Capital One Financial, the credit cards and automobile loans bank specialist is undervalued, according to Wolfteam Ltd.'s corporate view.
Capital One Financial's intrinsic worth is 93 billion USD in the long run.
Giving out credits, lending to credit card holders is a relatively high-risk banking business. But also high net profit margin business. Lending for automobile purchases stands also up on the banking risk ladder, below credit cards loans, however.
That said, both credit card lending and automobile purchases crediting are high profit margin business. That is, Capital One Financial's credit card and automobile lending two main business lines are very profitable and hence Capital One Financial regularly reports above 25 % net profit margin, both on quarterly and yearly basis.
Both on the future profit and business growth projections, Wolfteam Ltd.'s corporate view is that Capital One Financial is worth 93 billion USD, more than twice Capital One Financial's current market capitalization of circa 40 billion USD.
High-profit margin banking business are generally undervalued, even in the current almost crisis times.
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