Latest news with #financialdata
Forbes
9 hours ago
- Business
- Forbes
Trump Administration Will Rewrite Rule On Access To Consumer Financial Data
Russell Vought, the acting head of the CFPB, has shifted course on the open banking rule. Instead of killing it, he wants to rewrite it.A federal judge on Tuesday granted a last minute motion by the Consumer Financial Protection Bureau (CFPB) to stay the court battle over the legality of the agency's 'open banking' rule, while it rewrites it in a way that 'aligns with the policy preferences of the new leadership.' The regulations, designed to give consumers greater control over their own financial data, were finalized last October under the Biden Administration, and scheduled to take effect on a staggered basis next year. The Biden-era rule allows customers to access and share financial information connected to their bank accounts, credit cards, payment apps and mobile wallets with authorized third parties (for example, fintechs) without a fee. After the rule was issued, The Bank Policy Institute, the Kentucky Bankers Association and Forcht Bank, immediately sued to block it in the U.S. District Court for the Eastern District of Kentucky. On May 30th, the CFPB, now run by Office of Management and Budget Director Russell Vought, a deregulation hawk, filed a motion urging that the rule be declared illegal under the Administrative Procedure Act. Its filing argued that the rule exceeded the agency's authority under Section 1033 of the 2010 Dodd Franks Act, because that section granted consumers–not third parties like fintechs–a right to their financial data. Meanwhile, the Financial Technology Association (FTA), a DC-based trade group, was granted the right to intervene in the litigation to defend the rule. But yesterday, when the CFPB was due to respond to the FTA's motion for summary judgment in support of the rule, it instead asked for a stay while it rewrites the rule. The CFPB's decision to revisit open banking is a clear shift from its May position. Notably, the banking groups the CFPB previously sided with, opposed the stay motion. Meanwhile, the FTA expressed its support in a public statement and pledged to work alongside the agency in the rulemaking process. In a court filing, it added that it reserved its right to object to any delay in compliance deadlines. Recent developments have turned up the already high heat on the issue. Earlier this month, JPMorgan Chase, the nation's largest bank, shocked the fintech industry by sending out notices that it intends to introduce steep fees for sharing consumer data–so steep that they could make a life-or-death difference for some fintechs. Last week, lobbying groups representing fintechs, restaurants, retailers and the crypto industry President Trump has embraced (and profited from), sent a joint letter to him asking his administration to take a position in the court case affirming 'that customers, not big banks, control their financial data.' In the letter, they urged him to help safeguard Americans' 'access to the future of finance' and positioned open banking as an extension of his America-First agenda – and the key to ensuring that the U.S. remains a global financial leader. Many of America's largest banks, who view the open banking regulations as a threat to their business, are fighting hard to retain their market dominance and ward off emerging competition by fintech firms. Fintech companies worry that an industrywide shift led by banks towards tighter control over financial data, in the absence of regulatory clarity, could hurt their businesses and stifle innovation within the sector.
Bloomberg
9 hours ago
- Business
- Bloomberg
JPMorgan Reopens Fight With Fintechs, Crypto Over Fees for Customer Data
In late 2024, US regulators put an end to a longstanding fight between banks and technology companies over control of their customers' financial data: Customers have the right to demand, download and transfer their data, for free, per the Consumer Financial Protection Bureau's landmark open banking rule. Less than 10 months later, policymakers say they're going back to the drawing board, the country's biggest bank is planning to charge for access to customers' data, and executives at some of the biggest financial technology companies, crypto firms and retailers are furious.
Yahoo
2 days ago
- Business
- Yahoo
Is There Now An Opportunity In Jumbo Interactive Limited (ASX:JIN)?
Jumbo Interactive Limited (ASX:JIN), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the ASX over the last few months, increasing to AU$10.42 at one point, and dropping to the lows of AU$9.45. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Jumbo Interactive's current trading price of AU$10.33 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Jumbo Interactive's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. What Is Jumbo Interactive Worth? Great news for investors – Jumbo Interactive is still trading at a fairly cheap price according to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. we find that Jumbo Interactive's ratio of 15.69x is below its peer average of 33.11x, which indicates the stock is trading at a lower price compared to the Hospitality industry. Another thing to keep in mind is that Jumbo Interactive's share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its industry peers, a low beta could suggest it is not likely to reach that level anytime soon, and once it's there, it may be hard to fall back down into an attractive buying range again. See our latest analysis for Jumbo Interactive Can we expect growth from Jumbo Interactive? Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by 28% over the next couple of years, the future seems bright for Jumbo Interactive. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? Since JIN is currently below the industry PE ratio, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple. Are you a potential investor? If you've been keeping an eye on JIN for a while, now might be the time to enter the stock. Its prosperous future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy JIN. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision. If you want to dive deeper into Jumbo Interactive, you'd also look into what risks it is currently facing. Case in point: We've spotted 1 warning sign for Jumbo Interactive you should be aware of. If you are no longer interested in Jumbo Interactive, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Is Amgen Inc. (NASDAQ:AMGN) Trading At A 50% Discount?
Key Insights Amgen's estimated fair value is US$609 based on 2 Stage Free Cash Flow to Equity Amgen is estimated to be 50% undervalued based on current share price of US$307 The US$313 analyst price target for AMGN is 49% less than our estimate of fair value How far off is Amgen Inc. (NASDAQ:AMGN) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Step By Step Through The Calculation We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF ($, Millions) US$14.6b US$13.9b US$13.8b US$14.5b US$14.6b US$14.7b US$15.0b US$15.3b US$15.7b US$16.1b Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Analyst x3 Est @ 0.67% Est @ 1.35% Est @ 1.83% Est @ 2.16% Est @ 2.39% Est @ 2.56% Present Value ($, Millions) Discounted @ 6.8% US$13.7k US$12.2k US$11.4k US$11.1k US$10.5k US$9.9k US$9.5k US$9.1k US$8.7k US$8.3k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$104b The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 6.8%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = US$16b× (1 + 2.9%) ÷ (6.8%– 2.9%) = US$430b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$430b÷ ( 1 + 6.8%)10= US$223b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$327b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of US$307, the company appears quite undervalued at a 50% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Important Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Amgen as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.8%, which is based on a levered beta of 0.890. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Amgen SWOT Analysis for Amgen Strength Earnings growth over the past year exceeded the industry. Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Biotechs market. Opportunity Annual earnings are forecast to grow for the next 3 years. Good value based on P/E ratio and estimated fair value. Threat Annual earnings are forecast to grow slower than the American market. Next Steps: Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Can we work out why the company is trading at a discount to intrinsic value? For Amgen, there are three fundamental elements you should explore: Risks: For instance, we've identified 1 warning sign for Amgen that you should be aware of. Future Earnings: How does AMGN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the NASDAQGS every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
At US$227, Is It Time To Put Lowe's Companies, Inc. (NYSE:LOW) On Your Watch List?
Lowe's Companies, Inc. (NYSE:LOW) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$234 at one point, and dropping to the lows of US$211. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Lowe's Companies' current trading price of US$227 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Lowe's Companies's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. What Is Lowe's Companies Worth? The stock seems fairly valued at the moment according to our valuation model. It's trading around 17% below our intrinsic value, which means if you buy Lowe's Companies today, you'd be paying a reasonable price for it. And if you believe that the stock is really worth $273.78, then there's not much of an upside to gain from mispricing. What's more, Lowe's Companies's share price may be more stable over time (relative to the market), as indicated by its low beta. Check out our latest analysis for Lowe's Companies What kind of growth will Lowe's Companies generate? Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to grow by a double-digit 18% over the next couple of years, the outlook is positive for Lowe's Companies. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. What This Means For You Are you a shareholder? It seems like the market has already priced in LOW's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value? Are you a potential investor? If you've been keeping tabs on LOW, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 2 warning signs for Lowe's Companies (of which 1 makes us a bit uncomfortable!) you should know about. If you are no longer interested in Lowe's Companies, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
