XP Inc.

NasdaqGS:XP Stock Report

Market Cap: US$8.9b

XP Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 XP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: XP ($15.67) is trading below our estimate of fair value ($19.42)

Significantly Below Fair Value: XP is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for XP. This is calculated by dividing XP's market cap by their current earnings.
What is XP's PE Ratio?
PE Ratio11.1x
EarningsR$4.38b
Market CapR$51.61b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for XP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.1x
PJT PJT Partners
34.2xn/aUS$6.4b
FUTU Futu Holdings
21.5x22.8%US$12.0b
SF Stifel Financial
19x11.3%US$11.6b
FRHC Freedom Holding
21.8xn/aUS$7.1b
XP XP
11.1x12.4%US$8.9b

Price-To-Earnings vs Peers: XP is good value based on its Price-To-Earnings Ratio (11.1x) compared to the peer average (24.1x).

Price to Earnings Ratio vs Industry

How does XP's PE Ratio compare vs other companies in the US Capital Markets Industry?

22 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ADX Adams Diversified Equity Fund
4xn/aUS$2.52b
CET Central Securities
4.5xn/aUS$1.32b
GAM General American Investors Company
4.1xn/aUS$1.16b
MUDS Mudrick Capital Acquisition Corporation II
3.4xn/aUS$401.64m
XP 11.1xIndustry Avg. 23.7xNo. of Companies75PE020406080100+
22 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: XP is good value based on its Price-To-Earnings Ratio (11.1x) compared to the US Capital Markets industry average (23.6x).

Price to Earnings Ratio vs Fair Ratio

What is XP'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.

XP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.1x
Fair PE Ratio18.6x

Price-To-Earnings vs Fair Ratio: XP is good value based on its Price-To-Earnings Ratio (11.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.6x).

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 XP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$15.67
US$23.83
+52.1%
16.4%US$32.96US$18.98n/a11
Nov ’25US$16.77
US$24.39
+45.4%
16.3%US$32.85US$19.92n/a11
Oct ’25US$18.03
US$24.79
+37.5%
18.0%US$34.18US$18.94n/a11
Sep ’25US$18.41
US$24.10
+30.9%
18.0%US$33.12US$18.35n/a11
Aug ’25US$16.63
US$24.38
+46.6%
18.8%US$32.64US$19.08n/a10
Jul ’25US$16.83
US$26.69
+58.6%
13.7%US$32.71US$20.57n/a10
Jun ’25US$18.99
US$28.53
+50.3%
11.1%US$32.69US$21.97n/a10
May ’25US$20.56
US$28.65
+39.3%
10.0%US$31.53US$22.92n/a10
Apr ’25US$25.22
US$30.44
+20.7%
3.6%US$32.75US$28.93n/a10
Mar ’25US$23.91
US$30.68
+28.3%
4.9%US$32.93US$27.65n/a10
Feb ’25US$25.20
US$31.01
+23.0%
4.6%US$33.04US$27.99n/a10
Jan ’25US$26.07
US$29.94
+14.8%
8.3%US$36.01US$26.98n/a10
Dec ’24US$23.92
US$29.92
+25.1%
8.5%US$35.72US$27.06n/a10
Nov ’24US$20.33
US$30.32
+49.2%
9.2%US$35.98US$26.62US$16.7710
Oct ’24US$23.05
US$29.30
+27.1%
16.9%US$35.94US$16.44US$18.0310
Sep ’24US$26.35
US$29.07
+10.3%
16.7%US$36.13US$16.53US$18.4111
Aug ’24US$26.83
US$25.63
-4.5%
21.1%US$36.01US$17.26US$16.6311
Jul ’24US$23.46
US$21.68
-7.6%
21.8%US$28.82US$14.97US$16.8311
Jun ’24US$18.04
US$18.98
+5.2%
14.5%US$23.72US$14.73US$18.9911
May ’24US$14.15
US$18.75
+32.5%
17.7%US$24.94US$13.97US$20.5612
Apr ’24US$11.87
US$19.05
+60.5%
17.5%US$25.83US$14.49US$25.2212
Mar ’24US$11.94
US$19.46
+63.0%
21.6%US$29.08US$15.03US$23.9112
Feb ’24US$17.58
US$25.68
+46.1%
17.1%US$33.10US$18.08US$25.2012
Jan ’24US$15.34
US$26.56
+73.1%
18.9%US$36.14US$17.00US$26.0712
Dec ’23US$17.51
US$30.43
+73.8%
29.6%US$54.63US$22.07US$23.9212
Nov ’23US$19.46
US$31.31
+60.9%
28.9%US$54.32US$22.94US$20.3312

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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