The first capital today
Financial capital
As of 07/18/2025 03:59 pm
- 52 weeks
- 128.23 dollars
▼
221.95 dollars
- Profit
- 1.10 %
- P/E ratio.
- 18.33
- The target price
- 222.07 dollars
In mid -May 2025, Capital One Financial Corporation Nyse: cof The finishing touches on it 35.3 billion dollars acquisition of Discover Financial Services (DFS). This step has already helped the teacher to pay its shares with more than 25 %. This impressive performance brought the price of one capital share Near the highest levelsInvestors lead to a decisive question: After such a strong round, is it the best growth story that has already been priced?
A detailed examination of the company’s structure and the new company’s strategy reveals that the transformation may just start. Data provides convincing state of long -term continuous growth in stocks, based on a newly and more profitable business model.
What does the ownership of the network mean for capital profits
The most important change in this merger is a concept known as vertical integration. Think about it in this way: Before the deal, Capital One was renting space on the highways for the company’s VISA and MasterCard. Every time a capital card customer uses, the company paid a result. Now, by owning Discover, Capital One owns one of these main highways.
This transformation from the network tenant to the network owner has a direct and important financial effect. Management projects will generate the deal in appreciation $ 2.7 billion in annual synergy by 2027. The synergy indicates the financial benefits that arise from a mixture of two companies. In this case, they stem from the cost savings (no longer pays the fees to the visa, MasterCard) and the new revenue opportunities that the network ownership will bring.
For investors, this is very important. These billions of dollars are expected to flow directly to the company’s final result, which increases profits and makes businesses more valuable on the basis of each post. This determines new and repeated and Source of high margin revenueIt is a strong basis for supporting the long -term rating.
How the capital is planned to increase profits
In addition to the immediate benefits of possession of the network, the integration creates several clear paths for future growth. These stimuli are expected to feed higher profits, and therefore, the rise in the share price over time.
- Incorrated growth opportunity: As the largest source of credit cards in the United States through distinguished loans, at Capital One is a huge and guaranteed customer base. The company can now strategically deport card portfolios to its own discovery network. Each card is more profitable because the capital maintains the treatment fees. This provides a long -term internal growth engine that can systematically run for years to come.
- A clear way to higher profits: The financial goal of this new model is clear. Management projects will enhance acquisition EPS at more than 15 % by 2027. The clear and reliable path of EPS growth of two numbers is one of the most reliable engines to estimate the stock price.
- High -value innovation leadership: Capital One has freedom to create new products and services. The company can now develop a distinct travel card more effectively to compete with high -end products such as Chase Sapphire Reserve and American Express Platinum. Success in this market would attract high -quality high -quality customers, diversify its business, and create strong new revenue flows that have not yet been taken at the current share price.
Why does Wall Street see more upward trend
Even after its strong gathering, a closer look at the company’s evaluation and the data of the company’s analysis indicates that the shares are still at a reasonable price. The main measure of this is the price ratio to the profits forward (P/E), which compares the current price of the share with its expected profits over the next 12 months. It is a way to ask, “What do I pay today to tomorrow’s profits?”
Capital Ones today
222.07 dollars
1.74 % upModerate purchase
Based on 18 analyst classifications
| The current price | 218.26 dollars |
|---|---|
| High expectations | $ 258.00 |
| Average expectations | 222.07 dollars |
| Low expectations | $ 176.00 |
Capital Ones details
With P/E forward about 14x, Capital One provides an attractive assessment. This is especially noticeable given the company’s clear path for a significant growth in profits. In comparison, the average P/E Mediterranean forward in the financial sector is about 15.5X, which also indicates that the capital evaluation that still has the possibility to estimate it.
Financial professionals and industry analysts penetrate this opinion. the Classification of 18 analysts is a moderate purchaseWith 14 recommendations to buy shares. Although four classifications have been placed early in the year are still advancing in the total classification, many companies have raised prices in prices or upgrading their Hold’s assessments since the deal closed, indicating that the remaining four positions may follow its example.
These promoted goals, which represent analysts’ expectations for 12 months of stock value, indicate a large area of growth. Since the company has completed the merger, five companies have rejuvenated shares, with a average reproach for about 247.00 dollars. This indicates Healthy ascension With the market continues to control its assessment of the share.
A company turned to growth
Discover’s acquisition was a strategic change for games that created a more profitable and powerful company. The clear road to higher profits, driven by huge synergy and New growth stimuliProvides the strong logical basis for the continued power of inventory.
For investors who have a long -term perspective, it seems that Capital One is now in a good position to provide a great value to shareholders in the coming years, making a convincing issue that his new chapter of growth has just started.
Before you think about Capital One Financial, you will want to hear this.
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