Is Globant S.A. (GLOB) overvalued or undervalued?
Updated Nov 10, 2026 · hand-researched model · educational, not advice
At a recent price of $47.41, Globant S.A. (GLOB) sits below every lens we ran: our valuation lenses put the business somewhere between $52.90 and $142.87 per share. For a cyclical we value through the cycle we publish a range only (peer multiples and our researched mid-cycle DCF): where in the cycle the business sits decides where in that range it lands, and a single figure would claim we know that precisely. This is an educational model, not a price target or a recommendation.
The valuation discounts Globant S.A.'s projected free cash flows at a weighted-average cost of capital (WACC) of 9.6%, with a long-run terminal growth rate of 2.5%. About 72% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, GLOB's modeled DCF value ranges from about $37.70 to $84.54 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Globant S.A. would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of GLOB's intrinsic value. Figures update as new filings and prices come in.
The assumptions behind GLOB's DCF
| Input | Value | Source |
|---|---|---|
| Base-year revenue | $2,454,900,000 | Globant FY2025 Form 20-F (accession 0001628280-26-012910, filed 2026-02-27): ifrs-full:Revenue FY2025 = $2,454,877K, +1.6% on FY2024's $2,415,689K. Globant is a Luxembourg-domiciled foreign private issuer that reports under IFRS in US dollars and files a 20-F, not a 10-K; calendar fiscal year, so FY2025 is the latest completed year and FY2026 is Year 1. The +1.6% INCLUDES acquisitions (the late-2024 Exusia and Blankfactor deals, $278M of 2024 deal cash, and Omni.Pro from April 2025, $63M), so organic growth was negative; Globant does not publish an organic figure, so I do not quote one. CROSS-CHECK: H1 2026 revenue $1,221.5M vs H1 2025 $1,225.3M (-0.3%), Q2 2026 $614.4M flat YoY (Q2 2026 release). Headcount fell from 30,084 to 27,411 over the same twelve months. |
| Base EBIT margin | 7.0% | Globant FY2025 Form 20-F (accession 0001628280-26-012910, filed 2026-02-27): IFRS profit from operations $171,732K / $2,454,877K = 7.00%. It is AFTER: share-based compensation $77.7M (3.2% of revenue), acquisition-related charges $71.8M (2.9%; of which ~$50.5M is amortization of acquired customer relationships, platforms, non-competes and trademarks per the 20-F intangibles note), and business-optimization (restructuring) costs $52.0M (2.1%). Globant's own non-IFRS adjusted operating margin, which adds all three back, was 15.2% (15.4% in FY2024). Used by the engine only for the cyclical check; the forecast starts from the 2026 guide. CROSS-CHECK: H1 2026 IFRS $71.5M / $1,221.5M = 5.9% (adjusted 13.6%), after a further $32.3M of restructuring in Q2. |
| Forecast revenue growth | -0% → 1% → 2% → 2% → 2% | Assumption — TickerWorth's 5-year explicit forecast |
| Risk-free rate | 5.2% | US 10Y Treasury constant maturity (FRED DGS10): 5.24% on 2026-10-01, the latest published observation. Shared by every researched model in this tracker. |
| Beta | 1.10 | Assumption — Yahoo Finance / yfinance published 5Y-monthly beta + own regressions: NORMALIZED UP from the published 5Y-monthly 0.975 to 1.10 - CONSERVATIVE, it raises WACC and lowers the value. Recomputed independently: 5Y monthly vs the S&P 500 = 0.91 (59 returns), 2Y WEEKLY = 1.23 (104 returns). Two reasons to lean on the recent regime: (1) the 5-year monthly window is dominated by Globant's pre-2025 hypergrowth years and barely registers the AI-disruption de-rating (52-week range $27.56-$72.10, a ~17% fall on 2026-08-14); (2) no separate country-risk premium is added, although ~21% of revenue is Latin American and most of the delivery workforce sits in Argentina, Colombia, Mexico and other LatAm countries. 1.10 is roughly the midpoint of the published figure and the 2Y weekly. Using the published 0.975 would add ~$4.80/share; 1.23 would take ~$4.30 off. |
| Terminal growth | 2.5% | Assumption — house default: House default 2.5% (roughly long-run nominal GDP), kept for comparability. NOT obviously conservative here: Globant's revenue is guided to fall in 2026 and the whole bear case is that AI permanently shrinks the pool of billable engineering hours, in which case perpetual growth could be below zero. 2.0% takes ~$3.20/share off; 1.5% ~$6.10. Must stay well below the ~9.6% WACC; it does. |
| Diluted shares | 43M | Globant Q2 2026 results release, 6-K Ex-99.1 (accession 0001104659-26-095916, furnished 2026-08-13): Q2 2026 weighted-average diluted shares 43,228K (IFRS income statement; H1 2026 43,405K, FY2025 45,005K). Globant shares trade directly on the NYSE (no ADR, ratio 1:1). The count is falling: $50M of buybacks in Q1 2026 and $25M in Q2 completed the prior program, and a new $125M authorization over six quarters is in place (Q2 release). yfinance shows 43.18M outstanding now. SBC dilution (~$75M a year, ~4.9% of today's market cap) is a real cost and stays expensed in EBIT. |
| Market price | $47.41 | Delayed quote · as of 2026-11-10 05:00 UTC |
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