Nu holding fair value

Nu Holdings Ltd. (NU) is currently trading below its intrinsic value, as indicated by the fair value estimates and the analysis of various valuation metrics.

1. Intrinsic Value Calculation: The intrinsic value of one NU stock under the Base Case scenario is estimated to be $21.28. This is significantly higher than the current market price of $14.42, suggesting that the stock is undervalued.
2. Valuation Ratios Analysis:
   • The Price-to-Earnings (P/E) Ratio is 45.1, which is higher than the estimated Fair P/E Ratio of 22.8. This indicates that NU is trading at a premium compared to its fair value based on earnings.
   • The Price-to-Sales (P/S) Ratio is 6.18, which is below the industry average, suggesting that the stock is relatively undervalued based on its sales.
   • The Price-to-Book (P/B) Ratio is 9.97, which is above the industry average, indicating that the stock is trading at a premium based on its book value.

3. Market Sentiment and Analysts' Views:
   • The fair value estimates and the analyst price targets suggest that NU is undervalued. The average analyst price target is $14.11, which is below the current market price.
   • The stock is considered overvalued by some analysts, with a Snowflake Score of 0/6 for valuation.
4. Technical Analysis Indicators:
   • The stock's 50-Day Moving Average is $12.68, which is below the current market price, indicating a potential upward trend.
   • The stock is currently trading above its 5-Day and 10-Day Moving Averages of $14.39 and $13.84, respectively, which could be a sign of a short-term upward trend.

5. Resistance and Support Levels: The resistance level is at $14.64, and the support level is at $14.24. The current market price is close to the support level, which could be a point of interest for investors looking for entry points.

In conclusion, Nu Holdings Ltd. is trading below its intrinsic value and fair value estimates, making it an attractive investment option for those looking for undervalued stocks. However, investors should consider the high P/E ratio and the potential risks before making an investment decision.