Visa Valuation

V Stock  USD 271.35  0.07  0.03%   
At this time, the company appears to be fairly valued. Visa Class A has a current Real Value of $267.86 per share. The regular price of the company is $271.35. Our model measures the value of Visa Class A from inspecting the company fundamentals such as Operating Margin of 0.69 %, return on equity of 0.47, and Shares Outstanding of 1.58 B as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Visa's valuation include:
Price Book
Enterprise Value
548.5 B
Enterprise Value Ebitda
Price Sales
Forward PE
Fairly Valued
Please note that Visa's price fluctuation is very steady at this time. Calculation of the real value of Visa Class A 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 Class A 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.
Historical Market  271.35 Real  267.86 Target  260.57 Hype  271.4
The real value of Visa Stock, also known as its intrinsic value, is the underlying worth of Visa Class A Company, which is reflected in its stock price. It is based on Visa's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Visa's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Visa's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Real Value
Estimating the potential upside or downside of Visa Class A 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:
Estimates (0)
38 Analysts
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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 Class A, 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

(1.72 Billion)

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 Class A is rated first in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 856.55 Billion. Visa totals roughly 557.23 Billion in market capitalization claiming about 65% of equities under Financials industry.
Capitalization  Total debt  Revenue  Workforce  Valuation

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 Class A is rated second in price to earning category among related companies. It is rated first in price to book category among related companies fabricating about  0.32  of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Visa Class A is roughly  3.14 . Price To Book Ratio is likely to climb to 11.49 in 2024. 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 stock valuation mechanism determines the current worth of Visa Class A on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Visa Class A. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Visa Class A 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 Next Year
Gross Profit30 B31.5 B
Pretax Profit Margin 0.58  0.34 
Operating Profit Margin 0.58  0.33 
Net Profit Margin 0.48  0.24 
Gross Profit Margin 0.72  0.63 

8 Steps to conduct Visa's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Visa's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Visa's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Visa's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Visa's revenue streams: Identify Visa's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Visa's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Visa's growth potential: Evaluate Visa's management, business model, and growth potential.
  • Determine Visa's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Visa's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
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

At this time, Visa's Dividends Paid is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to climb to 14.32 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024. . At this time, Visa's Retained Earnings are fairly stable compared to the past year. Price Earnings Ratio is likely to climb to 35.35 in 2024, whereas Retained Earnings Total Equity is likely to drop slightly above 11 B in 2024.
Last ReportedProjected for Next Year
Dividends Paid4.3 B4.5 B
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.20  0.15 
Dividend Paid And Capex Coverage Ratio 8.87  14.32 
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 Class A 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 Growth Indicators

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.
Common Stock Shares Outstanding2.1 B
Quarterly Earnings Growth Y O Y0.203
Forward Price Earnings27.7778

Visa Current Valuation Indicators

Valuation refers to the process of determining the present value of Visa Class A 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.
When determining whether Visa Class A is a strong investment it is important to analyze Visa's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Visa's future performance. For an informed investment choice regarding Visa Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Visa Class A. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real.
You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

Complementary Tools for Visa Stock analysis

When running Visa's 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 the 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
Dividend Share
Earnings Share
Revenue Per Share
Quarterly Revenue Growth
The market value of Visa Class A 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 if Visa is a good investment 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.