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VtexVTEX -1.55%73 Degree of Operating Leverage is 16.85 as of Jun. 2026. GuruFocus rates VTEX with a GF Score™ of 73/100 and a GF Value™ of $7.61 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,710 Software companies, Vtex ranks worse than 90.26% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Vtex's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 16.85. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Vtex's Degree of Operating Leverage or its related term are showing as below:
VTEX's Degree of Operating Leverage is ranked worse than 90.26% of 2710
companies
in the Software industry
Industry Median: 0.61
vs VTEX: 16.85
Vtex (NYSE:VTEX) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Vtex Degree of Operating Leverage Related Terms
Vtex Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Vtex's Degree of Operating Leverage can be seen below:
* 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.
VTEX vs RSKD, PAR, MNTN: Degree of Operating Leverage Comparison
For the Software - Application subindustry, Vtex's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Vtex Degree of Operating Leverage vs Software Industry
For the Software industry and Technology sector, Vtex's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Vtex's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 16.85 mean?
Vtex (VTEX) has a Degree of Operating Leverage of 16.85 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Vtex and its competitors. According to the industry distribution chart, Vtex ranks #2446 out of 2710 companies in the Software industry, placing it in the top 90.3%.
Is Vtex's Degree of Operating Leverage too high?
Vtex's current Degree of Operating Leverage is 16.85. The Software industry median Degree of Operating Leverage is 0.61. Vtex's value of 16.85 is 2662.3% above this industry median. Based on the distribution chart, Vtex ranks #2446 out of 2710 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Vtex has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vtex's Degree of Operating Leverage compare to RSKD and PAR?
According to the Software industry distribution chart, Vtex ranks #2446 out of 2710 companies for Degree of Operating Leverage. This places Vtex in the lower half of its industry. The industry median Degree of Operating Leverage is 0.61. Vtex's value of 16.85 is 2662.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Software company?
The median Degree of Operating Leverage among Software companies is 0.61, based on 2,710 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vtex's current Degree of Operating Leverage of 16.85 is 2662.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Vtex and its competitors. For the Software industry, the median Degree of Operating Leverage is 0.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vtex's current Degree of Operating Leverage is 16.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vtex stock overvalued right now?
Based on GuruFocus' analysis, Vtex (VTEX) is currently considered Significantly Undervalued. The stock's GF Value™ is $7.61, compared to a current price of $3.81 — trading 49.9% below its estimated fair value. The current Degree of Operating Leverage is 16.85 and 2662.3% above the Software industry median of 0.61. Vtex's overall GF Score™ is 73/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Vtex (VTEX), the current Degree of Operating Leverage is 16.85 as of Jun. 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 Vtex (VTEX) Overvalued in 2026?
Based on GuruFocus' analysis, Vtex stock appears to be undervalued.
The current stock price of $3.81 is trading 49.9% below its estimated GF Value™ of $7.61.
GuruFocus considers Vtex to be Significantly Undervalued.
Key valuation signals for VTEX:
Degree of Operating Leverage: 16.85
GF Value™: $7.61 vs. price of $3.81 (49.9% below fair value)
Industry Position: 2662.3% above the Software median (#2446 of 2710)
No single metric tells the full story. See the VTEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vtex provides a software-as-a-service digital commerce platform for enterprise brands and retailers. Its platform enables customers to execute their commerce plan, including building online stores, integrating and managing orders across channels, and creating marketplaces to sell products from third-party vendors. The VTEX platform is designed to be composable and complete, enabling its customers to seamlessly implement, optimize, test, and expand both B2C and B2B digital experiences. It generates maximum revenues from Brazil followed by Latin America and the rest of the world.
73GF Score
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