Discounted Cash Flow

XP Inc. Foreign

XP · Based on 10 years of SEC filings · Converted from BRL to USD

⚠ Cash flow predictability 47/100 (moderate) — FCF YoY std dev 83%, net income 35% (full history)

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income
Dividends

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2018 $400.9m $125.0m $-105.4m 31.2% $0.94
2019 $701.7m (75.0%) $301.3m (141.0%) $-758.4m (-619.9%) 42.9% (37.7%) $2.11 (125.7%)
2020 $978.9m (39.5%) $472.5m (56.8%) $266.5m (135.1%) 48.3% (12.4%) $3.76 (78.0%)
2021 $1.2b (23.5%) $744.5m (57.6%) $-811.0m (-404.3%) 61.6% (27.6%) $6.42 (70.8%)
2022 $1.2b (-4.1%) $672.2m (-9.7%) $343.3m (142.3%) 58.0% (-5.8%) $6.44 (0.4%)
2023 $1.3b (10.0%) $768.1m (14.3%) $1.6b (358.2%) 60.3% (3.9%) $7.22 (12.1%)
2024 $1.4b (13.7%) $973.0m (26.7%) $2.2b (36.9%) 67.2% (11.4%) $8.33 (15.4%)
2025 $1.6b (7.3%) $1.1b (9.3%) $2.3b (7.3%) 68.4% (1.8%) $9.80 (17.7%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

SEC filings report in BRL. Values above are converted to USD for comparison with the US-listed share price.

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model