XP PE Ratio & Valuation,Is XP Overvalued

XP Relative Valuation

XP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, XP is overvalued; if below, it's undervalued.

Historical Valuation

XP Inc (XP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 9.40 is considered Undervalued compared with the five-year average of 17.51. The fair price of XP Inc (XP) is between 19.72 to 50.19 according to relative valuation methord. Compared to the current price of 17.49 USD , XP Inc is Undervalued By 11.33%.

Relative Value

Fair Zone

19.72-50.19

Current Price：17.49

11.33%

Undervalued

9.40

NaN

EV/EBITDA

XP Inc. (XP) has a current EV/EBITDA of NaN. The 5-year average EV/EBITDA is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBITDA of NaN falls within the range.

NaN

EV/EBIT

XP Inc. (XP) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.

2.47

XP Inc. (XP) has a current PS of 2.47. The 5-year average PS is 4.64. The thresholds are as follows: Strongly Undervalued below -0.65, Undervalued between -0.65 and 1.99, Fairly Valued between 7.28 and 1.99, Overvalued between 7.28 and 9.92, and Strongly Overvalued above 9.92. The current Forward PS of 2.47 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

XP Inc. (XP) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

3.56

P/FCF

XP Inc. (XP) has a current P/FCF of 3.56. The 5-year average P/FCF is 12.60. The thresholds are as follows: Strongly Undervalued below -60.80, Undervalued between -60.80 and -24.10, Fairly Valued between 49.30 and -24.10, Overvalued between 49.30 and 85.99, and Strongly Overvalued above 85.99. The current Forward P/FCF of 3.56 falls within the Historic Trend Line -Fairly Valued range.

XP Inc (XP) has a current Price-to-Book (P/B) ratio of 2.11. Compared to its 3-year average P/B ratio of 2.68 , the current P/B ratio is approximately -21.42% higher. Relative to its 5-year average P/B ratio of 4.58, the current P/B ratio is about -54.06% higher. XP Inc (XP) has a Forward Free Cash Flow (FCF) yield of approximately 36.75%. Compared to its 3-year average FCF yield of 14.23%, the current FCF yield is approximately 158.24% lower. Relative to its 5-year average FCF yield of 7.72% , the current FCF yield is about 376.16% lower.

2.11

P/B

Median3y

2.68

Median5y

4.58

36.75

FCF Yield

Median3y

14.23

Median5y

7.72

Competitors Valuation Multiple

The average P/S ratio for XP's competitors is 5.45, providing a benchmark for relative valuation. XP Inc Corp (XP) exhibits a P/S ratio of 2.47, which is -54.63% above the industry average. Given its robust revenue growth of 7.92%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of XP increased by 47.59% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.43 to 10.08.

The secondary factor is the Revenue Growth, contributed 7.92%to the performance.

Overall, the performance of XP in the past 1 year is driven by P/E Change. Which is more unsustainable.

7.92%

4.32B → 4.66B

Revenue Growth

3.86%

27.48 → 28.54

Margin Expansion

35.81%

7.43 → 10.08

P/E Change

47.59%

11.85 → 17.49

Mkt Cap Growth

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Frequently Asked Questions

Is XP Inc (XP) currently overvalued or undervalued?

What is XP Inc (XP) fair value?

XP's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of XP Inc (XP) is between 19.72 to 50.19 according to relative valuation methord.

How does XP's valuation metrics compare to the industry average?

What is the current P/B ratio for XP Inc (XP) as of Dec 15 2025?

As of Dec 15 2025, XP Inc (XP) has a P/B ratio of 2.11. This indicates that the market values XP at 2.11 times its book value.

What is the current FCF Yield for XP Inc (XP) as of Dec 15 2025?

As of Dec 15 2025, XP Inc (XP) has a FCF Yield of 36.75%. This means that for every dollar of XP Inc’s market capitalization, the company generates 36.75 cents in free cash flow.

What is the current Forward P/E ratio for XP Inc (XP) as of Dec 15 2025?

As of Dec 15 2025, XP Inc (XP) has a Forward P/E ratio of 9.40. This means the market is willing to pay $9.40 for every dollar of XP Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for XP Inc (XP) as of Dec 15 2025?

As of Dec 15 2025, XP Inc (XP) has a Forward P/S ratio of 2.47. This means the market is valuing XP at $2.47 for every dollar of expected revenue over the next 12 months.

XP Valuation