Visa Inc. is suitable for the Enterprising Investor but not the Defensive Investor. The Defensive Investor has numerous concerns and in fact the only requirement of the Defensive Investor which the company passes is the market cap size.
We looked at 18 different companies this week. Here’s a summary of the ModernGraham Valuations.
Visa is suitable for Enterprising Investors but not yet for Defensive Investors. The Defensive Investor has a number of requirements that need ten years of existence as a publicly traded company, and while Visa has been around for a very long time, it has not been publicly traded for all that long.
We looked at 14 different companies this week. Here’s a summary of the ModernGraham Valuations. For more detailed analysis, click on the name of the company. To see screens of all of our valuations, be sure to get a copy of this month’s edition of ModernGraham Stocks and Screens! The Elite (Defensive or Enterprising and Undervalued) […]
Visa is not suitable for the Defensive Investor because it has not had a long enough history as a publicly traded company. The Defensive Investor requires ten years of publicly traded status before it may be suitable, as that helps ensure the reliability of the financial data.
Visa is not suitable for the Defensive Investor because it is a relatively “new” company after only having its IPO a few years ago. Having such a recent IPO makes the financial information less available, and as a result, Defensive Investors (those that do not have the time to do as much research as Enterprising Investors) should shy away from Visa. However, the company does appear that it may be suitable for Enterprising Investors.