Nu Holdings Ltd.

NYSE:NU Stock Report

Market Cap: US$64.7b

Nu Holdings Valuation

Is NU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NU ($13.32) is trading above our estimate of fair value ($11.48)

Significantly Below Fair Value: NU is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NU?

Key metric: As NU is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NU. This is calculated by dividing NU's market cap by their current earnings.
What is NU's PE Ratio?
PE Ratio36x
EarningsUS$1.78b
Market CapUS$64.70b

Price to Earnings Ratio vs Peers

How does NU's PE Ratio compare to its peers?

The above table shows the PE ratio for NU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.1x
FCNC.A First Citizens BancShares
12.5x-8.2%US$30.7b
USB U.S. Bancorp
15.5x11.6%US$78.6b
PNC PNC Financial Services Group
17.1x12.9%US$81.3b
C Citigroup
19.4x30.6%US$130.9b
NU Nu Holdings
36x29.0%US$64.7b

Price-To-Earnings vs Peers: NU is expensive based on its Price-To-Earnings Ratio (36x) compared to the peer average (16.1x).

Price to Earnings Ratio vs Industry

How does NU's PE Ratio compare vs other companies in the US Banks Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FRCB First Republic Bank
0.02xn/aUS$27.98m
BKGM BankGuam Holding
1xn/aUS$18.48m
SBNY Signature Bank
0.002xn/aUS$2.18m
BCBH.F Caribbean Investment Holdings
0.00001xn/aUS$132.00
No more companies available in this PE range
NU 36.0xIndustry Avg. 12.8xNo. of Companies75PE0612182430+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NU is expensive based on its Price-To-Earnings Ratio (36x) compared to the US Banks industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is NU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio36x
Fair PE Ratio23.9x

Price-To-Earnings vs Fair Ratio: NU is expensive based on its Price-To-Earnings Ratio (36x) compared to the estimated Fair Price-To-Earnings Ratio (23.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NU forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$13.32
US$15.94
+19.7%
16.0%US$19.00US$8.00n/a20
Nov ’25US$14.34
US$15.05
+5.0%
15.1%US$18.50US$8.00n/a20
Oct ’25US$13.43
US$14.93
+11.2%
15.5%US$18.50US$8.00n/a20
Sep ’25US$14.97
US$14.32
-4.3%
16.5%US$18.00US$8.00n/a19
Aug ’25US$11.52
US$13.68
+18.7%
14.9%US$17.00US$8.00n/a19
Jul ’25US$12.36
US$13.02
+5.3%
15.6%US$16.00US$8.00n/a19
Jun ’25US$11.88
US$12.46
+4.9%
16.9%US$16.00US$8.00n/a17
May ’25US$10.88
US$12.54
+15.3%
13.9%US$16.00US$8.50n/a17
Apr ’25US$11.82
US$11.89
+0.6%
18.7%US$16.00US$6.00n/a17
Mar ’25US$11.27
US$11.51
+2.1%
19.3%US$16.00US$6.00n/a17
Feb ’25US$9.01
US$10.50
+16.5%
19.2%US$16.00US$6.00n/a17
Jan ’25US$8.33
US$10.06
+20.8%
20.2%US$16.00US$6.00n/a17
Dec ’24US$8.30
US$10.00
+20.5%
20.4%US$16.00US$6.00n/a17
Nov ’24US$8.30
US$9.52
+14.7%
25.0%US$16.00US$4.00US$14.3417
Oct ’24US$7.25
US$8.52
+17.5%
23.3%US$11.00US$4.00US$13.4316
Sep ’24US$7.11
US$8.41
+18.3%
23.9%US$11.00US$4.00US$14.9716
Aug ’24US$7.91
US$8.22
+4.0%
27.8%US$12.40US$4.00US$11.5217
Jul ’24US$7.89
US$8.03
+1.8%
27.7%US$12.40US$4.00US$12.3617
Jun ’24US$6.83
US$7.62
+11.5%
32.5%US$12.40US$3.00US$11.8817
May ’24US$5.36
US$7.02
+31.0%
35.2%US$12.50US$3.00US$10.8818
Apr ’24US$4.76
US$7.02
+47.4%
34.1%US$12.50US$3.00US$11.8218
Mar ’24US$4.86
US$7.06
+45.2%
34.7%US$12.50US$3.00US$11.2718
Feb ’24US$4.77
US$6.75
+41.5%
40.7%US$12.40US$3.00US$9.0118
Jan ’24US$4.07
US$6.93
+70.3%
38.5%US$12.40US$3.00US$8.3318
Dec ’23US$4.36
US$7.01
+60.7%
37.8%US$12.40US$3.30US$8.3019
Nov ’23US$5.09
US$7.12
+40.0%
41.3%US$12.50US$3.30US$8.3017

Analyst Forecast: Target price is less than 20% higher than the current share price.

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