Visa IPO Analysis

http://st0ckman.blogspot.com/2... my blog for a full analysis$42, that would put it at PE at 26.6,$44, that would put it at PE at 28,$50, that would put it at PE at 31.6,$55, that would put it at PE at 35,$60, that would put it at PE at 38,$65, that would put it at PE at 41,MA was offered and opened at PE of 15 at $39 IPO and today's price ofMA is at PE of 26, which puts Visa at par with MA at $42, given theyhave same earnings.DIRECT COMPETITOR COMPARISON MA AXP DFS Pvt1 IndustryMarket Cap: 27.33B 48.56B 7.28B N/A 132.24MEmploy­ees: 5,000 67,700 12,800 N/A 51Qtrly Rev Growth (yoy): 27.80% 12.40% 4.60% N/A 16.30%Revenue (ttm): 4.07B 31.45B 4.10B N/A 110.01MGross Margin (ttm): 100.00% 44.16% 100.00% N/A 39.62%EBITDA (ttm): 1.23B 8.89B N/A N/A 14.65MOper Margins (ttm): 27.83% 26.21% 32.58% N/A 0.27%Net Income (ttm): 1.09B 4.05B 588.63M N/A -386.67KEPS (ttm): 8.002 3.355 1.229 N/A N/AP/E (ttm): 26.04 12.52 12.37 N/A 18.08PEG (5 yr expected): 1.51 1.11 1.66 N/A 1.17P/S (ttm): 6.72 1.54 1.78 N/A 1.64AXP = American Express CompanyDFS = Discover Financial ServicesPvt1 = Visa Inc. (privately held) *****this has to be updated****Industry = Business Services-keep in mind that people with pre market shares usually dump them for an immediate profit. these sellers need to be washed out of the market. this is one of the reasons master card did not do well right away. master card also did very well because it came out with a pe of 15 then the stock went down which also decreases then pe ration bringing more value into the stock. as of the close yesterday the stock has a pe ration of roughly 36, the highest pe in the sector. as a value play the stock is expensive. keep in mind the average pe on the dow jones is 14.27.DOW JONES AVERAGES INDEX FUNDAMENTALSIndex P/E (Incl. Negative)P/E (Excl. Negative)P/Book ValueDiv. YieldP/SalesP/Cash FlowTrailingProjectedTrailingP ojectedIndustrial Average 14.2712.6014.0112.603.312.571. 616.14Transportation Average 14.7313.8814.7313.882.161.420. 98.34Utilities Average 15.3014.2115.3014.212.053.391.346.84visa is seen by some(video below) as a hedge against a recession or a weak economy because visa charges per sale, they do not finance and people use their cards more in tough times.lets not forget the markets are in a down trend and in very bad shape. as many of you know i am expecting a major crash in the markets world wide.keep an eye on the highs and lows and of course the trend. i would not go long this stock with out a option hedge. because of v's price to earnings ratio this is not a master card mirror. dont get me wrong it could do very well. ide just sit on the side lines for now. subscribe to my blog for updates. you can subscribe with any reader or your email.

Channel: People & Blogs
Uploaded: December 31, 1969 at 5:59 pm
Author: st0ckman

Length: 03:57
Rating: 4.33
Views: 1985

Tags: analysis  day  ipo  pe  ratio  research  trade  trader  trading  visa  

Video Comments