Core Viewpoint - PagSeguro, a Brazilian fintech and digital bank, is viewed as a good investment opportunity despite a recent stock sell-off, with strong growth potential and attractive valuation metrics [1][5]. Financial Performance - PagBank's revenue grew by 18% year over year, reaching 5.1 billion reals ($940 million), while profits increased by 7% to 537 million reals ($98.7 million) [3][4]. - Deposits increased by 9% in local currency, and the loan portfolio expanded by 11%, indicating solid growth in a challenging economic environment [4]. Market Valuation - PagSeguro has a market capitalization of $2.8 billion and reported a profit of $405 million over the last 12 months, resulting in a low P/E ratio of approximately 6.9, suggesting the stock is undervalued [5]. - The company offers a modest dividend yield of 1.5%, further enhancing its attractiveness as an investment [6].
Why PagSeguro Stock Plummeted Today