Magazine Luiza (BSP:MGLU3) Margin of Safety % (DCF FCF Based): 99.24% (As of Jun. 26, 2026)


BSP:MGLU3 Magazine Luiza SA BSP:MGLU3
63 GF Score
Price R$4.42
GF Value R$10.16
Valuation Possible Value Trap
! 6 Warning Signs
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What is Magazine Luiza Margin of Safety % (DCF FCF Based)?

Magazine Luiza BSP:MGLU3 +1.38% 63 Margin of Safety % (DCF FCF Based) is 99.24% as of Jun. 26, 2026. GuruFocus rates BSP:MGLU3 with a GF Score™ of 63/100 and a GF Value™ of R$10.16 (Possible Value Trap). The stock has 6 warning signs investors should review.

Margin of Safety % (DCF FCF Based) = (Intrinsic Value: DCF (FCF Based) - Current Price) / Intrinsic Value: DCF (FCF Based).

Note: Discounted FCF model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-26), Magazine Luiza's Predictability Rank is 2-Stars. Magazine Luiza's intrinsic value calculated from the Discounted FCF model is R$1.30 and current share price is R$4.42. Consequently,

Magazine Luiza's Margin of Safety % (DCF FCF Based) using Discounted FCF model is 99.24%.

BSP:MGLU3 vs CASY, WSM, ULTA: Margin of Safety % (DCF FCF Based) Comparison

For the Specialty Retail subindustry, Magazine Luiza's Margin of Safety % (DCF FCF Based), along with its competitors' market caps and Margin of Safety % (DCF FCF Based) 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.

Magazine Luiza Margin of Safety % (DCF FCF Based) vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Magazine Luiza's Margin of Safety % (DCF FCF Based) distribution charts can be found below:

* The bar in red indicates where Magazine Luiza's Margin of Safety % (DCF FCF Based) falls into.


BSP:MGLU3
63GF Score
Magazine Luiza SA BSP:MGLU3
Margin of Safety % (DCF FCF Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Magazine Luiza Margin of Safety % (DCF FCF Based) Calculation

Magazine Luiza's Margin of Safety % (DCF FCF Based) for today is calculated as

Margin of Safety % (DCF FCF Based)=(Intrinsic Value: DCF (FCF Based)-Current Price)/Intrinsic Value: DCF (FCF Based)
=(585.06-4.42)/585.06
=99.24 %

* 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.

The intrinsic value is calculated from the Discounted FCF model with default parameters. The calculation method is the same as Discounted Earnings model except free cash flow are used in the calculation instead of earnings per share.

What does a Margin of Safety % (DCF FCF Based) of 99.24% mean?
Magazine Luiza (BSP:MGLU3) has a Margin of Safety % (DCF FCF Based) of 99.24% as of Jun. 26, 2026. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Magazine Luiza.
Is Magazine Luiza's Margin of Safety % (DCF FCF Based) too high?
Magazine Luiza's current Margin of Safety % (DCF FCF Based) is 99.24%. Overall, Magazine Luiza has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Magazine Luiza's Margin of Safety % (DCF FCF Based) compare to CASY and WSM?
Magazine Luiza's Margin of Safety % (DCF FCF Based) of 99.24% can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF FCF Based) for a Retail - Cyclical company?
A good Margin of Safety % (DCF FCF Based) depends on the Retail - Cyclical industry context. However, Margin of Safety % (DCF FCF Based) 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 Margin of Safety % (DCF FCF Based) mean?
A high Margin of Safety % (DCF FCF Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF FCF Based) is the percent difference between the current price and the intrinsic DCF FCF price. View historical data on Magazine Luiza. Magazine Luiza's current Margin of Safety % (DCF FCF Based) is 99.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magazine Luiza stock overvalued right now?
Based on GuruFocus' analysis, Magazine Luiza (BSP:MGLU3) is currently considered Possible Value Trap. The stock's GF Value™ is R$10.16, compared to a current price of R$4.42 — trading 56.5% below its estimated fair value. The current Margin of Safety % (DCF FCF Based) is 99.24%. Magazine Luiza's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF FCF Based) calculated?
Margin of Safety % (DCF FCF Based) is calculated from a company's financial statements. For Magazine Luiza (BSP:MGLU3), the current Margin of Safety % (DCF FCF Based) is 99.24% as of Jun. 26, 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 Magazine Luiza (BSP:MGLU3) Overvalued in 2026?

Based on GuruFocus' analysis, Magazine Luiza stock appears to be undervalued. The current stock price of R$4.42 is trading 56.5% below its estimated GF Value™ of R$10.16. GuruFocus considers Magazine Luiza to be Possible Value Trap.

Key valuation signals for BSP:MGLU3:

  • Margin of Safety % (DCF FCF Based): 99.24%
  • GF Value™: R$10.16 vs. price of R$4.42 (56.5% below fair value)
  • GF Score™: 63/100 with 6 warning signs

No single metric tells the full story. See the BSP:MGLU3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Magazine Luiza Business Description

Other Exchanges MGLUY:USA
Address Rua Arnulfo de Lima, 2385 - Vila Santa Cruz, Franca, SP, BRA, 14403-471
Magazine Luiza SA is engaged in retail sales, through physical stores, e-commerce, and its SuperApp, which is an application that offers products and services from its subsidiaries, as well as from commercial partners (sellers) through the marketplace platform. Its operations include four segments, Retail segment: substantially resale of goods and services in the Company's stores, electronic commerce, and food delivery management platform; Financial operations: through the joint venture Luizacred, whose main purpose is to provide credit to the Company's customers for the purchase of products; Insurance operations, and Other services. The company derives maximum revenue from the Retail segment.
63GF Score

Get the complete analysis for BSP:MGLU3

Margin of Safety % (DCF FCF Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$4.42
Price
R$10.16
GF Value