Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionStoneCo Ltd. Class A Common Shares (STNE)
Fair value
Not available
ACCE price target
$15.50
Rating
Not rated
Horizon
12 months
ACCE price target published on 10 Oct 2026, 00:00 CEST; previously $11.20 since 28 Sept 2026, 00:00 CEST.
Price used: $11.48 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
ACCE score
53
out of 100
Analysts
53% buy
17 covering
P/E
4.5x
forward 10.8x
1-year return
-39.2%
Dividend yield
0.00%
StoneCo Ltd. Class A Common Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
StoneCo provides card acceptance, software and banking services to small and mid-sized Brazilian businesses, with a strong focus on service and local presence. Embedded software and credit for merchants raises switching costs. Growth depends on cross-selling financial products to its merchant base. Revenue grew 1.6% with a 39.6% operating margin and 34.0% ROE, at 4.8x trailing earnings and 10.8x forward.
⚠ Investor warnings · 3 flagsAI-assisted·How I use AI
high
Earnings collapse and margin deterioration
Earnings down 16.6% YoY while revenue grew only 1.6%. Operating margin of 39.6% masks a sharp quality decline: ACCE M score fell from 23 to 23, but the overall score dropped 7 points in 90 days, signalling deteriorating fundamentals.
high
Leverage spike with slowing growth
Debt/Equity ratio of 1.88 is elevated. Revenue growth has decelerated to 1.6% YoY and turned negative QoQ at -4.0%. High leverage on decelerating topline creates refinancing risk.
moderate
Score collapse and valuation disconnect
ACCE score fell 7 points in 90 days (64 to 57). Fair value estimate of $15.50 sits 24% above current price, yet M score of 23/100 signals quality concerns. Valuation model and quality metrics are misaligned.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
StoneCo trades at 4.8x trailing P/E with 24.7% net margin and 34.0% ROE, suggesting deep undervaluation.
Free cash flow yield of 49.2% and aggressive 9.4% share buybacks signal management confidence and capital discipline.
Analyst consensus targets 24.2% upside with 53% buy ratings, and the company beat earnings by 2.2% last quarter.
Why it could disappoint
Revenue growth collapsed to 1.6% year over year from a 13.9% five-year average, signaling structural deceleration.
Free cash flow of BRL 7.1B masks working capital strain typical of fintech credit books, a structural concern.
Debt to equity of 1.88 combined with Brazil's high rates creates funding cost pressure on a thin-margin business.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 12, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
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Valuation
INVESTOR
Where STNE's valuation models land
Price
$11.48
Model fair valueConfidence: low
about $40.44
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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See what each model says, the assumptions behind it, the bad, normal and good cases, and why the fair value changed.
Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores
StoneCo's ACCE composite score rose from 64 to 79. Quality sits at 91/100, Value at 83/100, and trailing P/E is just 3.9. Here's what moved the needle.
2026-06-22
Recommendation history, last 12 months
Date
Type
New
Previous
Price
10 Oct 2026, 00:00 CEST
ACCE price target
$15.50
$11.20
$12.46
28 Sept 2026, 00:00 CEST
ACCE price target
$11.20
first publication
$9.30
Price
-39.6% · 1Y
Ask anything about STNE
Answered from StoneCo Ltd. Class A Common Shares fundamentals + recent valuations. Every number shows its source and date.