Visa cuts ties with FTX after cryptocurrency exchange files for bankruptcy

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Visa Inc Intrinsic Value – Visa Inc ($NYSE:V). is a multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards.

However, FTX filed for Chapter 11 bankruptcy protection in the face of its multibillion-dollar shortfall and its inability to meet a colossal amount of customer withdrawals. As a result of FTX’s bankruptcy filing, Visa is ending its global card agreements with the cryptocurrency exchange. A company spokesperson told Reuters that Visa is “continuing to monitor” the situation and “will make appropriate decisions as the situation develops.”

Stock Price

On Monday, VISA INC stock opened at $203.5 and closed at $206.9, up by 0.9% from previous closing price of 205.0. The company has been in the news recently for cutting ties with FTX, a cryptocurrency exchange that filed for bankruptcy. Most media outlets have been reporting on the story positively, with many praising VISA for its decision. Some have even argued that this move could help legitimize cryptocurrency exchanges and boost confidence in the industry.

Critics, however, argue that VISA’s decision could backfire and that the company may have made a mistake by severing ties with FTX. Only time will tell how this story will unfold, but it’s certainly one that has everyone in the financial world talking.

VI Analysis – Visa Inc Intrinsic Value Calculator

Visa Inc. (NYSE: V) is a multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards, prepaid cards, and gift cards. Visa does not issue cards, extend credit, or set rates and fees for consumers. Rather, Visa provides financial institutions with Visa-branded products that they then use to offer credit, debit, prepaid and cash-access programs to their customers. The intrinsic value of a share is the present value of all future cash flows that the business is expected to generate. The VI Line is a tool that estimates the intrinsic value of a company’s stock. Based on the VI Line, the intrinsic value of a Visa Inc. share is around $243.1.

However, the stock is currently trading at $206.9, which means it is undervalued by 15%.

VI 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 a global payments technology company that operates the world’s largest electronic payments network. Visa enables consumers, businesses, governments and financial institutions to use digital currency instead of cash and checks. Visa’s products and services facilitate electronic commerce through the transfer of value and information among financial institutions, merchants, consumers and businesses. Visa’s shares are traded on the New York Stock Exchange under the ticker symbol “V.”

The company has a diversified product portfolio and a large customer base. Visa is a market leader in the payments industry and is well-positioned to benefit from the growth of electronic commerce. The company has a history of strong financial performance and is expected to continue to grow earnings at a healthy rate.