 and CBIZ, Inc. at 47.91. Additionally, PagSeguro's EV to EBITDA stands at 6.22, compared to the industry average, suggesting it is trading at a discount relative to its earnings potential.
In terms of performance, PagSeguro has shown strong returns, with a year-to-date return of 69.97%, significantly outpacing the S&P 500's 12.22% during the same period. This performance reinforces the notion that the stock may be undervalued, especially when considering its PEG ratio of 1.57, which indicates growth potential relative to its price. Overall, PagSeguro Digital Ltd. presents an attractive investment opportunity compared to its peers and the broader market.