Contributor
nickn86
Posts: 130
Registered: ‎11-26-2012
Why is MC stock so much more valuable than Visa/Amex/Disc?

MA: $519.42/sh

V: $159.84/sh

AXP: $59.50/sh

DFS: $39.09/sh

 

MC stock goes for more than Apple nowadays...

 

Chase Sapphire Preferred - 5.6k (3/13) | Amex Premier Rewards Gold - NPSL (1/13) | Chase United MileagePlus Explorer Visa Signature - 9k (1/13) | Amex Delta Gold - 6k (9/12) | Citi Forward Visa - 10k (10/12) | Discover It - 2k (2/12) | Chase +1 Visa - $300 (2/11)
Frequent Contributor
OptimasPrime
Posts: 348
Registered: ‎08-17-2012
Re: Why is MC stock so much more valuable than Visa/Amex/Disc?

In terms of market cap ( share price x # of shares outstanding) a quick Google search indicates that visa is worth about 110 billion, whereas mastercard is worth about 65 billion.

 

So the short answer is that visa just has a significantly higher number of shares outstanding than mc does, which in turn dilutes the price of 1 visa share relative to mc.

EQ 778 | TU 776
Barclay US Airways WMC 7.5k | BCE 5.8k | BofA Travel Rewards 9.1k | Chase Marriott Premier 13k | Citi TYP WMC 6.5k | Freedom Visa Sig 8k| Discover it 10k
Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
Re: Why is MC stock so much more valuable than Visa/Amex/Disc?
[ Edited ]

You seem to missing one important factor, a companies market capitalization is price of shares * number of shares, price tells you nothing.

 

So in fact, MC's market cap is 64.54bn, Visa is106.95bn

 

 

Edit: beaten by OptimusPrime!

Contributor
nickn86
Posts: 130
Registered: ‎11-26-2012
Re: Why is MC stock so much more valuable than Visa/Amex/Disc?

I see, I see. 

 

Shows how little this lawyer knows about finance...

Chase Sapphire Preferred - 5.6k (3/13) | Amex Premier Rewards Gold - NPSL (1/13) | Chase United MileagePlus Explorer Visa Signature - 9k (1/13) | Amex Delta Gold - 6k (9/12) | Citi Forward Visa - 10k (10/12) | Discover It - 2k (2/12) | Chase +1 Visa - $300 (2/11)
Established Contributor
cashnocredit
Posts: 1,030
Registered: ‎07-18-2009
Re: Why is MC stock so much more valuable than Visa/Amex/Disc?
[ Edited ]

nickn86 wrote:

MA: $519.42/sh

V: $159.84/sh

AXP: $59.50/sh

DFS: $39.09/sh

 

MC stock goes for more than Apple nowadays...

 


It's not.The price of a share is not, itself, proportional to the value of an enterprise. You have to multiply it by the number of shares outstanding.  V is worth about 80% more than MA.

 

Oops. I see others covered it.  Need to read ahead.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Frequent Contributor
jake619
Posts: 496
Registered: ‎11-13-2012
Re: Why is MC stock so much more valuable than Visa/Amex/Disc?

Changes to Surcharging Fees in the United States

Beginning January 27, 2013, merchants in the United States and U.S. Territories will be permitted to impose a surcharge on consumers when they use a credit card.

 

The rest of the story is here.     Monday could be interesting...


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev



Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
Re: Why is MC stock so much more valuable than Visa/Amex/Disc?
It doesn't effect a certain amount of states including Cali, Florida, and Massachusetts a few others Already many threads about this

(Sorry couldn't quote while I'm on my phone)
Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Frequent Contributor
jake619
Posts: 496
Registered: ‎11-13-2012
Re: Why is MC stock so much more valuable than Visa/Amex/Disc?

creditnocash wrote:
It doesn't effect a certain amount of states including Cali, Florida, and Massachusetts a few others Already many threads about this

(Sorry couldn't quote while I'm on my phone)

You are correct, old news.  I was associating it to the stock topic and how this *may* have an effect on their valuation.


GangnamFICO wrote:

Because the chicks dig it when I throw down the card to the waiter and...it comes in handy if I'm short on cash until payday and need a short spot. AMEX gets the booty, and that's important when you're a Pirate.


Minor vulgarity edit --Rev