- July 23, 2021
- Posted by: Stratford Team
- Category: Business
U.S. Bancorp (NYSE:USB) has long been one of the top-performing regional banks. Just ask legendary investor Warren Buffett, whose company, Berkshire Hathaway, has maintained a large position in the stock even as it’s sold numerous other banks during the COVID-19 pandemic. Buffett is not alone. For its consistently strong performance, investors have rewarded U.S. Bancorp with a high valuation — at recent prices, the stock was trading just under its average of 2.5 times tangible book value (equity minus intangible assets and goodwill).
A big reason for this valuation is the bank’s unique payments system. I think the payments business not only helps support the high valuation, but it also may be able to drive it higher. Here’s why.
Understanding the payments business
U.S. Bancorp is unique in that it can offer a wide range of payments services to consumers, merchants, corporations, small and medium-sized…
