Visa Inc Stock Fair Value – Visa to Acquire Brazilian Processor Pismo for $1 Billion in Cash
June 30, 2023
🌥️Trending News
Visa Inc ($NYSE:V)., one of the world’s largest payments and technology companies, has announced a deal to acquire Brazilian financial and payments processor Pismo Soluções Tecnologicas Ltda. for $1 billion in cash. This deal marks a major milestone in Visa Inc.’s ongoing mission to expand its offerings and services to a larger customer base. Visa Inc. is a global leader in payments technology, facilitating digital payments across the world. With the acquisition of Pismo, Visa Inc. is now able to offer a suite of services in Brazil, including payment solutions, loyalty programs, digital wallet services, and more. The acquisition of Pismo will also create a more seamless experience for customers by allowing them to benefit from Visa’s global capabilities such as fast and secure cross-border payments.
Additionally, Pismo has a notable presence in the e-commerce sector, which will further enable Visa to expand its digital payment and e-commerce capabilities in Brazil. Visa Inc.’s acquisition of Pismo is part of its larger strategy to strengthen its presence in the Brazilian market. With this acquisition, Visa Inc. will be able to solidify its position as a major player in the payments industry in Brazil and will be well-positioned to capitalize on future growth opportunities in the region.
Stock Price
This announcement caused their stock prices to rise, with the stock opening at $228.8 and closing at $234.3, up by 2.8% from the previous closing price of 228.0. The purchase is expected to help Visa Inc bolster its presence in Latin America, where Pismo has established itself as a leader in digital payments and payment technology solutions in the region. The acquisition will also provide Visa with access to Pismo’s extensive network of local financial institutions and corporate customers, providing them with greater access to the region’s rapidly growing consumer base. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Visa Inc. More…
| Total Revenues | Net Income | Net Margin |
| 30.98k | 15.79k | 54.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Visa Inc. More…
| Operations | Investing | Financing |
| 19.16k | -2.79k | -13.6k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Visa Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 86.75k | 48.19k | 18.4 |
Key Ratios Snapshot
Some of the financial key ratios for Visa Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.1% | 9.1% | 62.9% |
| FCF Margin | ROE | ROA |
| 58.6% | 32.3% | 14.0% |
Analysis – Visa Inc Stock Fair Value
At GoodWhale, we analyzed VISA INC‘s financials and measured the intrinsic value of a share to be around $262.1. Our proprietary Valuation Line was used to make this determination. Currently, VISA INC’s stock is trading at $234.3, which is a fair price, but undervalued by 10.6%. Overall, it is an attractive investment opportunity at the moment. It is worth noting that stock prices can fluctuate and investors should always conduct their own analysis before making any decisions. More…
Peers
In the world of electronic payments, there are four major players: Visa Inc, Mastercard Inc, PayPal Holdings Inc, and American Express Co. All four of these companies are in constant competition with one another to gain market share. While Visa and Mastercard are the traditional giants in the industry, PayPal and American Express have been making inroads in recent years.
– Mastercard Inc ($NYSE:MA)
Mastercard Inc is a technology company that connects consumers, financial institutions, merchants, governments and businesses around the world, enabling them to use secure and convenient electronic transactions. As of 2022, Mastercard Inc has a market cap of 287.75B and a ROE of 110.3%. The company operates in two segments: Global Payment Solutions and Data & Services.
– PayPal Holdings Inc ($NASDAQ:PYPL)
Founded in 1998, PayPal Holdings, Inc. is a technology platform company that enables digital and mobile payments on behalf of consumers and merchants. PayPal has over 300 million active customers and handles over $232 billion in total payment volume on an annual basis. The company operates as a payment processor for online vendors, auction sites, and other commercial users, for which it charges a fee. In addition, PayPal offers a credit product called “Bill Me Later,” which allows customers to finance their online purchases.
– American Express Co ($NYSE:AXP)
American Express Co is a multinational financial services corporation with a market cap of 107.94B as of 2022. The company is headquartered in Three World Financial Center in New York City. American Express Co is best known for its credit card, charge card, and traveler’s cheque businesses.
Summary
Visa Inc. has recently announced that it will be acquiring Brazilian processor Pismo Soluções Tecnologicas Ltda for $1 billion in cash. This move is expected to help broaden the company’s reach in the Brazilian payments industry and provide Visa with improved payments infrastructure. From an investment standpoint, this acquisition is expected to be beneficial for Visa Inc. in the long term, as it could potentially expand their payments capabilities in Brazil and provide access to a larger customer base.
Furthermore, the deal could help the company to better compete with regional rivals and better position itself in the global payments market. Overall, Visa Inc.’s acquisition of Pismo could prove to be a smart move from both a strategic and financial standpoint.
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