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MasterCard Incorporated Message Board

  • dkatakmo dkatakmo Jan 31, 2013 1:02 PM Flag

    ma 650

    I just heard cnbc said ma will go up to 600 dollars folks.

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    • Maybe by end of year. The trailing multiple is getting a bit toppy. Forward P/E is relatively high as well. We either need raised guidance, announcements of increased expansion into other outlets/acquisitions, and/or news of them doubling down on buybacks to get there with any sustainability.

      I think a better metric for this company is the Market Cap. With global monetary policy pouring increasing seeds of future inflationary pressure, the circulation of money should continue to increase over the coming years. Even marginal increases greatly benefit the likes of MasterCard as well as Visa. So long as the total flow of cash through their products increases they will make more money year over year without even having to increase fee assessments. Collect .5% on $100 billion in one year and .5% on $150 billion in the next and you're profit increases without having to lift a finger. So long as prices continue moving higher and people continue to use cards to pay for them, MA will benefit without needing to expand or raise fees. It is the ultimate inflation hedge because it directly benefits from inflation (so long as that inflation is not too great to cause people to stop buying). Incredibly interest concept and business model. So long as they keep their books free of debt and limit their overhead, they are golden. Increase the buybacks and expand into new markets and you're compounding compounded results. Beautiful.

101.51+0.06(+0.06%)Sep 28 4:00 PMEDT