* Note: Prices are in Million (M) USD.
Description:
Nu Holdings Ltd. operates in the technology industry. The company is headquartered in Grand Cayman, Cayman Islands.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $14,930 M
Debt : $865 M
EBITDA : $3,092 M
Since Cash is greater than Total Debt, 5 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Banks—diversified
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 20.70
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 7 overlapping fiscal years (max 20).Average Free Cash Flow: $318 M
Average Revenue: $3,818 M
Revenue Converted To Free Cash Flow (%): 8.3%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $11,104 M
Revenue 4 Years Ago (2020-12-31): $737 M
Last 5 Years Average Revenue Growth: 281%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $4,889 M
Share Count 5 Years Ago (2020-12-31): $219 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $0.83
Trailing 12-Month Earnings Per Share (EPS): $0.60
Average Earnings Per Share (EPS): $0.72
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0%
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 7 valid ROE years (max 20).Average ROE: -4.7%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $15
52-Week Low: $9
Threshold Price (15% Above 52-Week Low): $10
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $58,134 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 18 points to above Nu Holdings Ltd (NU) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 2 Years Avg P/E (27.92)
× EPS ($0.72) = $19.96.
Last 2 Years Avg PE 27.92, Fair Value PE 12, Industry Based PE 13, Growth Based PE 50, RCFC Based PE 16.67, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 20.95. Value-Trades has assined P/E value 20.95. Since an average (Current Year EPS + Next Year EPS) earning per share is $0.715.
The fair value of Nu Holdings Ltd (NU) stock should be (20.95 x $0.715) = $14.98.
