Is Nu Holdings Ltd. overvalued or undervalued?

Oct 20 2025 12:28 PM IST
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As of October 17, 2025, Nu Holdings Ltd. is fairly valued with a P/E ratio of 27, a Price to Book Value of 6.80, and a PEG Ratio of 0.42, outperforming peers like Cisco and Accenture, and delivering a remarkable 241.69% return over the past three years compared to the S&P 500's 81.19%.
As of 17 October 2025, the valuation grade for Nu Holdings Ltd. moved from expensive to fair. The company appears to be fairly valued based on its current metrics. 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 that the stock may be undervalued relative to its growth prospects.

In comparison to peers, Nu Holdings Ltd. has a P/E ratio that is higher than Cisco Systems, Inc. at 23.85 and Accenture Plc at 21.26, indicating that while it is fairly valued, it is priced at a premium relative to these competitors. The company's return over the past three years stands at an impressive 241.69%, significantly outperforming the S&P 500's return of 81.19% in the same period, reinforcing the notion that it may be a solid investment.
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