Totvs SA
BOVESPA:TOTS3

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Totvs SA
BOVESPA:TOTS3
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Price: 31.86 BRL 2.12% Market Closed
Market Cap: R$19.1B

EV/GP

4.6
Current
16%
Cheaper
vs 3-y average of 5.5

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
4.6
=
Enterprise Value
R$22.8B
/
Gross Profit
R$4.1B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
4.6
=
Enterprise Value
R$22.8B
/
Gross Profit
R$4.1B

Valuation Scenarios

Totvs SA is trading below its 3-year average

If EV/GP returns to its 3-Year Average (5.5), the stock would be worth R$37.84 (19% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+26%
Average Upside
15%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 4.6 R$31.86
0%
3-Year Average 5.5 R$37.84
+19%
5-Year Average 5.8 R$40.19
+26%
Industry Average 5 R$34.24
+7%
Country Average 4.9 R$33.68
+6%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
BR
Totvs SA
BOVESPA:TOTS3
18.7B BRL 4.6 21.2
US
Microsoft Corp
NASDAQ:MSFT
3.1T USD 14.2 24.6
US
Oracle Corp
NYSE:ORCL
494B USD 13.6 30.5
US
Palo Alto Networks Inc
NASDAQ:PANW
147.8B USD 19.9 99.3
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
115.4B USD 30.8 -710.4
US
ServiceNow Inc
NYSE:NOW
94.5B USD 8.5 53.8
US
VMware Inc
XETRA:BZF1
58B EUR 6.4 47.9
US
Fortinet Inc
NASDAQ:FTNT
64.1B USD 11.2 34.6
US
Xperi Holding Corp
LSE:0M2A
54.6B USD 0 491.7
CN
Knowledge Atlas Technology JSC Ltd
HKEX:2513
382.1B HKD 1 115.2 -70.8
CN
MiniMax Group Inc
HKEX:100
217.8B HKD 1 516.9 -14.8
P/E Multiple
Earnings Growth PEG
BR
Totvs SA
BOVESPA:TOTS3
Average P/E: 100.4
21.2
25%
0.8
US
Microsoft Corp
NASDAQ:MSFT
24.6
18%
1.4
US
Oracle Corp
NYSE:ORCL
30.5
37%
0.8
US
Palo Alto Networks Inc
NASDAQ:PANW
99.3
50%
2
US
CrowdStrike Holdings Inc
NASDAQ:CRWD
Negative Multiple: -710.4 N/A N/A
US
ServiceNow Inc
NYSE:NOW
53.8
54%
1
US
V
VMware Inc
XETRA:BZF1
47.9
39%
1.2
US
Fortinet Inc
NASDAQ:FTNT
34.6
15%
2.3
US
Xperi Holding Corp
LSE:0M2A
491.7
N/A N/A
CN
K
Knowledge Atlas Technology JSC Ltd
HKEX:2513
Negative Multiple: -70.8 N/A N/A
CN
MiniMax Group Inc
HKEX:100
Negative Multiple: -14.8 N/A N/A

Market Distribution

In line with most companies in Brazil
Percentile
47th
Based on 434 companies
47th percentile
4.6
Low
0.3 — 3.1
Typical Range
3.1 — 6.9
High
6.9 —
Distribution Statistics
Brazil
Min 0.3
30th Percentile 3.1
Median 4.9
70th Percentile 6.9
Max 121

Totvs SA
Glance View

Totvs SA, rooted in the vibrant business ecosystem of Brazil, has carved a significant niche as a leading enterprise software company. Established in 1983, Totvs has grown to become synonymous with Business Intelligence and management solutions across Latin America. Its journey is a story of strategic focus on understanding the specific needs of emerging markets and tailoring its enterprise solutions to fit the unique contours of various sectors including manufacturing, financial services, and agribusiness. By focusing on these segments, which traditionally have been underserved by global technology giants, Totvs has utilized its home-field advantage to deliver robust, locally-adapted software solutions that streamline operations and drive efficiency. This customer-centric approach has not only bolstered its presence but has deeply integrated its services into the very fabric of its clients’ business processes. The financial heartbeat of Totvs is driven by its licensing model, cloud subscriptions, and diversified services. Revenue flows through a mix of recurring licensing fees, which include traditional on-premise licenses and a growing cloud subscription base as businesses increasingly transition to digital ecosystems. The cloud element is particularly pivotal, as it aligns with global trends toward SaaS models and ensures a steady stream of income while enhancing customer retention through scalable and flexible solutions. Additionally, Totvs offers consulting, support, and implementation services, which weave into their core software offerings and provide a complete package for business transformation. This blend of license-driven income and service revenue not only stabilizes Totvs’ financial performance but also positions it as an indispensable partner in the technological evolution of its clients.

TOTS3 Intrinsic Value
30.39 BRL
Overvaluation 5%
Intrinsic Value
Price R$31.86
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