Visa Inc - Class A
Exchange: NYSESector: Financial ServicesIndustry: Credit Services
Visa Inc. is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.
Did you know?
A mega-cap stock valued at $571B.
Current Price
$308.88
-0.77%GoodMoat Value
$403.52
30.6% undervaluedProfile
Valuation (TTM)
Market Cap$571.14B
P/E27.47
EV$564.41B
P/B15.07
Shares Out1.85B
P/Sales13.80
Revenue$41.39B
EV/EBITDA21.54
Visa Inc - Class A (V) Stock Analysis
GoodMoat Analysis
Visa operates a dominant global payments network, exhibiting a wide and durable moat through network effects, high switching costs, and pricing power. While its business quality is exceptional, its current valuation appears full, trading at a premium to its historical average and offering a modest margin of safety based on the GoodMoat target.
Read full analysis
Visa Inc. operates the world's largest electronic payments network, facilitating transactions between consumers, merchants, and financial institutions. It is a classic 'toll booth' business, earning fees on transaction volume without taking on credit risk. Applying the GoodMoat framework, Visa scores highly on Moat Identification. Its network effects are profound, as more users attract more merchants and vice versa. Switching costs are immense for financial institutions integrated into its global system. The company demonstrates clear pricing power, evidenced by its exceptional 60.0% operating margin and 54.8% return on equity, which far exceeds the 15-20% high-quality threshold. Its balance sheet is strong, with a manageable debt-to-equity ratio of 0.66. This suggests a Moat Score well above the 5+ threshold and a High Quality rating, passing the initial gate for further analysis. On valuation, the stock trades at a P/E of 27.1x, which is above its long-term average, and a Free Cash Flow Yield of 3.8%. The provided GoodMoat target of $403.52 implies a potential upside of approximately 32%, which falls within the 'Favourable' 20-40% margin of safety band in the Decision Framework. However, the current multiple requires confidence in sustained high growth. For a value investor, Visa represents a premier-quality business with a wide moat, but the investment case hinges on whether the current price offers a sufficient discount to its intrinsic value to justify investment.
Market Cap$571.14B
Current Price$308.88
P/E Ratio27.47
Forward P/E—
PEG Ratio1.57
EPS$10.20
Book Value$20.50
P/B Ratio15.07
V Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 10.2% FCF growth (CAGR)
Cash vs Debt
Net Debt: 5.0B
Revenue
23.0B
FY19
21.8B
FY20
24.1B
FY21
29.3B
FY22
32.7B
FY23
35.9B
FY24
40.0B
FY25
Net Income
12.1B
FY19
10.9B
FY20
12.3B
FY21
15.0B
FY22
17.3B
FY23
19.7B
FY24
20.1B
FY25
V 52-Week Range
$295.52
$371.16
50-Day MA: $310.74200-Day MA: $332.76
Did you know?
Pays a 0.81% dividend yield.
Visa Inc - Class A (V) Financial Summary
Visa Inc - Class A (V) is a Financial Services company in the Credit Services industry, listed on NYSE. The stock currently trades at $308.88 with a market capitalization of $571.14B.
Key valuation metrics include a P/E ratio of 27.47, price-to-book ratio of 15.07, and EPS of $10.20. The company reports a profit margin of 50.2% and return on equity of 54.8%.
V Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $571.14B |
| P/E Ratio | 27.47 |
| EPS | $10.20 |
| P/B Ratio | 15.07 |
| P/S Ratio | 13.80 |
| EV/EBITDA | 21.54 |
| Dividend Yield | 0.81% |
| Profit Margin | 50.2% |
| Return on Equity | 54.8% |
| Debt/Equity | 0.66 |
V Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $22.98B | $12.08B |
| FY20 | $21.85B | $10.87B |
| FY21 | $24.11B | $12.31B |
| FY22 | $29.31B | $14.96B |
| FY23 | $32.65B | $17.27B |
| FY24 | $35.93B | $19.74B |
| FY25 | $40.00B | $20.06B |
Visa Inc - Class A (V) Valuation
Based on GoodMoat's DCF model, Visa Inc - Class A has a fair value estimate of $403.52. At the current price of $308.88, the stock appears 23.5% undervalued relative to our intrinsic value estimate.
V Quality Indicators
Visa Inc - Class A maintains a profit margin of 50.2% and an operating margin of 60.0%. Return on equity stands at 54.8%. The current ratio is 1.08. Debt-to-equity ratio is 0.66.
About Visa Inc - Class A
Visa Inc. is the world’s leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. The company’s relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device, for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce.
V Free Cash Flow
Visa Inc - Class A generated $21.58B in trailing twelve-month free cash flow, representing an FCF yield of 3.78%. This moderate FCF yield indicates reasonable cash generation.
V Shares Outstanding
Visa Inc - Class A has 1.85 billion shares outstanding at a share price of $308.88, giving it a market capitalization of $571.14B.
V Recent Insider Trades
Recent insider transactions at Visa Inc - Class A include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| CARNEY LLOYD | SELL | 650 | $201252.87 |
| MCINERNEY RYAN (Chief Executive Officer) | SELL | 10,485 | $3.66M |