by Bruce Walker China’s Industrial Commerce Chamber announced earlier this month that the nation’s biopharmaceutical industry is booming. According to the report published in local media outlet ...
view full storyInvestors, the usual suspects being value investors, use specific valuation metrics in their search for financially sound companies selling at cheap prices. Price to book value and price to cash flow are two of the most widely used.
The current market conditions give level headed investors a great buying opportunity.
Global Payments (GPN) common stock currently trades at a price earnings ratio of 15.9, slightly above its 10 year median of 15. The price to book ratio is 2.92. Its price to cash flow ratio sits at 10.7.
Global Payments operates in a financial services industry which is widely diversified and multifaceted along product and service offerings. This makes it tricky for direct comparisons. MasterCard (MA) and Visa (V) are the best candidates for peer analysis.
So, how does Global Payments valuation compare to its industry peers? Very well indeed, as the table below illustrates:
| Company | Current P/E | Industry Average P/E | Historical P/E | Price to Book Value | Price to Cash Flow |
| Global Payments | 15.9 | 21.8 | 15 | 2.92 | 10.7 |
| Master Card | 18.1 | 21.8 | 19 | 6.79 | 16.3 |
| Visa | 18.6 | 21.8 | 25 | 2.48 | 16.9 |
This company is the leader in the U.S. with respect to credit and debit card volumes. 45% of total revenues come from outside the U.S. This division has been performing well recently. On the financial position front, Global Payments debt to equity ratio is 0.53, well below the industry average of 1.33.
An undervalued, financially sound company with good growth prospects home and abroad, this stock is a sound choice. To continue reading, click here.
[...] trading around $100.00, near its 52-week high of 103.45, and up nearly 30% since the time I last recommended it. The company has been buoyed by an increase in consumer confidence and an expansion in business. [...]
[...] trading around $100.00, near its 52-week high of 103.45, and up nearly 30% since the time I last recommended it. The company has been buoyed by an increase in consumer confidence and an expansion in business. [...]
[...] trading around $100.00, near its 52-week high of 103.45, and up nearly 30% since the time I last recommended it. The company has been buoyed by an increase in consumer confidence and an expansion in business. [...]