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Visa V has been in consolidation for two years, since trading at an all-time high of $252.67 on July 27, 2021.This was warranted considering that V was trading 37x earnings, significantly higher than its typical range of 25x 30x earnings. Now that the fundamentals have caught up to its stock price, V may be poised for a breakout. *NTM Price to Earnings Ratio: 26.67x *10-Year Mean: 27.79x *NTM Free Cash Flow Yield: 3.80% *10-Year Mean: 3.87 %

Today, investors are forecasted to receive ~4% more in earnings per share and a free cash flow yield that is in-line with its 10-year average. Considering its fundamentals, V appears to be fairly valued and has attractive growth potential going forward.

Before analyzing Vs valuation further, lets have a look at why V is a high-quality business. Balance Sheet Cash & Short-Term Investments: $16.59B Long-Term Debt: $20.60B

V has a strong balance sheet, evident from its AA- S&P Credit Rating.Return On Capital 2017: 21.6% 2018: 24.6% 2019: 27.5% 2020: 21.4% 2021: 24.3% 2022: 30.8% LTM: 32.1% Return On Equity 2017: 20.4% 2018: 30.9% 2019: 35.2% 2020: 30.7% 2021: 33.4% 2022: 40.9% LTM: 42.4%

Vs return metrics are stellar, highlighting the financial efficiency of the business.Revenues 2015: $15.91B 2016: $17.66B 2017: $18.35B 2018: $20.60B 2019: $22.97B 2020: $21.84B 2021: $24.10B 2022: $29.31B CAGR: 9.12% Free Cash Flow 2015: $6.17B 2016: $5.05B 2017: $8.61B 2018: $12.22B 2019: $12.02B 2020: $9.70B 2021: $14.52B 2022: $17.87B CAGR: 16.40% Net Income(Earnings) 2015: $6.32B 2016: $5.99B 2017: $6.69B 2018: $10.30B 2019: $12.08B 2020: $10.86B 2021: $12.31B 2022: $14.95B CAGR: 13.08%

Over the past 7 years V has been able to grow its revenues, free cash flow, and net income at appreciable rates.ShareBuybacks 2013 Shares Outstanding: 2.62B LTM Shares Outstanding: 2.11B

By decreasing the number of its shares by about 20% in the last 10 years, V managed to boost its earnings per share by 25% (assuming no growth). This means that each share now represents a larger portion of the company's earnings, resulting in increased profitability for investors.

As you can see, V is a high-quality business with a wide moat.

Now lets shift our focus to its valuation.

Benjamin Graham, widely regarded as the father of value investing, advocated for a principle known as the "2G" rule. According to Graham, investors should not pay more than twice the growth rate (2G) of a business.

For instance, if a company is projected to achieve a 10% compounded annual growth rate (CAGR) in earnings over the next five years, a price-to-earnings (P/E) ratio of 20x might be considered reasonable. However, if the expected earnings growth rate is 5% compounded annually over the same period, a P/E ratio of 20x would be considered unreasonable, as the investor would be paying four times the growth rate.

With a multiple of 26.67x, V would need to achieve approximately a 13.34% CAGR in earnings over the next five years to justify its current valuation. Interestingly, this growth target is slightly below the forward estimates, suggesting that V has the potential to meet or slightly surpass the markets expectations.

V is scheduled to announce its quarterly results after the market closeon July 25, 2023. The anticipation of an earnings beat or a positive earnings report has the potential to serve as a fundamental catalyst, that could propel V's shares to reach new all-time highs.

*The valuation data utilized in this article is subject to potential changes and may not reflect current market conditions or future developments beyond the time of submission for publication.

Disclosure: I am long V. Babylon Capital, its representatives, and client(s) have positions in the securities discussed in this article. The information contained in this article is intended for informational purposes only and should not be construed as investment advice to meet the specific needs of any individual or situation. Past performance is no guarantee of future results. Information contained in this article has been obtained from sources believed to be reliable but is not guaranteed as to completeness or accuracy.

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Gurriel makes history with HR off 103.9 mph pitch

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Gurriel makes history with HR off 103.9 mph pitch

PHOENIX — San Diego Padres reliever Mason Miller was bringing the heat on Tuesday night.

Arizona Diamondbacks outfielder Lourdes Gurriel Jr. returned the favor.

Gurriel crushed a 103.9 mph fastball from Miller into the left-field seats for a two-run homer in the eighth inning, tying the game at 5-all. It was the hardest hit pitch for a homer since MLB started pitch tracking in 2008.

It was part of a two-homer night for Gurriel. The veteran also hit a two-run shot in the first inning.

The hard-throwing Miller was acquired from the Athletics at last week’s trade deadline. He routinely throws over 100 mph and hit 104.2 mph with his hardest pitch on Tuesday night.

Luis Arráez hit a go-ahead single in the 11th inning and the Padres tacked on four more runs to beat the Diamondbacks 10-5.

The Associated Press contributed to this report.

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Sasaki taking next step in rehab: No shoulder pain

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Sasaki taking next step in rehab: No shoulder pain

LOS ANGELES — Roki Sasaki, finally ramping up after spending the past three months on the injured list, said Tuesday he had “no pain” in his right shoulder and expressed confidence in his ability to regain fastball velocity, which began to tail off before he was shut down.

“I feel better about being able to throw harder, especially because I’m completely pain free,” Sasaki said through an interpreter. “With that being said, I do have to just face live hitters and see how my mechanics, you know, hold. Just being consistent; being able to do that consistently.”

Sasaki is scheduled to pitch three simulated innings at Dodger Stadium over the weekend before going on a rehab assignment. The Dodgers will stretch Sasaki back out as a starting pitcher. How he eventually fits in, though, remains to be seen.

The Dodgers’ rotation is currently full, with Blake Snell and Tyler Glasnow back healthy, Shohei Ohtani stretched out to at least four innings, and Clayton Kershaw, Yoshinobu Yamamoto and Emmet Sheehan making up the other three spots of a six-man rotation.

Asked if he could eventually see Sasaki occupying a bullpen spot, specifically in October, Dodgers manager Dave Roberts said: “I’m going to hold on that one. I do know we’re going to take the 13 best pitchers. I’ve been a part of many postseason rosters, so we’re going to take the 13 best pitchers. If Roki is a part of that in some capacity, then that would be great. And if he’s not, then he won’t be.”

Before that is even entertained, Sasaki simply has to perform better.

The 23-year-old right-hander arrived in the major leagues after being one of the most hyped pitchers to come out of Japan, armed with a triple-digit fastball and a mind-bending splitter. But evaluators throughout the industry also acknowledged he still needed more seasoning. That wound up being the case early, even more so than many anticipated.

Through his first eight starts, before landing on the IL with what the Dodgers described as a shoulder impingement, Sasaki posted a 4.72 ERA and failed to complete six innings on seven occasions. In a stretch of 34⅓ innings, he walked almost as many batters (22) as he struck out (24). The four-seam fastball, which often lacked command, fell into the mid-90s over his last handful of outings. Often, the splitter functioned as his only legitimate major league pitch.

Sasaki acknowledged that “American hitters have a different approach at the plate compared to Japanese hitters.”

“I can’t really attack the same way that I used to in Japan,” he added.

With that in mind, Sasaki has begun to experiment with a two-seam fastball, a pitch that runs in on opposing right-handed hitters and is designed to generate early contact, ideally ground balls. The hope is that it eventually functions as a second fastball to pair with his splitter and slider.

The focus at this point, though, is on nailing down the mechanics of his delivery so that his shoulder no longer becomes an issue. Sasaki said he now has “a better understanding a second time through on where the pain came from and how to make sure that the pain doesn’t come back.” His mechanics are “not 100 percent right now,” Sasaki added, “but I think it’s in the right direction.”

When he returns, Sasaki will have to prove he belongs.

“My every intention is to get back on the major league mound and pitch again,” he said. “With that being said, you know … I do need to fight for the opportunity, too. I don’t think that I’ll just be given the opportunity right away.”

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Brewers cap best 60-game stretch in team history

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Brewers cap best 60-game stretch in team history

ATLANTA — Before Tuesday night’s 7-2 win at Atlanta, Milwaukee Brewers manager Pat Murphy suggested “most people couldn’t tell you five players on our team.”

A look at the standings would indicate more Brewers players soon will be recognized by more fans.

After all, it’s difficult to overlook a team that not only continues to extend its lead in the NL Central but also boasts the best record in the majors.

“What we’re doing in here right now is special,” said right-hander Freddy Peralta after allowing only four hits and one run in five innings while setting a career high with his 13th win.

“We’re just enjoying the game and coming to compete every day,” Peralta said. “We have to keep it that way.”

Peralta was surprised to learn he had established a career high for wins in a season.

“It always feels good to get the win as a team but also personally for me, it’s a big deal,” Peralta said.

Murphy said Peralta, who was named to this year NL All-Star team, is “just getting started. … This is the best Freddy has ever been. I thought he was really, really good.”

The Brewers lead second-place Chicago by four games in the NL Central following the Cubs’ 5-1 loss to the Cincinnati Reds on Tuesday night.

The Brewers have a five-game winning streak. They have won six straight road games and are 44-16 in their last 60 games overall. It’s the best 60-game stretch in team history.

Murphy said it will be important for players to keep their focus in the final stretch of the regular season.

“We really have to be disciplined right now, more than ever before,” Murphy said after the Brewers (69-44) moved 25 games over .500, their best record of the season.

Milwaukee’s road success has been an important part of the surge to first place. The team’s 33-24 road record gives the Brewers the best winning percentage (.579) away from home in baseball. The record includes winning the first two games of the three-game series in Atlanta.

“You can’t assume everything is going to go our way going forward,” Murphy said, adding he recognized the Brewers were fortunate to avoid giving up more runs Tuesday night when the Braves left 14 runners on base, tied for their highest total in the last two seasons.

The Brewers also have made key moves this year, including their trade for first baseman Andrew Vaughn on June 13.

Vaughn has an 11-game hitting streak, matching his career high, following a two-run single on Tuesday night. He is hitting .429 with four homers and 14 RBI during is hitting streak. He is hitting .370 since joining the Brewers.

Murphy said his players “are hungry” and “don’t every try to play safe.”

As for the lack of national recognition, Murphy just smiled.

“That’s the fun of it,” he said.

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