Market Summary and Value Calculation.docx - Running head MARKET SUMMARY AND VALUE CALCUATION Market Summary and Value Calculation Name Institution

Market Summary and Value Calculation.docx - Running head...

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Running head: MARKET SUMMARY AND VALUE CALCUATION 1 Market Summary and Value Calculation Name Institution Affiliate Course Date
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MARKET SUMMARY AND VALUE CALCULATION 2 Market Summary MasterCard Inc. was launched in 1966, but the company went public in 2006. Currently the company has its footprint in most of the developed and developing countries in America, Europe, Asia, and Africa. The company performance has increased significantly since it was listed in the stock market. In 2006, the share was trading at $4.89 per share, while in 2019, the same stock is trading at an average of $265.67 per share. The performance of the company is attributed to the growth of people shopping online. Currently, people use a credit card more than any other method of payment. The growth of the credit card is expected to grow in the next five years since more and more people prefer to use the card instead of the cash. According to (Porter, Swerdlow, & Staples, 2019) Cashless trend seems to be on the rise; moreover most of the federal reserve in many countries have encouraged their citizens to shift from cash to card payment. MasterCard Inc. is likely to grow in the next five years since it has spent billions of dollars on new technologies. For example, in 2018, the company introduced AI Express that uses Artificial Intelligence to notifies MasterCard of any transaction that may be suspected to be fraudulent. The company relies on innovation is critical in the long run since new technology guarantees the company's future. Currently, the common lag second behind the market lender Visa (V); however, compared to its arch-rival the company stock prices have been growing at a higher rate compared to its competitor. According to stock analysts Chuck Akre, no word in English can describe the improvement of MasterCard Inc.'s return on capital. The words of Akre were as result of MasterCard Inc. share appreciating by 1590% compared to S&P index that has appreciated by 230% for the last ten years.
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MARKET SUMMARY AND VALUE CALCULATION 3 Market Analyst Opinion According to Timothy Ronaldson, even if the economic condition in the United States slows down, the stock price for MasterCard Inc. will continue to increase since the consumer
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  • Spring '17
  • HERICK ONDIGO

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