st0ckman's visa ipo analysis

Visa at:

$42, that would put it at PE at 26.6,
$44, that would put it at PE at 28,
$50, that would put it at PE at 31.6,
$55, that would put it at PE at 35,
$60, that would put it at PE at 38,
$65, that would put it at PE at 41,

MA was offered and opened at PE of 15 at $39 IPO and today's price of
MA is at PE of 26, which puts Visa at par with MA at $42, given they
have same earnings.

DIRECT COMPETITOR COMPARISON

MA AXP DFS Pvt1 Industry Market Cap: 27.33B 48.56B 7.28B N/A 132.24M Employ­ees: 5,000 67,700 12,800 N/A 51 Qtrly Rev Growth (yoy): 27.80% 12.40% 4.60% N/A 16.30% Revenue (ttm): 4.07B 31.45B 4.10B N/A 110.01M Gross Margin (ttm): 100.00% 44.16% 100.00% N/A 39.62% EBITDA (ttm): 1.23B 8.89B N/A N/A 14.65M Oper Margins (ttm): 27.83% 26.21% 32.58% N/A 0.27% Net Income (ttm): 1.09B 4.05B 588.63M N/A -386.67K EPS (ttm): 8.002 3.355 1.229 N/A N/A P/E (ttm): 26.04 12.52 12.37 N/A 18.08 PEG (5 yr expected): 1.51 1.11 1.66 N/A 1.17 P/S (ttm): 6.72 1.54 1.78 N/A 1.64

AXP = American Express Company

DFS = Discover Financial Services

Pvt1 = Visa Inc. (privately held) *****this has to be updated****

Industry = Business Services

VISA Inc.

(NYSE: V)

Last Trade:	56.50

last trade on 3-19-08 v's first day trading.


-keep in mind that people with pre market shares usually dump them for an immediate profit. these sellers need to be washed out of the market. this is one of the reasons master card did not do well right away. master card also did very well because it came out with a pe of 15 then the stock went down which also decreases the pe ratio bringing more value into the stock. as of the close yesterday the stock has a pe ratio of roughly 36, the highest pe in the sector. as a value play the stock is expensive. keep in mind the average pe on the dow jones is 14.27.

DOW JONES AVERAGES INDEX FUNDAMENTALS

Index P/E (Incl. Negative) P/E (Excl. Negative) P/Book Value Div. Yield P/Sales P/Cash Flow Trailing Projected Trailing Projected Industrial Average 14.27 12.60 14.01 12.60 3.31 2.57 1.06 16.14 Transportation Average 14.73 13.88 14.73 13.88 2.16 1.42 0.79 8.34 Utilities Average 15.30 14.21 15.30 14.21 2.05 3.39 1.34 6.84

visa is seen by some(video below) as a hedge against a recession or a weak economy because visa charges per sale, they do not finance and people use their cards more in tough times.

lets not forget the markets are in a down trend and in very bad shape. as many of you know i am expecting a major crash in the markets world wide.

keep an eye on the highs and lows and of course the trend. i would not go long this stock with out a option hedge. because of v's price to earnings ratio this is not a master card mirror. dont get me wrong it could do very well. ide just sit on the side lines for now. subscribe to my blog for updates. you can subscribe with any reader or your email.