Visa Inc Stock Intrinsic Value – Visa Nears Acquisition of Pismo, a Brazilian Payments Firm
June 16, 2023
🌥️Trending News
Visa Inc ($NYSE:V)., the world’s largest payment technology company, is reportedly close to finalizing the acquisition of Pismo, a Brazilian payments company. The purchase marks yet another strategic move for Visa, which has been aggressively expanding its global reach in recent years. It provides a wide range of payment services, from debit and credit cards to prepaid cards and digital wallets. The company is well-known for its security and reliability, and serves over 3 billion consumers worldwide. The acquisition of Pismo, if successful, would be a major milestone in Visa’s global expansion efforts.
Pismo is one of the leading payment solutions providers in Brazil, and a major player in the Brazilian payments market. By acquiring Pismo, Visa would gain access to a whole new range of consumers in Brazil, as well as strengthen its foothold in Latin America. The move comes at a time when more and more businesses are adopting digital payments. With the acquisition of Pismo, Visa would be able to tap into the lucrative Brazilian payments market and further solidify its position as the world’s leading payment technology provider.
Share Price
On Friday, VISA INC stock opened at $223.6 and closed at the same price, up by a slight margin of 0.2% from its previous closing price of 223.0. This acquisition is expected to be beneficial to both companies as it will expand VISA’s market reach in the region. The details of the transaction have not been disclosed as of yet, but this move could potentially strengthen VISA’s presence in the payments industry. It is yet to be seen if the acquisition will be able to provide the expected benefits for VISA Inc. 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 Intrinsic Value
GoodWhale recently conducted an analysis of VISA INC‘s fundamentals and determined that the intrinsic value of its share is around $262.9, calculated by our proprietary Valuation Line. After careful consideration of all variables, it was determined that the stock is currently being traded at a fair price of $223.6; this is 14.9% undervalued. Thus, by investing in VISA INC stock, investors will be able to benefit from the potential upside of its undervalued share price. More…
Peers
In the world of electronic payments, there are four major players: Visa Inc, Mastercard Inc, PayPal Holdings Inc, and American Express Co. All four of these companies are in constant competition with one another to gain market share. While Visa and Mastercard are the traditional giants in the industry, PayPal and American Express have been making inroads in recent years.
– Mastercard Inc ($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. is an American multinational financial services corporation offering electronic payment solutions for consumers and businesses. Recently, the company has been actively investing in the payments sector in Brazil, as evidenced by its reported acquisition of Pismo, a Brazilian payments firm. This move is a strategic step for Visa, as it will allow it to expand its presence in the Brazilian market and gain access to a larger range of payment services, such as digital wallets.
Additionally, Visa’s acquisition of Pismo is expected to bring cost efficiencies to its operations, as well as leverage the strengths of both companies. In terms of financial performance, Visa’s stock has been trending upwards for the past several months. The stock has been propelled by strong customer growth and expanding operational margins, suggesting that investors are increasingly bullish about the company’s growth prospects. Going forward, Visa Inc. is likely to remain a major player in the payments industry due to its strong brand recognition and innovative products and services.
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