Where Will Nu Holdings Stock Be in 10 Years?

Nu Holdings (NYSE: NU), 1 of Latin America's fastest-growing fintech companies, went nationalist astatine $9 per stock connected Dec. 9, 2021. Its banal has risen much than 60% since then, outpacing the S&P 500's 40% gain, but it's been a bumpy ride. While Nu's halfway concern grew rapidly, the geopolitical and macro headwinds successful its apical markets consistently compressed its valuations. Let's spot if it tin flooded those challenges and soar adjacent higher implicit the adjacent 10 years.

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Nu owns NuBank, the largest digital-only slope successful Latin America. Most of its customers are successful Brazil, Mexico, and Colombia. By streamlining its online services and offering a fee-free recognition card, NuBank expanded much rapidly than its brick-and-mortar competitors. It besides locked successful its customers with much loans, e-commerce services, and crypto trading tools.

From 2021 to 2025, Nu's fig of year-end customers surged from 54 cardinal to 131 million, its enactment complaint (active customers divided by full customers) roseate from 76% to 83%, and its mean gross per lawsuit (ARPAC) much than tripled from $4.50 to $15. Even arsenic NuBank grew similar a weed, its mean outgo per progressive lawsuit remained steady.

From 2021 to 2025, its gross grew astatine a 75% CAGR. It besides turned profitable successful 2023, and its EPS astir doubled successful 2024 and accrued 45% successful 2025.

Those maturation rates are jaw-dropping, but Nu's gross and nett involvement margins declined implicit the past twelvemonth arsenic it expanded much aggressively into Mexico and Colombia to curb its dependence connected its halfway Brazilian market. Both of those smaller markets required higher backing costs and recognition nonaccomplishment allowances than Brazil did, portion the enlargement of its lower-margin secured lending and payroll-backed indebtedness segments exacerbated that pressure.

Those near-term challenges, on with currency devaluation issues and equipped conflicts crossed Latin America, drove galore investors distant from Nu and its determination peers. But astatine $15, Nu's banal looks undervalued astatine conscionable 17 times this year's earnings.

From 2025 to 2028, analysts expect Nu's gross and EPS to turn astatine CAGRs of 28% and 36%, respectively. If it matches those expectations, grows its EPS astatine a 20% CAGR implicit the pursuing 8 years, and trades astatine a much generous 25 times net by the last year, its banal could emergence much than tenfold to astir $158 per stock wrong the adjacent decade.