Ant Group wants to raise 34.5 Billion USD by means of IPO keeping market value of Ant Group at approximately 310 Billion USD. This valuation is much higher than PayPal payment app which is World famous payment solution. So we are considering Ant Group IPO is over priced.
PayPal is trading at valuation of 235 Billion USD. Generally it used to trade between 180 Billion USD and 210 Billion USD.
But due to Covid-19, more people are preferring online shopping and so they need online payment. So PayPal usage also increased recently. So Market value of PayPal went up from 200 Billion USD Market value to 235 Billion USD market value.
PayPal Revenue and Net Income for FY 2019
- PAYPAL HOLDINGS Annual Revenues for 2019-DEC ending is 17.77 Billion USD.
- PAYPAL HOLDINGS Annual Net Profit for 2019-DEC ending is 2.45 Billion USD.
- PAYPAL market value as on OCT-28-2020 is 235 Billion USD.
Ant Group Revenue and Net Income for FY 2019
- ANT GROUP Annual Revenues for FY-2019 : 17.82 Billion USD.
- ANT GROUP Annual Net Profit for FY-2019 : 2.67 Billion USD.
Visa Revenue and Net Income for FY 2019
- VISA Annual Net Profit for 2019-DEC ending is 12.08 Billion USD.
- VISA market value as on OCT-28-2020 is 398 Billion USD.
MasterCard Revenue and Net Income for FY 2019
- MASTERCARD Annual Net Profit for 2019-DEC ending is 8.12 Billion USD.
- MASTERCARD market value as on OCT-28-2020 is 296 Billion USD.
Technology wise, popularity wise and wide usage perspective, PayPal is of high standard.
Considering the above factors, we are considering Ant Group IPO is over priced as Ant Group market value is kept at approximately 310 Billion USD.
Actually now a days for each country 3 to 5 famous apps are there.
Here is the list of World Top Digital Payment Solution Companies.
Considering all the above factors, we feel 310 Billion USD market value for Ant Group IPO is over priced.
Keeping market value at 310 Billion USD, Ant Group planning to raise 34.5 Billion USD.
Relatively over priced considering its revenues and net profits and considering market value of similar companies.
Considering above factors, we feel it is better to invest in MasterCard when compared with Ant Group for long term purpose.
Again do your own mathematics before investing either in MasterCard or PayPal or Ant Group.
Just do not go by messages floating over media.
Again one more factor which is important to consider is China has huge debt when compared with China GDP. While considering China debt, consider China government debt and also debt of private companies.
If any country has huge debts when compared with GDP, then in near time corporate taxes or tax burden on companies will increase.
Even USA is also sitting on huge debt. But GDP numbers of USA are relatively high.
We prefer MasterCard when compared with Ant Group for long term investor.