Is Nu Holdings Ltd. overvalued or undervalued?

As of 15 November 2024, the valuation grade for Nu Holdings Ltd. has moved from expensive to fair. Based on the current analysis, the company appears to be fairly valued. The P/E ratio stands at 27, while the PEG ratio is notably low at 0.42, indicating potential for growth relative to its price. Additionally, the EV to Sales ratio is 7.13, which is relatively high but consistent with its growth prospects.
When compared to peers, Cisco Systems, Inc. has a P/E ratio of 24.57, and Accenture Plc shows a P/E of 26.54, both of which are in the fair to attractive range, suggesting that Nu Holdings is competitively positioned within its industry. The company's recent stock performance has been strong, with a year-to-date return of 19.11%, outpacing the S&P 500's 2.44% during the same period, reinforcing the notion that it is fairly valued given its growth potential.