We all know the company, many of us have their cards in our wallet. Very stable business in a sector that really only has a handful of competitors (MA, AXP, DFS). Absolutely mind-blowing net margin of 53%. Balance sheet is a thing of beauty with 22 billion in cash and 28 billion in long term debt. Company assumes no credit risk since they are only involved with the transaction not credit. Consistently buying back 2-3% of shares annually and double digit dividend growth. EPS growth of low double digits going forward. Question is, does 29x trailing make sense even after today's large drop?
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