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No. of Recommendations: 2
Here's my quick calcs:

MA V Notes
Shares Out (m) 136 857
Price $200 $41 Assume Offering Price at high end of range
Market Cap (m) $27,200 $35,137
Net Cash (m) $3,000 $4,000 (additional $3B restricted to pay liabilities)
EV (m) $24,200 $31,137

2007 Sales (m) $4,070 $5,193
Op Income (m) $1,108 $1,537 (excluding litigation reserve)
P/S 6.7 6.8
EV/S 5.9 6.0
P/OI 24.5 22.9
EV/OI 21.8 20.3

So Visa at $41 is perhaps a slightly better value than MA at $200. Perhaps it deserves a higher multiple due to their size. But I'd rather own MA at $200 than V at $45 or higher.

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