V - Embedded Expectations Analysis - 2019 09 11
Visa Inc. (V:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 30.4x Uniform P/E, implying bullish expectations for the firm. However, management may be concerned about their marketing investments, VisaNet, and their Payworks acquisition.Specifically, management may be concerned about further expense growth, and they may lack confidence in the effectiveness of their marketing investments. Furthermore, they may be exaggerating the security and ease of use of their Secure Remote Commerce platform, and may be concerned about their ability to continue enabling electronic payments. Moreover, they may lack confidence in their ability to make VisaNet the best electronic payment method, and may be exaggerating the value of their Earthport, Verifi, and Paywoks acquisitions. Finally, they may be exaggerating the value of their partnerships with Gojek, PayPal, and Rappi.
Visa is engaged in digital payments. The company facilitates payments between consumers and businesses. The company is focused on its proprietary network, VisaNet, to provide products and services. The company provides a portfolio of business payment solutions, including small business, corporate (travel) cards, purchasing cards, virtual cards/digital credentials, non-card cross-border business-to-business payment options and disbursement accounts, covering various main industry segments around the world. The company also provides several capabilities and services, including fraud prevention and security, processing, loyalty, merchant and digital solutions, consulting and data solutions.
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