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Itaú Unibanco Holding S.A (ITUB4) Fair Value & Analysis

Financial Services · BR · Market cap R$461B (≈ $90.3B) · ISIN BRITUBACNPR1

What is Itaú Unibanco Holding S.A really worth?

IU Itaú Unibanco Holding S.A ITUB4 · SA
PriceR$41.92
Fair ValueR$37.35
Upside−10.9%
Quality57/100

A solid business, but trading 12% above our fair value of R$37.35.

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Strengths

Healthy Growth (revenue 5y +23.8 %/yr)
Highly profitable · 33.3% net margin
Wide moat 79/100

Risks

!High debt · generates free cash flow
!Mixed vs. peers (8/15)
!Weak on valuation: 19 out of 100
!Weak on balance sheet: 15 out of 100

For context

·8.01% dividend yield
Evidence: High Range R$28.01 – R$46.68

Fair value as of: Aug 25, 2026

From 6 valuation models · updated 11 days ago

Share price −0.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
  • The price sits in the upper half of our model range, so the margin of safety is thin.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

R$48.40 R$12.81 Fair Value R$37.35 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 25, 2026.

How to read this chart

60‑month range R$12.81 – R$48.40 · fair‑value band R$28.01 – R$46.68 · the R$41.92 price screens above the R$37.35 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 25, 2026.

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Analysis

Itaú Unibanco Holding S.A (ITUB4) currently trades at R$41.92, while our model-based Fair Value estimate is R$37.35, implying the stock looks roughly 12.2% overvalued today. The Quality Score stands at 57/100 (solid quality), in the Financial Services sector. Bull case: the Dividend Discount group reads highest at a median of R$74.25 per share, and 3 of the 6 models we run sit above the R$41.92 price. Bear case: the Asset-Based group reads lowest at R$12.25, and 3 of the 6 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Itaú Unibanco Holding S.A generated revenue of R$138B at a net margin of 33.3%. Revenue declined 2.1% year over year. It earns a return on equity of 21.8%. Net debt stands at R$742B. Fundamentals as of Aug 25, 2026

Our scenario range runs from R$28.01 (bear case) to R$46.68 (bull case); at R$41.92, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 35% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at −11%, ITUB4 screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly R$0.5150 per share, which is 1.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence R$25.45 R$30.45 R$80.46 67
DDM Multi-Stage R$41.52 R$74.25 R$94.47 64
Gordon GGM R$41.52 R$90.65 R$152.52 63
All 6 models by family
Dividend Discount
Gordon GGM R$41.52 R$90.65 R$152.52 63
DDM Multi-Stage R$41.52 R$74.25 R$94.47 64
Multiples
P/E Multiple R$39.09 R$52.12 R$65.14 61
P/B Multiple R$19.19 R$25.59 R$31.98 53
Asset-Based
NCAV (Graham) R$9.14 R$12.25 R$18.28 52
Economic Profit
Residual Income best evidence R$25.45 R$30.45 R$80.46 67

Widest divergence: Dividend Discount (R$74.25) versus Asset-Based (R$12.25). Highest evidence: Residual Income (67).

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Key figures & financial health

P/E ratio 10.2 as of Jul 30, 2026
P/S ratio 3.28 P/E × margin
EPS (TTM) R$4.12 price ÷ EPS = P/E 10.2
Dividend yield 8.0% payout 81.5%
Net margin 32.3% FY2025
Return on equity 21.8% TTM
More key figures
Profitability
Return on assets (EBIT) 2.9% avg 5y
Operating margin 33.1% TTM
Growth
Revenue (TTM) R$138B TTM
Revenue growth (YoY) −2.1% 3y avg +0.1%
EPS growth (YoY) +11.4%
Balance sheet & cash flow
Free cash flow R$131B FY2025
Net debt R$742B FY2025 · ≈ 5.7 yrs of FCF

Figures from reported company fundamentals · as of Aug 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 57 · Market factors (momentum, volatility) 64

Profitability 43
Margins and returns on capital today
Quality Growth 53
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 29
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 59
Distance to the 52-week high (market factor)
Net Issuance 44
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Itaú Unibanco Holding S.A. provides various financial products and services to personal and corporate customers in Brazil and internationally. It operates through three segments: Retail Business, Wholesale Business and Activities with the Market + Corporation.

Full company description

Itaú Unibanco Holding S.A. provides various financial products and services to personal and corporate customers in Brazil and internationally. It operates through three segments: Retail Business, Wholesale Business and Activities with the Market + Corporation. The company offers current accounts; funds management; payments and collections; loans; credit and debit cards; investment and commercial banking services; real estate lending and financing services; economic, financial and brokerage advisory; and leasing and foreign exchange services. The company also provides non-life insurance products covering loss, damage, or liability for objects or people, as well as life insurance products covering death and personal accidents. It serves retail customers, account and non-account holders, individuals and legal entities, high income clients, microenterprises, and small companies, as well as middle-market companies and high net worth institutional clients. The company was formerly known as Itaú Unibanco Banco Múltiplo S.A. and changed its name to Itaú Unibanco Holding S.A. in April 2009. The company was incorporated in 1924 and is headquartered in São Paulo, Brazil. Itaú Unibanco Holding S.A. is a subsidiary of IUPAR - Itaú Unibanco Participações S.A.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Itaú Unibanco Holding S.A reported revenue of R$139B in FY2025 versus R$122B in FY2021, a compound +3.3%/yr. Reported net income was R$44.9B in FY2025, compounding +13.8%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$139B
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+38.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+23.8%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.0%
Value creation/yr (5Y, in BRL) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in BRL: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+16.1% (8.1 + 8.0)
Revenue +3.3%/yr
FY21 R$122B
FY22 R$139B
FY23 R$125B
FY24 R$326B
FY25 R$139B
Net income +13.8%/yr
FY21 R$26.8B
FY22 R$29.2B
FY23 R$33.1B
FY24 R$41.1B
FY25 R$44.9B
Character of growth · EPS growth decomposed (2014-2025) +5.2 % p.a.
Revenue per share +7.4 %

of which total revenue +8.3 % · buybacks/dilution −0.8 %

EBIT margin −16.0 %
Tax rate +0.6 %
Residual (interest, one-offs) +15.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

ITUB4 screens 12% overvalued. Compare with DBS Group →

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Cite: Fair Value Calculator (2026). "Itaú Unibanco Holding S.A Fair Value". https://www.fairvalue-calculator.com/stock/ITUB4

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Banks - Regional · 1071 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Top 25%
Fair Value upside −11% · Below median
Return on equity (TTM) 22% · Top 25%
Return on assets 2% · Top 25%
Net margin (TTM) 33% · Above median
Operating margin (TTM) 33% · Below median
Revenue growth −2% · Bottom 25%
Dividend yield (TTM) 8.0% · Top 25%
Debt / equity 1.71× · Higher than 75% of peers

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 10.2× · Cheaper than median
P/B 2.25× · Pricier than 75% of peers
P/S (TTM) 3.34× · Pricier than median
P/FCF 0.7× · Cheaper than 75% of peers
EV/EBITDA 10.4× · Pricier than median
PEG 1.44× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE19 · sector 33
FUTURE0 · sector 45
PAST87 · sector 41
HEALTH15 · sector 85
DIVIDEND100 · sector 51

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 25, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.17 $24.12 +4%
BNP Paribas SA BNP €102.56 €144.64 +41%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,443 ₹835.21 −42%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is Itaú Unibanco Holding S.A (ITUB4) overvalued or undervalued?
As of Aug 25, 2026, our model estimates a fair value of R$37.35 versus a price of R$41.92, about −11% upside (overvalued).
What is the fair value of ITUB4?
Our model-based fair value for Itaú Unibanco Holding S.A is R$37.35 (as of Aug 25, 2026), built from audited fundamentals. The current price: R$41.92.
What is the quality score of ITUB4?
Itaú Unibanco Holding S.A has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Itaú Unibanco Holding S.A (ITUB4)?
Itaú Unibanco Holding S.A reported trailing-twelve-month revenue of about R$138B (latest available figure, as of Aug 25, 2026).
What is the net profit margin of ITUB4?
The net profit margin of Itaú Unibanco Holding S.A is about 33.3%, meaning it keeps roughly 33.3% of revenue as net income. Based on the latest reported figures.
Does Itaú Unibanco Holding S.A pay a dividend?
Itaú Unibanco Holding S.A currently shows a dividend yield of about 8.01% relative to its recent price (as of Aug 25, 2026).
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