Stock market blog
Credit card giant remains a valuation bargain: +92.1% over five years
In the stock exchange blog “Money”, the expert François Bloch portrays a dazzling or a lurching share every day. Today: Visa Inc.
“Money” – the daily stock market blog by François Bloch.
Market mood: SMI below the mark of 11,444 points (Current: 10,607) – Wall Street: US securities markets: -0.42% — Interest rates will rise rapidly in the US until mid-2023– Gold above the US$ 1,600 mark per ounce ( Currently: 1’953 US$)! Oil swings down (US$66.97) – The shares of BASF (stock symbol: BAS GY) start again, but only with covered calls!
Headlines:
ASM International (stock symbol: ASM NA): Reload!
META Platforms (stock symbol: META US): Reload again!
Moncler (stock exchange symbol: MONC IM): Reload under all circumstances!
Business: Visa Inc. (stock symbol: V US) is an international credit card organization that enables customers to pay digitally instead of cash or checks. The group has built one of the world‘s most advanced telecommunications and computer networks, capable of processing over 47,000 transactions per second and characterized by security, convenience and reliability.
It also connects all Visa members, all acceptance points and numerous ATMs globally. The Visa cards can be used worldwide and are currency-independent. In addition, bank customers have a larger selection for payment transactions. Accordingly, various card types and payment methods are part of the Group’s product portfolio: immediate payment when debited (debit cards), early payment with credit (prepaid cards) or later payment with credit (credit cards).
In this context, the company is also active in the development of new technologies with regard to eCommerce and mobile payment in order to develop secure and individual payment methods. All card products are not issued by the company itself, but by member banks. (Source: www.finanzen.net)
Fundamental valuation discount no longer available. The last quarterly figures are absolutely sensational with even more potential.
investment proposal: The value evaluated at US$ 447 billion is slowly becoming more and more interesting for you as an investor to acquire additional positions. Although the price/earnings ratio is 27 points as of 2023, which is very sporty for this sector, this should not worry you too much. With regard to the year 2024, this key figure will be reduced to 22.7 points, which is a real valuation sensation.
As always, I substantiate my statements with so-called actual figures and future estimates, which bring you closer to the positive aspects of the title in a simple way. While EBIT was US$ 10,022 million in 2016, this indicator should increase to US$ 25,498 billion (new record) by 2024. This is a more than remarkable rate of increase within a very short period of time.
The current return on sales of 66.4%, which should increase to 69% by 2024, is excellent. These are absolute top values and give you the courage to build up positions here again, in combination with covered calls. You can bet up to a maximum of 4,875% of your entire share portfolio on this value. Only the dividend is weak (currently: 0.82%), but this is not the decisive point, which is why you should rely on this value. The local main index gained only 61.9% in the same period.
Investment strategy: Building up positions only in combination with covered calls!
Conclusion: Top value for the foreseeable future until 2025
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