XP
XP Inc.
Investment Bank
★ Quality 54/100Price today
$19.86
This company value is already calculated
We know what it is worth from its audited numbers, and whether it trades above or below that today. Create your free account to see it.
See what it is worthcharlieapp.co
What this business is made of
The business
XP broke the Brazilian banks' monopoly with an army of advisors.
XP is the leading broker-dealer and investment platform in Brazil. It earns money from trading commissions, fund distribution, fixed income, and increasingly from collateralized lending and insurance. Take rate ~1.25% on R$1.2T in assets under custody.
A network of 17,000 independent financial advisors (IFAs) tied to its platform — the real switching cost sits with the advisor, not the client. A consolidated brand versus the incumbent banks that historically overcharged Brazilian retail investors. The moat exists, but it's eroding: BTG and Itaú copied the model.
Revenue history
From $1.8B to $3.2B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $1.4B · FY2025
Of every $100 in sales, $35 goes to costs and operations; $65 is left as net profit (65% margin).
Catalysts and risks
Expansion of the collateralized loan book: R$15B in equity with ROE 24%.
Aggressive buybacks at P/E ~10x meaningfully shrink the float.
A Selic rate-cutting cycle in Brazil would reactivate flows into equities and funds.
Take rate compressing from 1.5% to 1.25% — competition from BTG and digital banks.
Structural FX risk: all revenue in reais, trades in USD.
Brazil macro: deteriorating fiscal picture, high Selic, and political volatility hit AUC.
Charlie's note
“A decent business at a reasonable price, but you're buying Brazil as much as you're buying XP. If you can't sleep soundly with the Brazilian real in your portfolio, this one's not for you.”
Analysis · May 2026
Want to follow XP Inc.?
We do not calculate a value here: XP Inc. does not generate cash flows you can project, and putting a number on it would be making it up. What you can do is follow it and tell us the price you care about — we will email you when it gets there.
🔔 Email meFree · no card
Charlie informs, it doesn't advise. No information should be taken as a recommendation to buy or sell.