Is Nu Holdings Ltd. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Nu Holdings Ltd. has moved from attractive to fair, indicating a shift in its perceived value. Based on the current metrics, the company appears to be fairly valued. Key ratios include a P/E ratio of 27, a Price to Book Value of 6.80, and a PEG Ratio of 0.42, which suggests growth potential relative to its price.
In comparison to peers, Nu Holdings Ltd. has a lower P/E ratio than Cisco Systems, Inc. at 23.85 and a significantly lower EV to EBITDA ratio than its peer average, indicating that it may be undervalued relative to some competitors. Notably, the company has outperformed the S&P 500 over various periods, with a year-to-date return of 54.34% compared to the S&P 500's 12.22%, reinforcing its competitive position in the market.