* 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 : $17,154 M
Debt : $29,947 M
EBITDA : $3,250 M
Net Debt (Debt - Cash): $12,793 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
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: 21.69
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: $16
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: $71,857 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 13 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
8.34, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 6 values, average assigned is
21.48. Value-Trades has assined P/E value
21.48. An average (Current Year EPS + Next Year EPS) earning per share is
$0.715.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $15.36 (PE 21.48 × EPS $0.72)
Fair value using simple average PE × EPS: $19.96 (PE 27.92 × EPS $0.72)
Lesser of these two: $15.36
So the Final Fair Value is: $15.36
