We’ve recently updated our valuation analysis.

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

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

NU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Book Ratio vs Peers

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

The above table shows the PB ratio for NU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average1.1x
USB U.S. Bancorp
1x5.5%US$47.0b
PNC PNC Financial Services Group
1.1x-0.9%US$47.4b
FCNC.A First Citizens BancShares
1x-82.1%US$18.3b
FITB Fifth Third Bancorp
1.1x0.6%US$17.3b
NU Nu Holdings
6.1x50.9%US$31.8b

Price-To-Book vs Peers: NU is expensive based on its Price-To-Book Ratio (6.1x) compared to the peer average (1.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.1%
n/an/an/a
No. of CompaniesPB048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a1.1%
n/an/an/a
No more companies

Price-To-Book vs Industry: NU is expensive based on its Price-To-Book Ratio (6.1x) compared to the US Banks industry average (0.9x)


Price to Book Ratio vs Fair Ratio

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

NU PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio6.1x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate NU's Price-To-Book Fair Ratio for valuation analysis.


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 ($6.75) is trading above our estimate of fair value ($2.21)

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


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$6.74
US$7.62
+13.0%
32.5%US$12.40US$3.00n/a17
May ’24US$5.36
US$7.02
+31.0%
35.2%US$12.50US$3.00n/a18
Apr ’24US$4.76
US$7.02
+47.4%
34.1%US$12.50US$3.00n/a18
Mar ’24US$4.86
US$7.06
+45.2%
34.7%US$12.50US$3.00n/a18
Feb ’24US$4.77
US$6.75
+41.5%
40.7%US$12.40US$3.00n/a18
Jan ’24US$4.07
US$6.93
+70.3%
38.5%US$12.40US$3.00n/a18
Dec ’23US$4.36
US$7.01
+60.7%
37.8%US$12.40US$3.30n/a19
Nov ’23US$5.09
US$7.12
+40.0%
41.3%US$12.50US$3.30n/a17
Oct ’23US$4.40
US$7.21
+63.8%
40.9%US$12.50US$3.30n/a17
Sep ’23US$4.90
US$7.25
+47.9%
43.4%US$12.50US$3.30n/a17
Aug ’23US$4.05
US$7.36
+81.8%
45.9%US$14.00US$3.30n/a17
Jul ’23US$3.91
US$7.79
+99.3%
43.9%US$14.00US$3.30n/a17
Jun ’23US$3.82
US$8.43
+120.7%
35.8%US$14.00US$4.00n/a17
May ’23US$6.01
US$10.09
+68.0%
32.2%US$16.00US$4.00US$5.3617
Apr ’23US$8.06
US$10.32
+28.1%
31.7%US$16.00US$4.00US$4.7617
Mar ’23US$7.92
US$10.69
+35.0%
29.8%US$16.00US$4.00US$4.8617
Feb ’23US$7.56
US$11.57
+53.1%
20.6%US$16.00US$7.50US$4.7715
Jan ’23US$9.38
US$9.00
-4.1%
0%US$9.00US$9.00US$4.071

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


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