Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Capital Markets

<ul>
<li>Nubank has revised down its IPO pricing range by close to 20% to USD41.5bn, driven largely by challenging market conditions; this verifies our negative valuation opinion in our previous report</li>
<li>The revised prospectus includes Softbank as Nubank’s new potential cornerstone investor; this is putting pressure on the shares of digital challenger Banco Inter, in which Softbank has a 15% stake</li>
<li>The revised Nubank pricing range narrows the valuation gap with other digital and commercial banks; yet Nubank’s premium valuations need to be justified by medium term super premium earnings growth</li>
</ul>


Nubank has revised down its IPO pricing range by close to 20% to USD41.5bn, driven largely by challenging market conditions; this verifies our negative valuation opinion in our previous report
The revised prospectus includes Softbank as Nubank’s new potential cornerstone investor; this is putting pressure on the shares of digital challenger Banco Inter, in which Softbank has a 15% stake
The revised Nubank pricing range narrows the valuation gap with other digital and commercial banks; yet Nubank’s premium valuations need to be justified by medium term super premium earnings growth


Nubank’s Revised IPO Pricing Range, and the Emergence of a New Potential Cornerstone Investor

<ul>
<li>Nubank, the leading digital native bank in Brazil and Latin America, by number of customers, has filed for an IPO with an indication valuation in excess of USD50bn </li>
<li>Nubank is strong in terms of its key fintech metrics and trends, such as revenue per user relative to its cost to serve and it has low customer acquisition costs </li>
<li>Nubank is a clear leading fintech benchmark; yet its challenges are its super-premium valuation in the face of unsettled markets, and the delivery of fast growth whilst controlling loan delinquency</li>
</ul>


Nubank, the leading digital native bank in Brazil and Latin America, by number of customers, has filed for an IPO with an indication valuation in excess of USD50bn 
Nubank is strong in terms of its key fintech metrics and trends, such as revenue per user relative to its cost to serve and it has low customer acquisition costs 
Nubank is a clear leading fintech benchmark; yet its challenges are its super-premium valuation in the face of unsettled markets, and the delivery of fast growth whilst controlling loan delinquency


Nubank Pre-IPO Research: Priced for Perfection?

Brazil

NU Holdings Ltd. of the Cayman Islands operates as a holding company. The Company, through its subsidiaries, provides loans and digital banking services, as well as issues, administrates, processes, and transfers payments to post-paid credit cards and equity investments in other entities. NU Holdings serves clients worldwide.

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NU Holdings (NU US)

Nubank’s Revised IPO Pricing Range, and the Emergence of a New Potential Cornerstone Investor

Post the price reduction, the jury is still out on the after-market in Nubank shares; Banco Inter is nearing attractive value territory even if...

Victor Galliano

Nubank Pre-IPO Research: Priced for Perfection?

Nubank warrants a premium IPO valuation to other banks, but one that better accounts for the unsettled state of global markets and the potential...

Victor Galliano

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Market Cap (USDm)

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