Is XP, Inc. overvalued or undervalued?

As of 24 April 2025, XP, Inc. has moved from an attractive to a fair valuation grade. The company appears to be fairly valued based on its current metrics. Key ratios include a P/E ratio of 12, an EV to EBITDA of 8.11, and a ROE of 22.96%.
In comparison to its peers, XP, Inc. has a P/E ratio that is significantly lower than VeriSign, Inc. at 33.71, indicating a more favorable valuation relative to earnings. However, it is also lower than TKO Group Holdings, Inc., which has a P/E of 62.19, suggesting that while XP, Inc. is fairly valued, it may not be as attractive as some of its higher-valued peers. Notably, XP, Inc. has outperformed the S&P 500 year-to-date with a return of 62.45% compared to the index's 2.44%, reinforcing its competitive position in the market.