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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
PagSeguro Digital's Sloan Ratio for the quarter that ended in Mar. 2026 was -3.91%.
As of Mar. 2026, PagSeguro Digital has a Sloan Ratio of -3.91%, indicating the company is in the safe zone and there is no funny business with accruals.
PagSeguro Digital (NYSE:PAGS) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Mar. 2026, PagSeguro Digital has a Sloan Ratio of -3.91%, indicating the company is in the safe zone and there is no funny business with accruals.
PagSeguro Digital Sloan Ratio % Related Terms
PagSeguro Digital Sloan Ratio % Historical Data
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The historical data trend for PagSeguro Digital's Sloan Ratio % 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 ATEN, PAYO, STNE: Sloan Ratio % Comparison
For the Software - Infrastructure subindustry, PagSeguro Digital's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, PagSeguro Digital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PagSeguro Digital's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
PagSeguro Digital's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
PagSeguro Digital's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 96.787 (Jun. 2025 ) + 103.391 (Sep. 2025 ) + 92.018 (Dec. 2025 ) + 104.315 (Mar. 2026 ) = $397 Mil.
PagSeguro Digital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 403.113 (Jun. 2025 ) + 407.021 (Sep. 2025 ) + 353.347 (Dec. 2025 ) + 177.832 (Mar. 2026 ) = $1,341 Mil.
PagSeguro Digital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -54.131 (Jun. 2025 ) + -92.795 (Sep. 2025 ) + -128.368 (Dec. 2025 ) + -107.876 (Mar. 2026 ) = $-383 Mil.
* 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 Sloan Ratio % of -3.91% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on PagSeguro Digital and its competitors.
Is PagSeguro Digital's Sloan Ratio % too high?
PagSeguro Digital's current Sloan Ratio % is -3.91%. 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 Sloan Ratio % compare to ATEN and PAYO?
PagSeguro Digital's Sloan Ratio % of -3.91% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Software company?
A good Sloan Ratio % depends on the Software industry context. However, Sloan Ratio % 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 Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on PagSeguro Digital and its competitors. PagSeguro Digital's current Sloan Ratio % is -3.91%. 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 $12.05, compared to a current price of $9.04 — trading 25% below its estimated fair value. The current Sloan Ratio % is -3.91%. PagSeguro Digital's overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For PagSeguro Digital (PAGS), the current Sloan Ratio % is -3.91% 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 $9.04 is trading 25% below its estimated GF Value™ of $12.05.
GuruFocus considers PagSeguro Digital to be Modestly Undervalued.
Key valuation signals for PAGS:
Sloan Ratio %: -3.91%
GF Value™: $12.05 vs. price of $9.04 (25% below fair value)
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.
90GF Score
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