Inter & Co (INTR) Joins S&P Global BMI, Is It 52% Undervalued?

Inter & Co (INTR) just entered the S&P Global BMI Index after overhauling its senior leadership, a twin development that puts index visibility and execution under closer investor scrutiny.

Over the past year, Inter & Co has seen its share price momentum fade, with the 1 year total shareholder return down 51.18% and the 3 year total shareholder return up 2.91%, even as the stock dropped 5.34% on the day of its S&P Global BMI entry and is now trading at US$4.43.

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Inter & Co’s sharp drop on the day of its index entry raises a direct question. Are investors reassessing the business itself, or simply shifting their sentiment around the new leadership and index inclusion, as the current valuation implies?

Most Popular Narrative: 52% Undervalued

Inter & Co's most followed valuation story points to a fair value of about $9.25 against the latest close at $4.43, which places a wide gap between the narrative and the market price that investors now need to explain.

The Single Smart Super App and AI platform, which now handle over 180 products for a large and active client base while keeping cost to serve per client flat, allow Inter & Co to widen cross sell and increase per customer usage, which can lift revenue and support margin resilience.

See why 31 investors see Inter & Co as 52% undervalued.

Result: Fair Value of $9.25 (UNDERVALUED)

Still, Inter & Co’s higher guided cost of risk and rising non performing loan formation on reshaped credit books could undermine the bullish valuation story for its super app.

Find out about the key risks to this Inter & Co narrative.

Next Steps

With mixed sentiment now circling Inter & Co, you do not need to wait for consensus to form. Review the key tension between concern and optimism by weighing the 4 key rewards and 3 important warning signs.

Looking for more investment ideas beyond Inter & Co?

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