Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-07-10), Localiza Rent A Car's Beta is 1.6143.
Localiza Rent A Car (BSP:RENT3) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Rental & Leasing Services subindustry, Localiza Rent A Car's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Localiza Rent A Car Beta vs Business Services Industry
For the Business Services industry and Industrials sector, Localiza Rent A Car's Beta distribution charts can be found below:
* The bar in red indicates where Localiza Rent A Car's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Localiza Rent A Car (BSP:RENT3) has a Beta of 1.6143 as of Jul. 10, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Localiza Rent A Car and its competitors.
Is Localiza Rent A Car's Beta too high?
Localiza Rent A Car's current Beta is 1.6143. Overall, Localiza Rent A Car has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Localiza Rent A Car's Beta compare to URI and SUNB?
Localiza Rent A Car's Beta of 1.6143 can be compared against companies in the Business Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Business Services company?
A good Beta depends on the Business Services industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Localiza Rent A Car and its competitors. Localiza Rent A Car's current Beta is 1.6143. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Localiza Rent A Car stock overvalued right now?
Based on GuruFocus' analysis, Localiza Rent A Car (BSP:RENT3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$55.88, compared to a current price of R$39.40 — trading 29.5% below its estimated fair value. The current Beta is 1.6143. Localiza Rent A Car's overall GF Score™ is 94/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Localiza Rent A Car (BSP:RENT3), the current Beta is 1.6143 as of Jul. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Localiza Rent A Car (BSP:RENT3) Overvalued in 2026?
Based on GuruFocus' analysis, Localiza Rent A Car stock appears to be undervalued.
The current stock price of R$39.40 is trading 29.5% below its estimated GF Value™ of R$55.88.
GuruFocus considers Localiza Rent A Car to be Modestly Undervalued.
Key valuation signals for BSP:RENT3:
Beta: 1.6143
GF Value™: R$55.88 vs. price of R$39.40 (29.5% below fair value)
No single metric tells the full story. See the BSP:RENT3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Localiza Rent A Car SA is a car rental service provider with the majority of its operations in Brazil. Through its subsidiaries, the company rents cars to individuals, manages corporate car fleets, sells its decommissioned fleet, and operates a franchise business. The company has two reportable operating segments: Car Rental and Fleet Management. Maximum revenue is generated from the Car Rental segment, which is responsible for car rentals and for stipulating insurance and managing car claims for insurance companies. This segment is also responsible for the administration and granting of franchises and the right to use the Localiza brand in geographically defined markets. Geographically, the company operates across different regions in Latin America.
94GF Score
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