Nu Holdings (NYSE:NU) Valuation in Focus Following U.S. Bank Charter Bid and Amazon Brazil Partnership

Nu Holdings (NYSE:NU) is making headlines after applying for a U.S. national bank charter and setting its sights on the American market for the first time. At the same time, a new partnership with Amazon will see NuPay added as a payment option on Amazon Brazil.

See our latest analysis for Nu Holdings.

Nu Holdings is riding a wave of big-picture momentum, with its share price surging 49.3% year-to-date and recently hitting a record high. These are clear signs that investors are excited by its expansion moves and robust operating performance. Over the long term, the 3-year total shareholder return sits at a staggering 257.4%, highlighting just how dramatically the company has grown from its early days to its now global ambitions.

If Nu's global leap has you thinking bigger, now’s a great time to broaden your perspective and discover fast growing stocks with high insider ownership

With the stock at all-time highs and bullish sentiment running hot, the question for investors now is whether Nu Holdings is still undervalued given its ambitious growth plan or if future success is already fully priced in.

Most Popular Narrative: 9% Undervalued

Nu Holdings' current fair value is pegged at $17.46 by the most popular narrative, which sits above the last close of $15.87. This highlights that analysts see room for the stock to move higher.

The ongoing transition from cash to digital payments and online banking in historically underserved markets continues to accelerate Nu's transaction volumes and increases opportunities for cross-sell and ecosystem stickiness, supporting robust net margin expansion as digital penetration deepens.

Read the complete narrative.

Curious what assumptions power this rosy price target? The main forces behind it include sky-high growth expectations and bold profit forecasts. Want to see the exact numbers and future PE that drive this narrative? Dive in to discover what underpins the upbeat valuation call.

Result: Fair Value of $17.46 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying competition from fintechs and greater exposure to riskier credit segments could quickly challenge Nu Holdings' optimistic growth outlook.

Find out about the key risks to this Nu Holdings narrative.

Another View: The P/E Ratio Challenge

Looking from a different angle, Nu Holdings’ current P/E ratio stands at 33.3x. This is a high multiple compared to both the U.S. Banks industry average of 11.1x and its peers at 11.4x. The fair ratio, based on what the market might justify, sits at just 21.7x. This suggests the market is pricing in a future that may be hard to deliver. Does the premium signal long-term faith, or should investors brace for reversion?

Story Continues

See what the numbers say about this price — find out in our valuation breakdown.NYSE:NU PE Ratio as at Nov 2025

Build Your Own Nu Holdings Narrative

If you’d rather dig into the numbers and craft your own story, it’s quick and easy to shape a fresh viewpoint in just a few minutes, so why not Do it your way?

A great starting point for your Nu Holdings research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NU.

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