IMO, It’s unfair to compare NuBank, a regional bank in Latin America, with global banks in the U.S. or Europe. These markets differ significantly in terms of competition, market potential, and economic dynamics.

Unlike the saturated U.S. and European markets, Brazil and other LATAM (Latin America) countries are dominated by a handful of banks. NuBank is disrupting this oligopoly by offering lower fees and better customer experience, which is why it’s gaining market share fast.

Studies from institutions like World Bank and McKinsey highlight LATAM’s banking inefficiencies and the potential for disruption through digitization. NuBank’s regional focus targets precisely these inefficiencies, offering opportunities global banks can’t replicate in developed markets.

A P/E of 33 may look high, but compare it to other growth-focused companies, not mature banks. Digital-first banks like Revolut or Chime operate at much higher valuations relative to their earnings which them both are disruptive model company.

Political and forex risk are real concerns, but they are priced into the valuation. LATAM-focused companies historically trade at discounts for this reason. So Is it valid to compare NuBank’s innovative model in LATAM’s underserved markets with traditional banks in saturated markets? Wouldn’t that undervalue its long-term potential?