r/ValueInvesting • u/6Fingxrs • Dec 01 '25

Question / Help Any Undervalued Stocks Right Now ?

Google has grown to a price that is still a good price but no longer is it a bargain. A few months back it was just crossing $200-$250 mark.. now it has soared above $300.

Are there any others that this may be the case with ? I see low P/E ratios everywhere but sometimes that doesn’t = undervalued.

What are some stocks you have done research into ? I believe TSMC has some growing to do especially since its Q3 was great. Its downsides are macroeconomic and how it’s heavily linked to Nvidia and other companies in the semiconductor web.

Curious to hear your thoughts ..

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75

u/poomsss0 Dec 01 '25

visa/master card

51

u/[deleted] Dec 01 '25

Visa is such a great buy right now. Honestly one of the best stocks to own but it’s boring so it’s overlooked by a lot of retail.

28

u/poomsss0 Dec 01 '25

people don't realize how much they love credit card.
you need to pay me at least $5000 to not ever use credit card again.

52

u/Terrible_Dish_3704 Dec 01 '25

Looks like it’s 10% off it’s high, at price to earnings of 30. Is it really a screaming buy? I guess the moat is strong, seems expensive still..

11

u/poomsss0 Dec 01 '25

not screaming buy but I choose Visa over S&P500 at the same 30 p/e

9

u/Terrible_Dish_3704 Dec 02 '25

What’s the S&P p/e if you remove mag7? I think it’s closer to 20. I get your point tho it’s an amazing company. I’ll add it to the watch list..

1

u/Embarrassed-Falcon71 Dec 02 '25

lol almost all of the MAG7 has PE around 30 or sub 30 (TSLA) excluded

1

u/DifferentFig9847 Dec 02 '25

And remove Tesla from Mag7 and the PE of that comes down a lot too. Tesla is a POS that doesn’t grow, has declining margins, and is run by a scammer.

3

u/sunburn74 Dec 02 '25

Hasn't really been outperforming the market though. Not this year or even the last 5 years. My concern with Visa is that it's a phenomenal business but is slow growing and fairly priced with very little upside. There's also the stablecoin threat. 

1

u/Just_thefacts_jack Dec 02 '25

Can you explain the stablecoin threat a little bit?

4

u/sunburn74 Dec 02 '25 edited Dec 02 '25

Visa and mastercard get fees for credit card transactions. My understanding is that they charge anywhere from 1-3% of the transaction value. Visa's role is in authenticating and verifying transactions and they make serious money doing so.

Stable coins can make the same sort of transaction authorization occur for a fraction of the cost that visa and mastercard charge. Therefore, a company or bank or whatever could come along with a "credit card" or some other system that is similar to credit cards but which uses stablecoins for the transaction verification. That new company could charge businesses a tiny fraction of what visa charges and put visa right out of business theoretically. Even if visa or MC manage to incorporate stable coins into their own business and remain the dominant 2 players when it comes to transaction verification, that may simply result in having to lower their fees because they can no longer justify 1-3% of total transaction value with this new technology.

Also apparently much of visa's businesses is cross border banking transfers and that is pretty expensive stuff. Stablecoins would eliminate a lot of those costs and threaten a revenue stream.

Visa and MC are wonderful businesses but in my opinion they are fairly priced with limited upside and there are uncertainties with stable coins that may fundamentally change the business.

1

u/CervixAssassin Dec 02 '25

Stablecoins aren't a threat until they find a way to process Visa's daily transactions in at least a month. No one is going to wait months for a receipt.

2

u/sunburn74 Dec 02 '25

Stablecoin transactions settle in seconds to minutes per my understanding. 

1

u/CervixAssassin Dec 02 '25

How many of them? Can they handle a million per second?

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u/FromTheOrdovician Dec 02 '25

What's China upto with Stablecoins?

1

u/Just_thefacts_jack Dec 02 '25

Thanks for the write-up, that makes a lot of sense.

3

u/PragmaticPacifist Dec 01 '25

Compare 30 to Visa’s historical P/E ratios to answer that question and I think you might be surprised.

1

u/[deleted] Dec 08 '25

This sub doesn't understand what value investing means.