PagSeguro DigitalPAGS +0.11%90 Pretax Margin % is 12.40% as of Mar. 2026, which is 11% below its 10-year median of 13.95. GuruFocus rates PAGS with a GF Score™ of 90/100 and a GF Value™ of $11.93 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,823 Software companies, PagSeguro Digital ranks better than 75.38% on this metric.
The historical rank and industry rank for PagSeguro Digital's Pretax Margin % or its related term are showing as below:
PAGS'
s Pretax Margin % Range Over the Past 10 Years
Min: 11.47 Med: 13.95 Max: 33.51
Current: 12.59
PAGS's Pretax Margin % is ranked better than 75.38% of 2823
companies
in the Software industry
Industry Median: 3.54
vs PAGS: 12.59
PagSeguro Digital (NYSE:PAGS) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
PagSeguro Digital Pretax Margin % Related Terms
PagSeguro Digital Pretax Margin % Historical Data
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The historical data trend for PagSeguro Digital's Pretax Margin % 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.
PAGS vs CALX, EEFT, STNE: Pretax Margin % Comparison
For the Software - Infrastructure subindustry, PagSeguro Digital's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
PagSeguro Digital Pretax Margin % vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital's Pretax Margin % 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.
PagSeguro Digital (PAGS) has a Pretax Margin % of 12.40% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on PagSeguro Digital and its competitors. This is 11% below median its historical median of 13.95. Over the past decade, PagSeguro Digital's Pretax Margin % has ranged from 11.47 to 33.51. According to the industry distribution chart, PagSeguro Digital ranks #695 out of 2823 companies in the Software industry, placing it in the top 24.6%.
Is PagSeguro Digital's Pretax Margin % too high?
PagSeguro Digital's current Pretax Margin % of 12.40% is 11% below median its 10-year median of 13.95. Over the past 10 years, this metric has ranged from a low of 11.47 to a high of 33.51. The Software industry median Pretax Margin % is 3.54. PagSeguro Digital's value of 12.40% is 250.3% above this industry median. Based on the distribution chart, PagSeguro Digital ranks #695 out of 2823 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, PagSeguro Digital has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PagSeguro Digital's Pretax Margin % compare to CALX and EEFT?
According to the Software industry distribution chart, PagSeguro Digital ranks #695 out of 2823 companies for Pretax Margin %. This places PagSeguro Digital in the top 25% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.54. PagSeguro Digital's value of 12.40% is 250.3% above this benchmark. Historically, PagSeguro Digital's own Pretax Margin % has ranged from 11.47 to 33.51 over the past decade. While the company's 10-year median is 13.95 vs. the industry median of 3.54, PagSeguro Digital has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.54, based on 2,823 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. PagSeguro Digital's current Pretax Margin % of 12.40% is 250.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on PagSeguro Digital and its competitors. For the Software industry, the median Pretax Margin % is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PagSeguro Digital's current Pretax Margin % is 12.40%, which is 11% below median its own 10-year median of 13.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PagSeguro Digital stock overvalued right now?
Based on GuruFocus' analysis, PagSeguro Digital (PAGS) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.93, compared to a current price of $8.77 — trading 26.5% below its estimated fair value. The current Pretax Margin % is 12.40%, which is 11% below median its 10-year median of 13.95 and 250.3% above the Software industry median of 3.54. PagSeguro Digital's overall GF Score™ is 90/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For PagSeguro Digital (PAGS), the current Pretax Margin % is 12.40% as of Mar. 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 PagSeguro Digital (PAGS) Overvalued in 2026?
Based on GuruFocus' analysis, PagSeguro Digital stock appears to be undervalued.
The current stock price of $8.77 is trading 26.5% below its estimated GF Value™ of $11.93.
GuruFocus considers PagSeguro Digital to be Modestly Undervalued.
Key valuation signals for PAGS:
Pretax Margin %: 12.40% (11% below median its 10-year median of 13.95)
GF Value™: $11.93 vs. price of $8.77 (26.5% below fair value)
Industry Position: 250.3% above the Software median (#695 of 2823)
No single metric tells the full story. See the PAGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PagSeguro Digital Ltd is a Brazilian-based company that acts as a provider of financial technology solutions focused on Micro-Merchants, Small Companies and Medium-Sized Companies (SMEs), in Brazil. The company provides a range of solutions and tools such as cash-in and cash-out options and provides access to working capital to help to manage its cash flow. It delivers an end-to-end digital ecosystem to address day-to-day financial needs, including receiving and spending funds and managing and growing businesses for clients. The company also offers the Free PagSeguro Digital Account delivering Cash-In Solutions, Online and In-Person Payment Tools, Online Payment Tools; and Web Check Outs offer tokenization, handling of shipping information, and others.
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