Is XP Inc. (XP) Overvalued?
We dive into why XP Inc. (XP) could be considered overvalued on 2026-07-24, based on AAII’s Value Score and Grade.Tudor Pop
A+ Stock Grade Summary:
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COMPANY SUMMARY
XP Inc. engages in the provision of financial products and services in Brazil. It operates XP Platform, an open product platform that provides clients to access investment products in the market comprising brokerage securities, fixed income securities, mutual, hedge, and private equity funds; derivatives and synthetic instruments; credit cards; loan operations/collateralized credit products; pension and social security funds, and life and travel insurance products; and other investment products comprising real estate funds, and equity and debt capital markets solutions, as well as wealth management services. The company offers brokerage and issuer services to institutional and corporate clients. It also manages mutual funds focused on stocks and macro strategies distributed to retail and to institutional clients; funds and managed portfolios for high-net-worth retail clients, and proprietary treasury funds; and passive mutual funds that track market indexes, and mutual and investment funds focused on fixed income, credit, real estate, infrastructure, and other alternative strategies. In addition, the company offers securities brokerage services for institutional and retail investors; interdealer brokerage services for institutional traders; and commercial and investment banking products, such as loan operations and transactions in the foreign exchange markets and deposits, as well as develops and sells financial education courses and events online and in person to retail clients. It offers its sell products and services through its omni-channel distribution network and online portals. XP Inc. was founded in 2001 and is based in George Town, the Cayman Islands.
Commentary & Analysis
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As of Thursday, July 09, XP Inc.’s XP share price has surged by 6.38%, which has investors questioning if this is right time to sell.Michael Rose
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Why XP Inc.’s (XP) Stock Is Up 5.10%
As of Wednesday, May 20, XP Inc.’s XP share price has surged by 5.10%, which has investors questioning if this is right time to sell.Michael Rose
Financial Summary
| Share Statistics | XP | Industry Median |
Percentile (All Stocks) |
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| Market Cap (Mil) | $8,765.5 | $2,836.7 | 76% |
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| Shares Out (Mil) | 100.7 | 74.1 | 62% |
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| Institutional Ownership | 99.5% | 79.1% | 89% |
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| Float (Mil) | 410.6 | 69.7 | 84% |
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| Beta | 1.12 | 0.94 | 66% |
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| Avg Daily Volume (000s) | 3,221 | 445 | 88% |
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| Price Change (52-week) |
3.9% | 72.7% | 49% |
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| Growth | XP | Industry Median |
Percentile (All Stocks) |
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| Sales (5yr) | 15.7% | 7.7% | 74% |
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| Net Income (5yr) | 18.6% | 8.9% | 71% |
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| EPS (5yr) | 19.8% | 9.6% | 67 |
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| Dividends (5yr) | 0.0% | 1.3% | 66% |
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| Cash Flow (5yr) | 30.1% | 0.9% | 86% |
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| Estimates | Qtrly | Current Fiscal Year |
Next Fiscal Year |
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| # of Estimates | 5 | 6 | 6 | |
| Current EPS | $0.515 | $2.112 | $2.369 | |
| Month Ago EPS | $0.514 | $2.137 | $2.408 | |
| # Rev Up | 0 | 1 | 2 | |
| # Rev Down | 1 | 1 | 1 | |
| Three Months Ago EPS | $0.529 | $2.133 | $2.437 | |
| Year/Year Chg | 7.7% | 19.7% | 46.3% | |
| Financials | XP | Industry Median |
Percentile (All Stocks) |
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| Sales (TTM) (Mil) | $3,484 | $871 | 69% |
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| Net Income (TTM) (Mil) | $1,005 | $85 | 86% |
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| EPS (TTM) | $1.922 | $1.000 | 71% |
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| Operating Cash Flow (TTM) (Mil) | $3,713 | $64 | 93% |
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| Net Cash Flow (TTM) (Mil) | $2,543 | $25 | 98% |
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| Long-Term Debt (Q1) (Mil) | $3,913 | $209 | 83% |
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| Enterprise Value (Q1) (Mil) | na | $1,297 | na |
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| Valuation | XP | Industry Median |
Percentile (All Stocks) |
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| P/B | 1.86 | 2.69 | 49% |
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| P/E | 9.0 | 19.1 | 12% |
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| Dividend Yield | 1.2% | 0.9% | 69% |
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| PEG (5yr hist) | 0.5 | 1.4 | 21% |
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| Ratios | XP | Industry Median |
Percentile (All Stocks) |
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| Gross Margin | 69.1% | 75.0% | 80% |
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| Net Margin | 28.8% | 15.8% | 88% |
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| ROA | 1.4% | 2.1% | 51% |
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| ROE | 23.9% | 13.4% | 84% |
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| Liabilities to Assets | 94.0% | 59.1% | 91% |
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| F-Score | 6 | 5 | 69% |
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Passing Stock Screens
As of 7/31/2026, from a list of 60 stock screening strategies,
GURU STRATEGY
Graham--Defensive Investor (Utility) Screen
Factors: Yield, Value, Quality, Industry/Sector
Graham's approach leads to three separate screens that focus on the concept of intrinsic value, justified by a firm's financial strength.
| Performance Since Inception: | 6.9% |
| +/- S&P 500: | -0.6 |
GURU STRATEGY
Neff Screen
Factors: Value, Growth
An approach using a stringent contrarian viewpoint—finding undervalued, out-of-favor stocks in the bargain basement that have an optimistic future.
| Performance Since Inception: | 14.6% |
| +/- S&P 500: | +7.1 |
