Nu Holdings Ltd (NU) is overvalued and NatWest Group Plc ADR (NWG) is undervalued.
Against our estimates of intrinsic value, NWG trades at the wider discount: a margin of safety of +30%, against -86% for NU.
Values as of the 19 Oct 2026 close.
Book value at 2.50x, the multiple a 31.6% return on equity justifies, blended with earnings, values the shares at $7.80; the price of $14.51 is 86% above that value.
Leak Score 62/100 on 8 of 12 signals
Book value at 1.92x, the multiple a 16.1% return on equity justifies, blended with earnings, values the shares at $24.37; the price of $17.11 is 30% below that value.
Leak Score 64/100 on 8 of 12 signals
| Metric | NU | NWG |
|---|---|---|
| Verdict | Overvalued | Undervalued |
| Price | $14.51 | $17.11 |
| Intrinsic value | $7.80 | $24.37 |
| Margin of safety | -86% | +30% |
| Leak Score | 62/100 (8/12) | 64/100 (8/12) |
| Market cap | $70.1B | $67.7B |
| Revenue growth, 5 years | 86.2% | 17.4% |
| Operating margin | 24.5% | 27.5% |
| Net margin | 20.2% | 19.6% |
| Return on equity | 31.6% | 16.1% |
| Debt to equity | 3.17 | 4.29 |
| P/E | 19.8x | 8.6x |
| Forward P/E | 12.9x | 7.8x |
| P/B | 5.3x | 1.3x |
| Dividend yield | — | 5.8% |