Visa Inc. (V), Discounted Cash Flow Valuation

Société Visa Inc. (V) Profile

US | Financial Services | Financial - Credit Services | NYSE
320.1 -9.51 (-2.89%)
Real-Time Price (USD)
Market Cap A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
625.34B
Revenue (ttm) The total amount of income generated by the sale of goods or services related to the company's primary operations.
36.8B
Net Income (ttm) The company's earnings for a period net of operating costs, taxes and interest.
19.97B
Shares Out Total number of common shares outstanding as of the latest date disclosed in a financial filing.
2.03B
EPS (ttm) Company's net earnings or losses from continuing operations on a per diluted share basis.
9.83
PE Ratio The price-to-earnings (PE) ratio is the ratio between a company's stock price and earnings per share. It measures the price of a stock relative to its profits.
22.57
Dividend Yield Measures the cash returned to shareholders by a firm as a percentage of the price they pay for each share of stock.
0.95%
Exchange Name of stock exchange where the trading item trades.
NYSE
Avg Volume The average number of shares traded each day over the past 30 days.
7.14M
Open The opening trade price over the trading day.
329
Previous Close The last closing price.
329.61
Beta A ratio that measures the risk or volatility of a company's share price in comparison to the market as a whole.
0.94
1 day delta The range between the high and low prices over the past day.
316.65-329.15
52 weeks The range between the high and low prices over the past 52 weeks.
252.7-366.54

Total Valuation

Visa Inc. has a market cap or net worth of 625.34B. The enterprise value is 633.58B.
Market Cap (ttm) Market Capitalization
A valuation method that multiplies the price of a company's shares by the total number of outstanding shares.
625.34B
Enterprise Value (ttm) Enterprise Value
Enterprise value measures the total value of a company's outstanding shares, adjusted for debt and levels of cash and short-term investments.
Enterprise Value = Market Cap + Total Debt - Cash & Equivalents - Short-Term Investments
633.58B

Valuation Ratios

The trailing PE ratio is 27.71. Visa Inc.'s PEG ratio is 5.04.
PE Ratio (ttm) PE Ratio
The price-to-earnings (P/E) ratio is a valuation metric that shows how expensive a stock is relative to earnings.
PE Ratio = Stock Price / Earnings Per Share
27.71
PS Ratio (ttm) PS Ratio
The price-to-sales (P/S) ratio is a commonly used valuation metric. It shows how expensive a stock is compared to revenue.
PS Ratio = Market Capitalization / Revenue
16.99
PB Ratio (ttm) PB Ratio
The price-to-book (P/B) ratio measures a stock's price relative to book value. Book value is also called Shareholders' equity.
PB Ratio = Market Capitalization / Shareholders' Equity
14.45
P/FCF Ratio (ttm) P/FCF Ratio
The price to free cash flow (P/FCF) ratio is similar to the P/E ratio, except it uses free cash flow instead of accounting earnings.
P/FCF Ratio = Market Capitalization / Free Cash Flow
30.66
PEG Ratio (ttm) PEG Ratio
The price/earnings to growth (PEG) ratio is calculated by dividing a company's PE ratio by its expected earnings growth.
PEG Ratio = PE Ratio / Expected Earnings Growth
5.04

Enterprise Valuation

The stock's EV/EBITDA ratio is 24.58, with a EV/FCF ratio of 31.06.
EV / Sales (ttm) EV / Sales Ratio
The enterprise value to sales (EV/Sales) ratio is similar to the price-to-sales ratio, but the price is adjusted for the company's debt and cash levels.
EV/Sales Ratio = Enterprise Value / Revenue
17.22
EV / EBITDA (ttm) EV / EBIT Ratio
The EV/EBITDA ratio measures a company's valuation relative to its EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization.
EV/EBITDA Ratio = Enterprise Value / EBITDA
24.58
EV / EBIT (ttm) EV/EBIT Ratio
The EV/EBIT is a valuation metric that measures a company's price relative to EBIT, or Earnings Before Interest and Taxes.
EV/EBIT Ratio = Enterprise Value / EBIT
29.15
EV / FCF (ttm) EV/FCF Ratio
The enterprise value to free cash flow (EV/FCF) ratio is similar to the price to free cash flow ratio, except the price is adjusted for the company's cash and debt.
EV/FCF Ratio = Enterprise Value / Free Cash Flow
31.06

Financial Efficiency

Return on equity (ROE) is 50.68% and return on invested capital (ROIC) is 29.68%.
Return on Equity (ROE) (ttm) Return on Equity (ROE)
Return on equity (ROE) is a profitability metric that shows how efficient a company is at using its equity (or "net" assets) to generate profits. It is calculated by dividing the company's net income by the average shareholders' equity over the past 12 months.
ROE = (Net Income / Average Shareholders' Equity) * 100%
50.68%
Return on Assets (ROA) (ttm) Return on Assets (ROA)
Return on assets (ROA) is a metric that measures how much profit a company is able to generate using its assets. It is calculated by dividing net income by the average total assets for the past 12 months.
ROA = (Net Income / Average Total Assets) * 100%
21.74%
Return on Capital (ROIC) (ttm) Return on Capital (ROIC)
Return on invested capital (ROIC) measures how effective a company is at investing its capital in order to increase profits. It is calculated by dividing the EBIT (Earnings Before Interest & Taxes) by the average invested capital in the previous year.
ROIC = (EBIT / Average Invested Capital) * 100%
29.68%
Asset Turnover Asset Turnover
The asset turnover ratio measures the amount of sales relative to a company's assets. It indicates how efficiently the company uses its assets to generate revenue.
Asset Turnover Ratio = Revenue / Average Assets
0.38
Inventory Turnover (ttm) Inventory Turnover
The inventory turnover ratio measures how many times inventory has been sold and replaced during a time period.
Inventory Turnover Ratio = Cost of Revenue / Average Inventory
0

Margins

Trailing 12 months gross margin is 79.89%, with operating and profit margins of 64.87% and 54.27%.
Gross Margin (ttm) Gross Margin
Gross margin is the percentage of revenue left as gross profits, after subtracting cost of goods sold from the revenue.
Gross Margin = (Gross Profit / Revenue) * 100%
79.89%
Operating Margin (ttm) Operating Margin
Operating margin is the percentage of revenue left as operating income, after subtracting cost of revenue and all operating expenses from the revenue.
Operating Margin = (Operating Income / Revenue) * 100%
64.87%
Pretax Margin (ttm) Pretax Margin
Pretax margin is the percentage of revenue left as profits before subtracting taxes.
Pretax Margin = (Pretax Income / Revenue) * 100%
65.41%
Profit Margin (ttm) Profit Margin
Profit margin is the percentage of revenue left as net income, or profits, after subtracting all costs and expenses from the revenue.
Profit Margin = (Net Income / Revenue) * 100%
54.27%
EBITDA Margin (ttm) EBITDA Margin
EBITDA margin is the percentage of revenue left as EBITDA, after subtracting all expenses except interest, taxes, depreciation and amortization from revenue.
EBITDA Margin = (EBITDA / Revenue) * 100%
70.05%

Income Statement

In the last 12 months, Visa Inc. had revenue of 36.8B and earned 19.97B in profits. Earnings per share (EPS) was 9.83.
Revenue (ttm) Revenue
Revenue is the amount of money a company receives from its main business activities, such as sales of products or services. Revenue is also called sales.
36.8B
Gross Profit (ttm) Gross Profit
Gross profit is a company’s profit after subtracting the costs directly linked to making and delivering its products and services.
Gross Profit = Revenue - Cost of Revenue
29.4B
Operating Income (ttm) Operating Income
Operating income is the amount of profit in a company after paying for all the expenses related to its core operations.
Operating Income = Revenue - Cost of Revenue - Operating Expenses
23.88B
Pretax Income (ttm) Pretax Income
Pretax income is a company's profits before accounting for income taxes.
Pretax Income = Net Income + Income Taxes
24.07B
Net Income (ttm) Net Income
Net income is a company's accounting profits after subtracting all costs and expenses from the revenue. It is also called earnings, profits or "the bottom line"
Net Income = Revenue - All Expenses
19.97B
EBITDA (ttm) EBITDA
EBITDA stands for "Earnings Before Interest, Taxes, Depreciation and Amortization." It is a commonly used measure of profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation and Amortization
25.78B
EBIT (ttm) EBIT
EBIT stands for "Earnings Before Interest and Taxes" and is a commonly used measure of earnings or profits. It is similar to operating income.
EBIT = Net Income + Interest + Taxes
24.71B
Earnings Per Share (EPS) (ttm) EPS (Diluted)
Earnings per share is the portion of a company's profit that is allocated to each individual stock. Diluted EPS is calculated by dividing net income by "diluted" shares outstanding.
Diluted EPS = Net Income / Shares Outstanding (Diluted)
9.83

Financial Position

The company has a trailing 12 months (ttm) current ratio of 1.12, with a ttm Debt / Equity ratio of 0.54.
Current Ratio (ttm) Current Ratio
The current ratio is used to measure a company's short-term liquidity. A low number can indicate that a company will have trouble paying its upcoming liabilities.
Current Ratio = Current Assets / Current Liabilities
1.12
Quick Ratio (ttm) Quick Ratio
The quick ratio measure a company's short-term liquidity. A low number indicates that the company may have trouble paying its upcoming financial obligations.
Quick Ratio = (Cash + Short-Term Investments + Accounts Receivable) / Current Liabilities
1.12
Debt / Equity (ttm) Debt / Equity Ratio
The debt-to-equity ratio measures a company's debt levels relative to its shareholders' equity or book value. A high ratio implies that a company has a lot of debt.
Debt / Equity Ratio = Total Debt / Shareholders' Equity
0.54
Debt / EBIT (ttm) Debt / EBIT Ratio
The debt-to-EBIT ratio is a company's debt levels relative to its trailing twelve-month EBIT. A high ratio implies that debt is high relative to the company's earnings.
Debt / EBIT Ratio = Total Debt / EBIT (ttm)
1.01

Dividends & Yields

This stock pays an annual dividend of 2.22, which amounts to a dividend yield of 0.69%.
Dividend Per Share (ttm) Dividend Per Share
Total amount paid to each outstanding share in dividends during the period.
2.22
Dividend Yield (ttm) Dividend Yield
The dividend yield is how much a stock pays in dividends each year, as a percentage of the stock price.
Dividend Yield = (Annual Dividends Per Share / Stock Price) * 100%
0.69%
Earnings Yield (ttm) Earnings Yield
The earnings yield is a valuation metric that measures a company's profits relative to stock price, expressed as a percentage yield. It is the inverse of the P/E ratio.
Earnings Yield = (Earnings Per Share / Stock Price) * 100%
3.61%
FCF Yield (ttm) FCF Yield
The free cash flow (FCF) yield measures a company's free cash flow relative to its price, shown as a percentage. It is the inverse of the P/FCF ratio.
FCF Yield = (Free Cash Flow / Market Cap) * 100%
3.26%
Dividend Growth (YoY) Dividend Growth
The change in dividend payments per share, compared to the previous period.
Dividend Growth = ((Current Dividend / Previous Dividend) - 1) * 100%
12.22%
Payout Ratio (ttm) Payout Ratio
The payout ratio is the percentage of a company's profits that are paid out as dividends. A high ratio implies that the dividend payments may not be sustainable.
Payout Ratio = (Dividends Per Share / Earnings Per Share) * 100%
21.67%

Balance Sheet

The company has 12.37B in cash and 20.61B in debt, giving a net cash position of -8.24B.
Cash & Cash Equivalents Cash & Cash Equivalents
Cash and cash equivalents is the sum of "Cash & Equivalents" and "Short-Term Investments." This is the amount of money that a company has quick access to, assuming that the cash equivalents and short-term investments can be sold at a short notice.
Cash & Cash Equivalents = Cash & Equivalents + Short-Term Investments
12.37B
Total Debt Total Debt
Total debt is the total amount of liabilities categorized as "debt" on the balance sheet. It includes both current and long-term (non-current) debt.
Total Debt = Current Debt + Long-Term Debt
20.61B
Net Cash Net Cash / Debt
Net Cash / Debt is an indicator of the financial position of a company. It is calculated by taking the total amount of cash and cash equivalents and subtracting the total debt.
Net Cash / Debt = Total Cash - Total Debt
-8.24B
Book Value Shareholders' Equity
Shareholders’ equity is also called book value or net worth. It can be seen as the amount of money held by investors inside the company. It is calculated by subtracting all liabilities from all assets.
Shareholders' Equity = Total Assets - Total Liabilities
38.3B
Book Value Per Share (ttm) Book Value Per Share
Book value per share is the total amount of book value attributable to each individual stock. It is calculated by dividing book value (shareholders' equity) by the number of outstanding shares.
Book Value Per Share = Book Value / Shares Outstanding
22.15
Working Capital (ttm) Working Capital
Working capital is the amount of money available to a business to conduct its day-to-day operations. It is calculated by subtracting total current liabilities from total current assets.
Working Capital = Current Assets - Current Liabilities
3.53B

Cash Flow

In the last 12 months, operating cash flow of the company was 21.73B and capital expenditures -1.33B, giving a free cash flow of 20.4B.
Operating Cash Flow (ttm) Operating Cash Flow
Operating cash flow, also called cash flow from operating activities, measures the amount of cash that a company generates from normal business activities. It is the amount of cash left after all cash income has been received, and all cash expenses have been paid.
21.73B
Capital Expenditures (ttm) Capital Expenditures
Capital expenditures are also called payments for property, plants and equipment. It measures cash spent on long-term assets that will be used to run the business, such as manufacturing equipment, real estate and others.
-1.33B
Free Cash Flow (ttm) Free Cash Flow
Free cash flow is the cash remaining after the company spends on everything required to maintain and grow the business. It is calculated by subtracting capital expenditures from operating cash flow.
Free Cash Flow = Operating Cash Flow - Capital Expenditures
20.4B
FCF Per Share (ttm) Free Cash Flow Per Share
Free cash flow per share is the amount of free cash flow attributed to each outstanding stock.
FCF Per Share = Free Cash Flow / Shares Outstanding
11.8

Visa Inc. News

Apr 21, 2025 - seekingalpha.com
The Elephant In The Room - March Dividend Income Report
I've sold some higher-yielding stocks and reduced my portfolio yield in March. The goal was to get closer to my core strategy of investing only in companies with low dividend yields, but high dividend growth potential. While my portfolio yield decreased from 4% to 3.5%, my 5-year CAGR dividend growth rate went from 8% to 11%. Despite much uncertainty, the Canadian stock market has remained relatively strong since the beginning of the year....[read more]
Apr 20, 2025 - fool.com
2 Top Buffett Stocks to Buy and Hold for the Long Haul
Few investors manage to become a household name, but Warren Buffett is one of them. His personal success and the success of his company, Berkshire Hathaway, have put Buffett in a class of his own when it comes to the attention he commands....[read more]
Apr 18, 2025 - fxempire.com
Visa Shares Could Be Opportunity for Long-Term Investors
Forced selling hits shares of Visa, Inc. (V)....[read more]
Apr 18, 2025 - fool.com
Prediction: 5 Surefire Stocks That Can Generate Life-Changing Wealth by 2035
Over the last eight weeks, investors have been taken on quite the ride. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have respectively logged some of their largest single-day nominal point gains and declines in their storied histories....[read more]
Apr 17, 2025 - zacks.com
These 2 Business Services Stocks Could Beat Earnings: Why They Should Be on Your Radar
The Zacks Earnings ESP is a great way to find potential earnings surprises. Why investors should take advantage now....[read more]
Apr 16, 2025 - fool.com
Better Dividend Growth Stock: Costco vs. Visa
When market volatility strikes, dividend stocks serve as financial fortresses for investment portfolios. Hartford Funds research has revealed a striking fact: A remarkable 85% of the S&P 500 cumulative total return since 1960 comes directly from reinvested dividends and compounding power....[read more]
Apr 16, 2025 - fool.com
3 Monster Stocks to Hold for the Next 10 Years
The best way to grow your wealth and better prepare yourself for retirement is to invest your money in promising stocks. Growth stocks are a great bet for the future and can help you increase the value of your portfolio over time....[read more]
Apr 15, 2025 - zacks.com
Will Visa (V) Beat Estimates Again in Its Next Earnings Report?
Visa (V) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report....[read more]
Apr 15, 2025 - zacks.com
Can Visa Keep Delivering Under Tariff Pressure? Time to Buy or Bail?
V is well-positioned for growth, supported by the global shift away from cash toward digital payments....[read more]
Apr 14, 2025 - pymnts.com
Report: Visa to Join Global Dollar Network Stablecoin Consortium
Visa is reportedly joining the Global Dollar Network (USDG) stablecoin consortium. The company will become the first traditional finance player to join the consortium that shares out yield to participants that create connectivity and liquidity, CoinDesk reported Monday (April 14), citing unnamed sources....[read more]

Visa Inc. Details

Country US
City San Francisco
Address PO Box 8999
Ticker Symbol V
Exchange New York Stock Exchange
IPO Date Mar 19, 2008
CEO Mr. Ryan M. McInerney
Sector Financial Services
Industry Financial - Credit Services
Employees 28.8K

Visa Inc. Company Description

Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, platforms, and value-added services. It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands. Visa Inc. has a strategic agreement with Ooredoo to provide an enhanced payment experience for Visa cardholders and Ooredoo customers in Qatar. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.

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