@parkevtatevosiancfa9544

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Avg. Quality

75

Success Rate

17.28

Analysis

544
Correct
94
Fail
281
Pending
169
Ineffective
0
Total Quality
Score
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Pending
V
Long Entry 347.9200 2025-12-12 21:15 UTC
Target 479.9500 Fail 228.1400
Risk/Reward 1 : 1
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V
Stocks
Fundamental
1H
Analysis Predict Bull Market
The analysis focuses on Visa (V) as a compelling investment opportunity, highlighted by its robust financial performance over the past decade. Revenue has grown from $15 billion to $40 billion between 2016 and the most recent trailing 12-month period, demonstrating an 11.8% Compound Annual Growth Rate (CAGR). Profitability metrics are notably strong, with Return on Invested Capital (ROIC) increasing from 13.7% in 2016 to 25% recently, representing a 7.1% CAGR. This ROIC is more than twice Visa's Weighted Average Cost of Capital (WACC) of 8.7%, indicating significant shareholder wealth creation. The Operating Cash Flow to Sales ratio has also improved from 37% to 57.6%, with a 5.2% CAGR, positioning Visa as a leader among comparable companies. Despite these strong fundamentals, the company is perceived as undervalued, trading at a forward Price-to-Earnings (P/E) of 25 and a forward Price-to-Operating Cash Flow (P/OCF) of 23. A proprietary discounted cash flow model suggests an intrinsic value per share of $479.95, significantly above the current market price of $325.92. This valuation discrepancy is partly attributed to regulatory concerns surrounding Visa and Mastercard's market position, which have tempered the stock price, creating a buying opportunity.
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