Investment Thesis
dLocal ($DLO ) has established itself as the critical infrastructure for global giants (Amazon, Google, Meta) to operate in highly complex markets. The competitive edge lies in the ability to manage local and cross-border payments with regulatory compliance in more than 40 countries.
Valuation and market gap
The PEG (Price/Earnings to Growth) ratio below 1.0 suggests that the market has not yet fully priced in the resilience of operating margins, which remain healthy at over 20%.
dLocal (DLO) has an aggressive growth profile in emerging markets, trading at an attractive discount to its intrinsic value. Despite operational volatility in 2024, the recovery of margins and the expansion of revenue to the $1B level in 2025 consolidate the undervaluation thesis.
