Visa Stock Valuation

V
 Stock
  

USD 199.18  2.29  1.16%   

What is the acquisition price tag of Visa Inc? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Visa, is its stock price multiplied by the total number of shares outstanding, calculating Visa's enterprise value requires a different approach. It uses Visa's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to climb to about 4.9 B in 2022, whereas Enterprise Value is likely to drop slightly above 134.3 B in 2022.
Visa Inc has a current Real Value of $236.74 per share. The regular price of the company is $199.18. At this time, the company appears to be undervalued. Our model measures the value of Visa Inc from inspecting the company fundamentals such as Return On Equity of 37.36 %, shares outstanding of 1.65 B, and Operating Margin of 67.59 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
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Visa Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Visa's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Visa Most Recent Valuation Data

Price Book
13.05
Price Sales
15.67
Forward Annual Dividend Yield
0.0079
EBITDA
19 B
Dividend Share
1.45
Ex Dividend Date
2022-05-12
Beta
0.9
Undervalued
Today 199.18
Please note that Visa's price fluctuation is very steady at this time. Calculation of the real value of Visa Inc is based on 3 months time horizon. Increasing Visa's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Visa Inc is useful when determining the fair value of the Visa stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Visa. Since Visa is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Visa Stock. However, Visa's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
178.90
Downside
236.74
Real Value
239.06
Upside
Estimating the potential upside or downside of Visa Inc helps investors to forecast how Visa stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Visa more accurately as focusing exclusively on Visa's fundamentals will not take into account other important factors:
Earnings
Estimates (15)
LowProjected EPSHigh
6.857.027.24
Details
Hype
Prediction
LowEstimated ValueHigh
197.06199.38201.70
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.520.530.53
Details
23 Analysts
Consensus
LowTarget PriceHigh
220.00270.26309.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Visa's intrinsic value based on its ongoing forecasts of Visa's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Visa's closest peers. When choosing an evaluation method for Visa Inc, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Visa Investments

7.04 Billion

Share

Visa Valuation Drivers Correlation

Many accounts on the financial statements of Visa Inc are highly interrelated and sometimes correlated. Consequently, when conducting Visa's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Visa
Click cells to compare fundamentals

Visa Valuation Trend

Knowing Visa's actual value is paramount for traders to make sound investment determinations. Visa's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Visa's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Visa's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Visa Market Cap

Visa Inc is rated first in market capitalization category among related companies. Market capitalization of Credit Services industry is at this time estimated at about 3.63 Trillion. Visa retains roughly 436.17 Billion in market capitalization claiming about 12% of stocks in Credit Services industry.
Capitalization  Valuation  Workforce  Revenue  Total debt

Visa Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Visa's current stock value. Our valuation model uses many indicators to compare Visa value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Visa competition to find correlations between indicators driving Visa's intrinsic value. More Info.
Visa Inc is rated first in five year return category among related companies. It is rated first in beta category among related companies totaling about  1.53  of Beta per Five Year Return. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Visa by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Visa's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Visa's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Visa's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Visa and how it compares across the competition.

About Visa Valuation

The equity valuation mechanism determines the current worth of Visa Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Visa Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Visa Inc based exclusively on its fundamental and basic technical indicators. By analyzing Visa's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Visa's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Visa. We calculate exposure to Visa's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Visa's related companies.
Last ReportedProjected for 2022
Gross Profit11.6 B12.5 B
Profit Margin 45.97  41.99 
Visa Inc. operates as a payments technology company worldwide. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California. Visa operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 21500 people.
Visa's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Visa's value is low or high relative to the company's performance and growth projections. Determining the market value of Visa can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Visa represents a small ownership stake in the entity. As a stockholder of Visa, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Visa Dividends Analysis For Valuation

Dividends per Basic Common Share is likely to climb to 0.54 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (1.6 B) in 2022. . Visa Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. Visa reported Accumulated Retained Earnings Deficit of 9.42 Billion in 2021. Earning Before Interest and Taxes EBIT is likely to climb to about 8.2 B in 2022, whereas Price to Earnings Ratio are likely to drop 37.70 in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-1.6 B-1.6 B
Dividend Yield 0.0063  0.005982 
Dividends per Basic Common Share 0.50  0.54 
There are various types of dividends Visa can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Visa shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Visa Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Visa pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Visa by the value of the dividends paid out.

Visa Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Visa does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.93
Earnings Quarterly Growth20.50%
Revenue Growth25.50%
Payout Ratio21.82%
Enterprise Value To Ebitda23.90
Earnings Growth23.40%
Enterprise Value To Revenue16.87

Visa Current Valuation Indicators

Valuation refers to the process of determining the present value of Visa Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Visa we look at many different elements of the entity such as Visa's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Visa's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Visa's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Visa, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Visa's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Visa's worth.
Also, please take a look at World Market Map. Note that the Visa Inc information on this page should be used as a complementary analysis to other Visa's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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When running Visa Inc price analysis, check to measure Visa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visa is operating at the current time. Most of Visa's value examination focuses on studying past and present price action to predict the probability of Visa's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Visa's price. Additionally, you may evaluate how the addition of Visa to your portfolios can decrease your overall portfolio volatility.
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Is Visa's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Visa. If investors know Visa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Visa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.23
Market Capitalization
422.2 B
Quarterly Revenue Growth YOY
0.26
Return On Assets
0.14
Return On Equity
0.37
The market value of Visa Inc is measured differently than its book value, which is the value of Visa that is recorded on the company's balance sheet. Investors also form their own opinion of Visa's value that differs from its market value or its book value, called intrinsic value, which is Visa's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Visa's market value can be influenced by many factors that don't directly affect Visa's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Visa's value and its price as these two are different measures arrived at by different means. Investors typically determine Visa value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Visa's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.