VISA INC. Overview of Business and Intrinsic Value of Shares

VISA INC is https://corporate.visa.com/ one of the world s leaders in digital payments.

Since early days of VISA INC in 1958, Visa has been in the business of facilitating payments between consumers and businesses. Visa focused on extending, enhancing and investing in proprietary advanced transaction processing network, VisaNet, to offer a single connection point for facilitating payment transactions to multiple endpoints through various form factors.

 

During fiscal year 2023, 276 billion payments and cash transactions with Visa s brand were processed by Visa or other networks, equating to an average of 757 million transactions per day. Of the 276 billion total transactions, 213 billion were processed by Visa.

 

Visa earns revenue by facilitating money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through innovative technologies.

FCFE Details of Visa INC. shown below, US$ in millions, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 13.33%
0	FCFE0	21,037	21,037
1	FCFE1	28,189	18,568
2	FCFE2	36,308	21,960
3	FCFE3	44,895	24,964
4	FCFE4	53,187	27,245
5	FCFE5	56,378	28,488
5	Terminal Value (TV5)	815,294	142,261

Intrinsic value of Visa INC.	$554,730
Market cap of Visa INC.	$50.552 Trillion
Intrinsic value of Visa INC. common stock (per share)	$344.55
Current share price on 11/15/2024	$309.64

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	4.36%
Expected rate of return on market portfolio(E(RM)	13.81%
Systematic risk of Visa INC. Common stock (β)	0.95
Required rate of return on Visa INC. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +0.95[13.81% - 4.36%]	13.33%

 

 

 

 

 

 

FCFE Growth rate Forecast

Visa INC. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	34.02%
2	g2 (Linear Interpolation)	28.88%
3	g3 (Linear Interpolation)	23.65%
4	g4 (Linear Interpolation)	18.47%
5	g5 (Single stage model)	6.02%

 

2023 Ratio Calculations

Retention rate	78.28%
Dividend yield	0.5%
Profit margin	52.89%
Asset turnover	0.36
Return on Asset	19%
Current Ratio	1.45
EPS	9.72
PE Ratio	31.86

 

 

 

 

 

 

 

 

 

Sources : Form 10K of Visa INC. for the fiscal year 2023 https://annualreport.visa.com/home/default.aspx , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.

 

 

HP INC. Overview of Business and Intrinsic value of Shares

HP INC is https://investor.hp.com/overview/default.aspx a leading global provider of personal computing and other digital access devices, imaging and printing products, and related technologies, solutions and services. HP INC sell to individual consumers, small- and medium-sized businesses ("SMBs") and large enterprises.

HP have three reportable Segments: Personal Systems, Printing and Corporate Investments.

Personal Systems offers commercial and consumer desktops and notebooks, workstations, thin clients, commercial mobility devices, retail point-of-sale ("POS") systems, displays, hybrid systems (includes video conferencing cameras and solutions, headsets, voice, and related software capabilities including all products and solutions acquired from Poly), software, support and services.

Printing provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on Graphics and 3D Printing and Personalization in the commercial and industrial markets.

FCFE Details of HP Inc. shown below, US$ in millions, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 14.6%
0	FCFE0	2937	2937
1	FCFE1	3195	2563
2	FCFE2	3522	2433
3	FCFE3	3933	2340
4	FCFE4	4447	2280
5	FCFE5	4714	2250
5	Terminal Value (TV5)	58112	14804

Intrinsic value of HP Inc.	$44203
Market cap of HP Inc.	$35.46 Billion
Intrinsic value of HP Inc. common stock (per share)	$45.15
Current share price on 11/13/2024	$36.81

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	4.36%
Expected rate of return on market portfolio(E(RM)	13.81%
Systematic risk of HP Inc.. Common stock (β)	1.09
Required rate of return on HP Inc. Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +1.09[13.81% - 4.36%]	14.66%

 

 

 

 

 

 

FCFE Growth rate Forecast

HP Inc.. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	8.8%
2	g2 (Linear Interpolation)	10.22%
3	g3 (Linear Interpolation)	11.67%
4	g4 (Linear Interpolation)	13.09%
5	g5 (Single stage model)	6.00%

 

2023 Ratio Calculations

Retention rate	68.21%
Dividend yield	2.92%
Profit margin	6.07%
Asset turnover	1.45
Return on Asset	8.81%
Current Ratio	0.73
EPS	3.33
PE Ratio	10.4

 

 

 

 

 

 

 

 

 

Sources : Form 10K of HP Inc. for the fiscal year https://investor.hp.com/overview/default.aspx , https://www.stock-analysis-on.net/ , https://finance.yahoo.com , https://companiesmarketcap.com/

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.

 

 

Marathon Oil Corporation : Overview of Business and Intrinsic value of Shares

 

 

 

Marathon Oil https://www.marathonoil.com is proud to responsibly produce the oil and gas the world needs while helping maintain the U.S. energy security. Being a safe and ethical operator mindful of its neighbours and communities is foundational to its business and for creating long-term value for all Marathon Oil stakeholders. Marathon Oil started in 1887, from the beginning it has operated as integrated oil company. Marathon Oil Corporation stock trade on the Newyork Stock Exchange under the ticker symbol :MRO

 

FCFE Details of Marathon Oil Corporation shown below, US$ in millions, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 16.9%
0	FCFE0	1911	1911
1	FCFE1	2131	1635
2	FCFE2	2404	1559
3	FCFE3	2743	1505
4	FCFE4	3166	1469
5	FCFE5	3325	1451
5	Terminal Value (TV5)	29340	9530

Intrinsic value of Marathon Oil Corporation	$22970
Market cap of Marathon Oil Corporation	$1.351 Trillion
Intrinsic value of Marathon Oil Corporation common stock (per share)	$40.58
Current share price on 11/11/2024	$28.62

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	4.36%
Expected rate of return on market portfolio(E(RM)	13.81%
Systematic risk of Marathon Oil Corporation. Common stock (β)	1.33
Required rate of return on Marathon Oil Corporation Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 4.36% +1.33[13.81% - 4.36%]	16.9%

 

 

 

 

 

FCFE Growth rate Forecast

Marathon Oil Corporation. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	11.52%
2	g2 (Linear Interpolation)	12.82%
3	g3 (Linear Interpolation)	14.12%
4	g4 (Linear Interpolation)	15.42%
5	g5 (Single stage model)	5.00%

 

2023 Calculations

Retention rate	83.8%
Dividend yield	1.86%
Profit margin	23.2%
Return on Equity	13.8%
Asset turnover	0.34
Financial Leverage	1.74
EPS	2.74
PE Ratio	10.4

 

 

 

 

 

 

 

 

 

Sources : Form 10K of Marathon Oil Corporation for the fiscal year 2023https://www.marathonoil.com/, https://www.stock-analysis-on.net/ , https://finance.yahoo.com/ , https://companiesmarketcap.com/

 

 

Disclosures

This report is based on information obtained in good faith from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments.

 

 

Overview of Asian Paints Limited and Intrinsic value of shares

 

 

Overview of Asian Paints Limited & Intrinsic Value calculation of shares

Asian Paints https://www.asianpaints.com/ is India s leading paint and d cor company and ranks among the top 10 Decorative coating companies globally. Asian Paints manufactures a wide range of paints for decorative and industrial use and also offers water proofing, adhesives and services under its portfolio. The company is also present in the Home d cor segment and offers Modular kitchens and wardrobes, Bath fittings and sanitary ware, decorative lightings and wall coverings.

 

FCFE Details of Asian Paints Limited shown below, Indian Rupees in Crores, except per share data

Year	Value	FCFE or Terminal Value	Present Value at 9.58%
0	FCFE0	7347	7347
1	FCFE1	8471	6705
2	FCFE2	9585	7055
3	FCFE3	10640	7285
4	FCFE4	11101	7380
5	FCFE5	11844	7026
5	Terminal Value (TV5)	438803	42798

Intrinsic value of Asian Paints Limited	320521 Crore
Market cap of Asian Paints Limited	2.795 Trillion
Intrinsic value of Asian Paints Limited common stock (per share)	Rs.3342
Current share price on 05/11/2024	Rs.2888

 

Required rate of Return

Assumptions

Rate of return on LT Treasury Composite(Rf)	7.3%
Expected rate of return on market portfolio(E(RM)	14%
Systematic risk of Asian Paints Limited. Common stock (β)	0.34
Required rate of return on Asian Paints Limited Common Stock (r) Calculation : Rf + β(E(RM)- (Rf) = 7.36% +1.1[14% - 7.36%]	9.58%

 

 

 

 

 

FCFE Growth rate Forecast

Asian Paints Limited. H-Model

Year	Value	Growth Rate
1	g1 (PRAT Model)	15.31%
2	g2 (Linear Interpolation)	13.15%
3	g3 (Linear Interpolation)	11%
4	g4 (Linear Interpolation)	4.33%
5	g5 (Single stage model)	6.7%

 

2024 Calculations

Retention rate	54.11%
Dividend yield	0.98%
Profit margin	15.35%
Return on Equity	28.61%
Asset turnover	1.20
Financial leverage	1.54
EPS	56.95
PE Ratio	49.83

 

 

 

 

 

 

 

 

 

Sources : https://www.asianpaints.com/content/annualreport/annual-report-23-24.html, https://www.asianpaints.com/, https://finance.yahoo.com/ , https://companiesmarketcap.com/