Visa, Inc. (V)
Visa, Inc., through its subsidiaries, operates retail electronic payments network worldwide.
Recs
11122421212
(< 20)
Submitted: 2/4/2009 8:37:49 PM :
Start Price:
$51.91
V Score:
+19.92
market share
Recs
16tigers
(39.56)
Submitted: 3/19/2008 11:33:44 AM :
Start Price:
$58.93
V Score:
+51.61
Strong company with an IPO in an uncertain time. Since this is such a strong and well-known company that is solid, I think it will wind up doing very well.
Recs
1poorguy
(91.17)
Submitted: 11/27/2008 9:02:37 PM :
Start Price:
$51.38
V Score:
+29.39
They get a piece of practically every transaction on the planet. This recession may actually present a wonderful buying opportunity. VISA will likely still be going strong long after I'm gone. Disclaimer: long V
Recs
22catch22
(20.17)
Submitted: 4/6/2008 3:52:12 PM :
Start Price:
$64.47
V Score:
-42.20
Go to www.secinfo.com and look at Visa's 10k to see where I got the following numbers from:
Valuation:
On page 111 of their 10k they reported Net Income for the following years as...
2005 = $360,445,000
2006 = $454,561,000
2007 = $(1,076,095,000) NET LOSS
However, the 2007 loss was due to hefty litigation charges brought on by the American Express 2.5 Billion dollar lawsuit. Note that there is some evidence that suggest Visa is not done with their litigation charges and part of this IPO was to set money aside for future litigation needs.
For now lets just take the litigation charges out of the equation so we can value the stock based on a best case scenario.
To do this I took the litigation costs out of the 2007 Consolidated Statement of Operations... This gives us the following:
Operating Income = $1,203,335,000
Working it further on down to Net Income, ASSUMING a 35% Income Tax (2005 had 40.18%, 2006 had 34.82%), we get..
Net Income = $817,847,800
So for this valuation we will use the following Net Incomes:
2005 = $360,445,000
2006 = $454,561,000
2007 = $817,847,800 (Adjusted to take out litigation)
Divide Net Income in 2007 by 446,000,000 IPO Shares Outstanding and you get 1.834 EPS.
Use the MasterCard P/E of 25 and your Visa per share value should be $45.85.
* This is determined by multiplying the MA P/E of 25 by the adjusted EPS of 1.834.
At the current price of 64.48 the Visa P/E should be approximately 35.16. That is 40% higher than Master Card.
THIS IS ALL WITHOUT FACTORING IN THE LITIGATION LOSSES!!!
Visa should, by all means, come back to a lower value much closer to it's IPO price.
The good news:
Without litigation Visa had a Net Income increase from 05-06 of 26%. Their increase from 06-07 was 79.92%
So there should be a little extra on top of the stock price to look at future earnings, assuming they aren't already built in based on Master Cards P/E.
Recs
23oldforty
(< 20)
Submitted: 10/4/2009 11:58:53 AM :
Start Price:
$67.77
V Score:
+12.05
Visa will Gain momentom as the economy inproves throughout the years ahead. With the trend of going paperless the years ahead should give visa a leading role in paperless transactions. Thus inproving its bottom line.
Recs
2dreambig
(53.59)
Submitted: 3/26/2008 4:29:23 PM :
Start Price:
$63.43
V Score:
+41.97
This stock should continue to gain in price due to great earnings and to the fact that Visa is not exposed to any of the bad debt in the financial sectors. Worldwide expansion and continued profit growth should help boost the price of shares well beyond the current market valuation estimate of 75.00 per share.
Recs
2L84ME53
(45.95)
Submitted: 3/24/2008 1:58:45 PM :
Start Price:
$61.25
V Score:
+47.38
interesting ipo
Recs
350rick
(55.30)
Submitted: 6/16/2008 1:48:45 PM :
Start Price:
$81.87
V Score:
+14.95
people will never pay off their credit cards. there's no incentive to do so.. until then...
Recs
37weeks
(59.15)
Submitted: 6/16/2008 6:32:55 PM :
Start Price:
$83.29
V Score:
+13.46
Visa has a leadership position with respect to its peers and yet has not achieved its potential due to the economic times. It is ready to run. Hang on.
Recs
4CASHFLOW
(< 20)
Submitted: 4/28/2008 11:41:04 AM :
Start Price:
$76.32
V Score:
+23.94
Visa's shares are going to go up just like Mastercard did.
Recs
63IMPALA
(< 20)
Submitted: 5/13/2008 12:44:17 PM :
Start Price:
$81.94
V Score:
-17.05
Over 100/share . Come on, Its Visa - its everywhere you want to be.
Just look at some of the cards in your wallet. They already collect money from you every time you swipe it. Or they collect money from the swipe machine at the store.
Recs
82bob
(< 20)
Submitted: 4/19/2008 11:54:55 AM :
Start Price:
$57.84
V Score:
+51.52
Bought it @ 61.67
Recs
??????5000
(90.99)
Submitted: 5/27/2008 12:51:46 PM :
Start Price:
$75.18
V Score:
+24.46
GOOD GROWTH AND P.E LOOKS GOOD FOR THE TIME BEING,6 TO 8 MONTHS.
Recs
abh2lde
(< 20)
Submitted: 10/27/2009 6:33:27 PM :
Start Price:
$74.83
V Score:
-4.13
> Overpriced, has to come down
> Stupidly high pricing ... US should start limiting profits by regulations, like Europe. Over the years, technology and supporting costs came down. But customer pricing remains high
Recs
abitare
(99.61)
Submitted: 3/24/2008 9:25:28 PM :
Start Price:
$59.44
V Score:
-50.85
Martin: The Leader wants them living. Some of them will be made into troops for battles with his enemy.
Mike Donovan: And the others?
Martin: In addition to the water... there is another basic shortage on our planet.
Mike Donovan: Food!
V (1983)
Recs
aboutthedough08
(< 20)
Submitted: 4/18/2008 3:07:27 PM :
Start Price:
$66.99
V Score:
+38.09
Visa is everywhere you want to be and as a result has a major share of credit card revenue. I wouldn't at all be surprised to see their earnings in 2008 increase... they will make a run at Mastercard.
Recs
accountbuddy
(< 20)
Submitted: 4/29/2008 1:03:27 AM :
Start Price:
$73.43
V Score:
+27.84
great money making opportunities
Recs
acmcknight
(< 20)
Submitted: 4/24/2008 12:45:09 PM :
Start Price:
$70.55
V Score:
+32.28
Visa should double or triple in value simply because of master card and america express' success in the stock market. Visa is the better company between the three due to it not being exposed to short or long term debt. Visa simply conducts the electronis transfers for all of the financial institutions who do business with Visa. I see Visa as best in breed now and for years to come.
Recs
Actionman2go
(< 20)
Submitted: 10/20/2008 8:12:12 AM :
Start Price:
$53.01
V Score:
+33.75
Conservative picks in case the market stays down.
Recs
adam8005
(34.81)
Submitted: 5/27/2008 4:38:48 PM :
Start Price:
$79.52
V Score:
+19.28
As the masses stop carrying cash and turn to plastic Visa will continue to grow. Since the IPO launched the high interest is well deserved. Mastercard launched in May 2006 at around $45 and now is above $278 - a staggering increase. Visa has a larger market share, around 60% and has lauched fairly recently and is hovering under $80. The stock rose sharply to almost $90 and had a market correction to under $80 probably based on consumer apprehension of current shakey market conditions which make the stock a great buy at under 80 bucks.
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