$NU Holdings(NU.US)Context: For Nu, the framework leans heavily on what the balance sheet and forecast earnings indicate…
$NU Holdings(NU.US)
Context: For Nu, the framework leans heavily on what the balance sheet and forecast earnings indicate about that surplus. Book value is estimated at $2.74 per share and is projected to move toward a stable $4.20 per share, while stable earnings are modeled at $1.30 per share based on future Return on Equity estimates from 13 analysts. Against a cost of equity of $0.46 per share, the Excess Returns output suggests Nu Holdings could earn about $0.84 per share in surplus returns, supported by an average Return on Equity of 30.88%. The record Q3 2026 net income and expansion into Nu US and Nu Global accounts help explain why the Excess Returns valuation currently sits meaningfully above the $11.83 share price.
My Trade: Maintaining the same policy for Nu - small swing trades to bring down my cost while holding the rest for long term.
Takeaway: Nu's relatively strong quarter continues to prove why it is worth to buy and hold especially at current prices where it is technically undervalued. Though the swings in share price would not be as large as anticipated, I believe this can be a good compounder. @Captain's Treasure
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