Is XP, Inc. overvalued or undervalued?

As of 18 August 2025, the valuation grade for XP, Inc. has moved from attractive to very attractive, indicating a stronger position in the market. The company appears to be undervalued, supported by a P/E ratio of 12, an EV to EBIT of 8.48, and a Price to Book Value of 2.83. In comparison, Match Group, Inc. has a higher P/E ratio of 17.35, suggesting that XP, Inc. offers a more favorable valuation relative to its peers.
Despite a mixed performance in the longer term, XP, Inc. has shown impressive short-term returns, with a year-to-date return of 69.70% compared to the S&P 500's 12.22%. This strong performance reinforces the notion that XP, Inc. is currently undervalued in the market.