XP (NasdaqGS:XP): Assessing Valuation as Battlefield 6 Launch Sparks Platform Incentive Buzz

XP (NasdaqGS:XP) is drawing attention as Battlefield 6 rolls out new incentives for players. The game is offering extra XP boosts to PlayStation 5 users and unique content for those who pre-order. These perks are sparking conversations about which platform provides the most value at launch.

See our latest analysis for XP.

XP’s share price has seen some volatility lately, with a 1-day drop of 2.77% and a sharp 15.27% slide over the past month. However, it still boasts a robust year-to-date price return of nearly 34%. The total shareholder return over one and five years lags behind, suggesting that while short-term optimism has built, long-term holders have not yet seen sustained gains.

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With XP currently trading at a significant discount to analyst price targets and showing healthy annual growth, the big question is whether the market is undervaluing its future potential or if expectations are already reflected in the price. Is this a genuine buying opportunity, or has the market fully priced in the next chapter of growth?

Most Popular Narrative: 32.7% Undervalued

XP's widely followed valuation perspective now sees its fair value much higher than the current price, setting the stage for potential upside. This view emerges as analyst forecasts for growth rebalance and the multiple applied to future earnings shifts downward.

XP's continued diversification of its product suite, including early-stage growth in insurance, retirement, cards, FX, global investments, and the newly launched consortium business, enables deeper client cross-sell and higher revenue per customer, pointing to meaningful top-line expansion and improved earnings resiliency.

Read the complete narrative.

Curious what bold, market-moving assumptions justify this upside call? The narrative relies on ambitious future earnings growth and margin shifts, plus a surprisingly conservative future profit multiple. Want to see the concrete numbers that fuel expectation for XP's next phase?

Result: Fair Value of $23.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, mounting competition and regulatory changes in Brazil could quickly challenge the optimistic outlook and limit XP's profit and revenue growth trajectory.

Find out about the key risks to this XP narrative.

Build Your Own XP Narrative

If you have a different perspective or want to dive deeper into the numbers yourself, you can craft your own narrative about XP in just a few minutes with Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding XP.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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