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Direcional Engenharia S.A. (DIRR3) Fair Value & Analysis

Real Estate · BR · Market cap R$6.8B (≈ $1.3B) · ISIN BRDIRRACNOR0

What is Direcional Engenharia S.A. really worth?

DE Direcional Engenharia S.A. DIRR3 · SA
PriceR$11.47
Fair ValueR$19.91
Upside+73.6%
Quality47/100

Below-average quality, trading 42% below our fair value of R$19.91.

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Strengths

Solidly profitable · 18.2% net margin
Moderate debt · generates free cash flow
Ranks above peers (9/14)
Wide moat 73/100

Risks

!Expensive Growth (revenue 5y +23.7 %/yr)
Evidence: High Range R$10.32 – R$29.48

Fair value as of: Aug 18, 2026

From 26 valuation models · updated 17 days ago

Share price −1.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The model range is unusually wide (R$10.32 to R$29.48). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.

Price vs Fair Value (5 years)

R$17.04 R$1.74 Fair Value R$19.91 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 18, 2026.

How to read this chart

60‑month range R$1.74 – R$17.04 · fair‑value band R$10.32 – R$29.48 · the R$11.47 price screens below the R$19.91 fair value. Dashed = 300-day average. As of Aug 18, 2026.

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Analysis

Direcional Engenharia S.A. (DIRR3) currently trades at R$11.47, while our model-based Fair Value estimate is R$19.91, implying the stock looks roughly 42.4% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Real Estate sector. Bull case: the Growth Earnings group reads highest at a median of R$43.24 per share, and 19 of the 26 models we run sit above the R$11.47 price. Bear case: the Asset-Based group reads lowest at R$2.47, and 7 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Direcional Engenharia S.A. generated revenue of R$4.6B at a net margin of 18.2%. Revenue grew 30.2% year over year. It earns a return on equity of 43.0%. Net debt stands at R$1.6B. Fundamentals as of Aug 18, 2026

Our scenario range runs from R$10.32 (bear case) to R$29.48 (bull case); at R$11.47, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at −19% fair-value upside, at 74%, DIRR3 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly R$1.08 per share, which is 5.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
EPV R$11.87 R$14.14 R$16.09 74
FCF DCF R$4.21 R$8.40 R$20.28 73
Growth DCF R$3.88 R$9.45 R$19.80 72
All 26 models by family
DCF Models
FCF DCF R$4.21 R$8.40 R$20.28 73
Owner Earnings R$20.54 R$48.53 R$105.12 70
5Y Revenue Exit R$4.69 R$11.13 R$23.78 67
5Y EBITDA Exit R$11.49 R$25.74 R$52.11 70
5Y P/E Exit R$16.86 R$41.66 R$74.24 67
10Y Revenue Exit R$4.24 R$12.00 R$20.99 63
10Y EBITDA Exit R$9.21 R$24.73 R$54.18 62
10Y P/E Exit R$12.92 R$34.79 R$73.94 58
Earnings-Based
Graham-Dodd R$10.32 R$71.98 R$101.02 63
Lynch FV R$21.88 R$31.25 R$40.63 61
PEG = 1.0 R$21.88 R$31.25 R$40.63 57
EPV R$11.87 R$14.14 R$16.09 74
Dividend Discount
Gordon GGM R$24.50 R$48.82 R$73.93 67
DDM Multi-Stage R$24.50 R$42.19 R$51.54 67
Multiples
P/E Multiple R$25.05 R$33.39 R$41.74 63
P/S Multiple R$7.52 R$10.02 R$12.53 58
P/B Multiple R$11.06 R$14.74 R$18.43 55
EV/EBIT R$21.39 R$29.35 R$37.30 66
EV/EBITDA R$14.84 R$20.61 R$26.37 67
EV/Revenue R$4.55 R$7.55 R$10.56 52
Asset-Based
NCAV (Graham) R$1.84 R$2.47 R$3.69 54
Growth DCF
Growth DCF R$3.88 R$9.45 R$19.80 72
Rev-Margin DCF R$4.69 R$12.08 R$23.20 68
Economic Profit
Residual Income R$8.64 R$10.18 R$38.95 64
ROIC Compounder R$15.25 R$22.78 R$33.03 70
Growth Earnings
Growth-Adj P/E R$30.27 R$43.24 R$56.21 67

Widest divergence: Growth Earnings (R$43.24) versus Asset-Based (R$2.47). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 7.2
P/S ratio 1.31 P/E × margin
EPS (TTM) R$1.59 price ÷ EPS = P/E 7.2
Net margin 18.2% FY2025
Return on equity 43.0% TTM
Return on assets (EBIT) 5.7% avg 5y
More key figures
Profitability
Operating margin 23.7% TTM
Growth
Revenue (TTM) R$4.6B TTM
Revenue growth (YoY) +30.2% 3y avg +26.2%
EPS growth (YoY) +29.0%
Balance sheet & cash flow
Free cash flow R$231M FY2025
Net debt R$1.6B FY2025 · ≈ 7.1 yrs of FCF

Figures from reported company fundamentals · as of Aug 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 44 · Market factors (momentum, volatility) 33

Profitability 52
Margins and returns on capital today
Quality Growth 62
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 43
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 8
Distance to the 52-week high (market factor)
Net Issuance 52
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Direcional Engenharia S.A. engages in the development and construction of affordable and mid-range residential real estate projects primarily in Brazil. The company focuses on the development, construction, and sale of housing units for low-income and middle-income families. The company was founded in 1981 and is based in Belo Horizonte, Brazil.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Direcional Engenharia S.A. reported revenue of R$4.3B in FY2025 versus R$1.8B in FY2021, a compound +25.0%/yr. Reported net income was R$789M in FY2025, compounding +52.3%/yr from FY2021.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
R$4.3B
Latest YoY
+29.7%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.7%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.9%
Value creation/yr (5Y, in BRL) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in BRL: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+42.8% (42.8 + 0.0)
Revenue +25.0%/yr
FY21 R$1.8B
FY22 R$2.2B
FY23 R$2.4B
FY24 R$3.3B
FY25 R$4.3B
Net income +52.3%/yr
FY21 R$147M
FY22 R$190M
FY23 R$332M
FY24 R$638M
FY25 R$789M
Character of growth · EPS growth decomposed (2014-2025) +12.7 % p.a.
Revenue per share +5.9 %

of which total revenue +7.4 % · buybacks/dilution −1.4 %

EBIT margin +5.3 %
Tax rate +0.2 %
Residual (interest, one-offs) +0.9 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Direcional Engenharia S.A. Fair Value". https://www.fairvalue-calculator.com/stock/DIRR3

Peer Group

Real Estate - Development · 567 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside +74% · Above median
Return on equity (TTM) 43% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 18% · Above median
Operating margin (TTM) 24% · Above median
Revenue growth 30% · Above median
Dividend yield (TTM) 22.6% · Top 25%
Debt / equity 1.30× · Higher than 75% of peers

Valuation Multiples vs Real Estate - Development median · lower = cheaper

P/E (TTM) 7.2× · Cheaper than median
P/B 3.52× · Pricier than 75% of peers
P/S (TTM) 1.46× · Pricier than median
P/FCF 5.7× · Pricier than 75% of peers
EV/EBITDA 6.9× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 45
FUTURE100 · sector 0
PAST100 · sector 11
HEALTH35 · sector 85
DIVIDEND100 · sector 53

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Real Estate - Development stocks, each showing price versus our Fair Value estimate (as of Aug 18, 2026).

Stock Price Fair Value vs Fair Value
Sun Hung Kai Properties Limited 80016 HK$109.70 HK$88.93 −19%
China Resources Land Limited 1109 HK$35.24 HK$72.16 +105%
Vinhomes Joint Stock Company VHM 71,700 VND 109,431 VND +53%
CK Asset Holdings 1113 HK$47.34 HK$68.85 +45%
Hongkong Land Holdings H78 $8.20 $1.52 −81%
DLF Limited DLF ₹667.10 ₹170.24 −74%
China Overseas Land & Investment Limited 0688 HK$13.76 HK$22.92 +67%
Macrotech Developers Limited LODHA ₹1,244 ₹583.42 −53%
Sino Land Company 0083 HK$10.33 HK$6.99 −32%
PT Pantai Indah Kapuk Dua Tbk, PANI 5,925 IDR 1,325 IDR −78%

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Frequently asked questions

Is Direcional Engenharia S.A. (DIRR3) overvalued or undervalued?
As of Aug 18, 2026, our model estimates a fair value of R$19.91 versus a price of R$11.47, about +74% upside (undervalued).
What is the fair value of DIRR3?
Our model-based fair value for Direcional Engenharia S.A. is R$19.91 (as of Aug 18, 2026), built from audited fundamentals. The current price: R$11.47.
What is the quality score of DIRR3?
Direcional Engenharia S.A. has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Direcional Engenharia S.A. (DIRR3)?
Direcional Engenharia S.A. reported trailing-twelve-month revenue of about R$4.6B (latest available figure, as of Aug 18, 2026).
What is the net profit margin of DIRR3?
The net profit margin of Direcional Engenharia S.A. is about 18.2%, meaning it keeps roughly 18.2% of revenue as net income. Based on the latest reported figures.
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