Nu Holdings Ltd.
Nu Holdings Ltd. provides digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the United States. The company provides spending solutions comprising Nu credit and prepaid card, a digitally enabled card that acts as a credit and a prepaid card; Nubank+ Tier, an evolution of …
Nu Holdings Ltd. provides digital banking platform in Brazil, Mexico, Colombia, the Cayman Islands, and the United States. The company provides spending solutions comprising Nu credit and prepaid card, a digitally enabled card that acts as a credit and a prepaid card; Nubank+ Tier, an evolution of the Nu experience; Ultraviolet credit and prepaid card, a premium metal credit card; mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones; and Nu Shopping, an integrated marketplace that enables customers to purchase goods and services from various ecommerce retailers. It also offers transactional solutions, such as Nu Personal Accounts, a digital account solution for personal financial activities; Nu business accounts for entrepreneur customers and their businesses; and Nu business prepaid and credit card. In addition, it offers savings and investing solutions, including Money Boxes, a solution for goal-based investing; investing solutions, an attractive investment product with customized and conflict-free guidance; and NuCrypto, a solution for buying and selling cryptocurrencies through the Nu app. Further, the company provides borrowing solutions comprising personal unsecured and secured loans; Pix financing that enables credit card and digital account customers to make free and instant peer-to-peer transfers; Boleto financing, which enables credit card and digital account customers to make payments; purchase financing; cash-in financing; and NuPay to make online purchases and pay for services through Nu app. Additionally, it offers protection solutions, such as NuInsurance protection solutions, including life, mobile, auto, home, and financial protection insurance policies; and beyond financial services solutions, including NuTravel, a travel portal; and NuCel, a mobile phone service. Nu Holdings Ltd. was founded in 2013 and is based in Sao Paulo, Brazil.Priced within the modelled range
5-year outlook: Not shown because confidence is low: no second model to compare.
Other models: USD 9.28–10.46 (median 9.87). The recommended value is 40% above that median, so treat the upside with extra caution.
Why: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Details and the full model are below.
Market price within modeled range
Earnings-based DCF using TTM through 30 Jun 2026 net income, of which 70% is treated as distributable after reinvestment, with no extra debt or cash adjustment because net income is already after interest. Used because free cash flow or dividends do not give a usable base. Base assumptions are 23.32% growth, 2.4% terminal growth, and 9.6% discount; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 23.32%, discount rate 9.60%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 23.3% (sector default 5.4%, own revenue history 40.0%, analyst revenue consensus 23.9%).
Analyst consensus expects revenue growth of 24.0% a year; the growth assumption used is 23.3%.
Adjust assumptions
Why this model: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Compare models- Recommended: Earnings-based DCF — USD 13.77 (+17.3%)
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EPS-based Gordon proxy
— USD 10.46 (-10.9%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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FCFF (steady state)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/EBITDA (12x)
— USD 9.28 (-20.9%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
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EV/Sales (Rule of 40)
— USD 35.09 (+198.9%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 10.12 | -16.0% |
| Base USD 13.77 | 14.8% |
| Bull USD 20.33 | 42.3% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 11.74 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.6%).
Compare: the market implies 19.1% a year, this model assumes 23.3%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Earnings-based DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.6% | 8.6% | 9.6% | 10.6% | 11.6% |
|---|---|---|---|---|---|
| 19.3% | 16.72 | 13.88 | 11.84 | 10.29 | 9.09 |
| 21.3% | 18.08 | 15.00 | 12.77 | 11.10 | 9.79 |
| 23.3% | 19.53 | 16.18 | 13.77 | 11.96 | 10.54 |
| 25.3% | 21.07 | 17.45 | 14.84 | 12.87 | 11.33 |
| 27.3% | 22.71 | 18.79 | 15.96 | 13.84 | 12.18 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 92 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 4 of 5 years profitable | 16 / 20 |
| Cash generation | free cash flow positive in 4 of 5 years | 16 / 20 |
| Growth | revenue +59.8% a year | 20 / 20 |
| Balance sheet | net debt 1.9x EBITDA | 20 / 20 |
| Margins | EBITDA margin 23% | 20 / 20 |
Peers in Financials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| NU (this company) | USD 11.74 | 14.8% | 16.0 | 4.3 | – | 92 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.88 | 68.1% | 3.7 | 0.6 | 1.3% | 76 |
| LRE.L Lancashire Holdings Limited | GBP 6.89 | 45.5% | 7.1 | 1.6 | 3.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.88 | 36.0% | 6.8 | 0.7 | 6.9% | 78 |
| PRU.L Prudential plc | GBP 9.29 | 33.7% | 8.1 | 1.6 | 1.9% | 78 |
| V Visa Inc. | USD 422.59 | 33.3% | 8.9 | – | 0.2% | 100 |
| AGS.BR ageas SA/NV | EUR 77.60 | 32.5% | 8.2 | 1.5 | 5.0% | 76 |
| SYF Synchrony Financial | USD 74.07 | 29.9% | 7.2 | 1.4 | 2.1% | 100 |
| NWG.L NatWest Group plc | GBP 5.92 | 29.6% | 8.3 | 1.3 | 4.9% | 88 |
| Peer median | 7.6 | 1.4 | ||||
Trailing 12-month financials
TTM through 30 Jun 2026 · quarterly EODHD data · data downloaded 05 Nov 2026 16:06
| Revenue | USD 19,379,991,000 |
|---|---|
| EBITDA | USD 4,524,299,999 |
| EBIT | USD 4,393,989,999 |
| Net income | USD 3,607,106,000 |
| Free cash flow | USD -4,216,122,000 |
| Capital expenditures | USD 483,174,000 |
| Debt | USD 42,023,749,000 |
| Cash | USD 33,273,023,000 |
| Working capital | USD -29,661,852,000 |
| Shares outstanding | 4,904,837,000 |