3 models fit Afya Limited Class A Common Shares and they partly agree: 2 of 3 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Gold80
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionAfya Limited Class A Common Shares (AFYA)
Fair value (3 models)
$31.80
ACCE price target
$17.00
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously $30.18 since 13 Oct 2026, 00:00 CEST.
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Price used: $15.09 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, EV/EBITDA comparison, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
52.5% below
+110.7% to fair value
ACCE score
75
out of 100
Analysts
25% buy
8 covering
P/E
9.1x
forward 7.9x
1-year return
+0.3%
Dividend yield
4.40%
Afya Limited Class A Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Afya runs medical schools and a physician-focused digital platform in Brazil, where it enrolls students in its own campuses and sells continuing education and clinical tools to doctors. The moat is regulatory and local: accredited medical seats are scarce in Brazil and expensive to replicate, and that scarcity supports the 64.0% gross margin and 30.6% operating margin. Revenue growth of 5.7% is modest, so the case rests on margin durability and cash generation rather than top-line acceleration. At a trailing P/E of 8.9 and a forward P/E of 7.9, the market is pricing in little growth, which makes the valuation gap the first thing to test. Worth a deeper look to check whether Brazilian enrollment and regulatory policy support that margin profile.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
high
Extreme short interest
Short interest is 41.7% of float, which signals strong bearish conviction or squeeze risk. Position sizing should reflect the chance of sharp, unpredictable moves in either direction.
moderate
Slowing revenue growth
Revenue grew 5.7% year over year against a 24.7% five-year CAGR, a sharp deceleration. Earnings growth of 17.6% is holding up better than the top line.
AI research notes
AI-assisted·How I use AIWritten Oct 13, 2026 · figures from 2026-10-12 · prices to Oct 23, 2026
Why it could do well
At a forward P/E of 7.9x, the stock trades far below the sector median of 18.1x.
Free cash flow of BRL 1.0B over the last 12 months implies a 15.9% free cash flow yield at today's price.
Consensus fair value of $30.18 sits 103.3% above the $14.85 share price, though only two of three valuation models feed it.
Why it could disappoint
Revenue grew just 5.7% over the past year, well below its 24.7% five-year average pace.
Return on invested capital of 7.6% is modest, and the latest earnings missed expectations by 2.2%.
Only 2 of 8 analysts rate the stock Buy or Strong Buy, and the mean target of $17.68 is 19.1% above the price.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 11, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where AFYA's valuation models land
Price
$15.09
Model fair value
$31.80
Model range
$25.72 to $36.79
Fair value $31.80
Price $15.09
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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