Visa Valuation
| V Stock | USD 276.37 2.05 0.75% |
At this time, the company appears to be overvalued. Visa Class A has a current Real Value of $244.98 per share. The regular price of the company is $276.37. Our model measures the value of Visa Class A from inspecting the company fundamentals such as Operating Margin of 0.67 %, return on equity of 0.49, and Shares Outstanding of 1.67 B as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Visa's valuation include:
Price Book 14.0399 | Enterprise Value 543.2 B | Enterprise Value Ebitda 21.871 | Price Sales 15.287 | Forward PE 24.8756 |
Overvalued
Today
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.
The fair value of the Visa stock is determined by what a typical buyer is willing to pay for full or partial control of Visa Class A. 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 276.37 | Real 244.98 | Target 260.57 | Hype 276.42 | Naive 277.69 |
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.
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: 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.
Visa Cash |
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Visa Valuation Trend
Analysing the historical paterns of Visa's enterprise value and its market capitalization is a good way to estimate and gauge the value of Visa Class A over time and is usually enough for investors to make rational market timing decisions.
Visa Revenue by Product
Visa Total Value Analysis
Visa Class A is at this time anticipated to have enterprise value of 543.17 B with market capitalization of 533.79 B, debt of 20.46 B, and cash on hands of 15.69 B. Please note that enterprise value may be misleading and is a subject to accounting manipulations. We encourage investors to cautiously inspect all of the Visa fundamentals before making security selection decision based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
543.17 B | 533.79 B | 20.46 B | 15.69 B |
Visa Investor Information
About 93.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.53. Visa Class A recorded earning per share (EPS) of 9.34. The entity last dividend was issued on the 9th of August 2024. The firm had 4:1 split on the 19th of March 2015. Based on the key measurements obtained from Visa's financial statements, Visa Class A may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 25.1 B | 23.9 B |
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Visa Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Visa has an asset utilization ratio of 36.08 percent. This indicates that the Company is making $0.36 for each dollar of assets. An increasing asset utilization means that Visa Class A is more efficient with each dollar of assets it utilizes for everyday operations.Visa Ownership Allocation
Visa Class A shows a total of 1.67 Billion outstanding shares. The majority of Visa Class A outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Visa to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Visa Class A. Please pay attention to any change in the institutional holdings of Visa Class A as this could imply that something significant has changed or is about to change at the company. Please note that on August 16, 2024, Representative Kathy Manning of US Congress acquired under $15k worth of Visa Class A's common stock.Visa Profitability Analysis
The company reported the annual revenue of 32.65 B. Net Income to common stockholders was 17.27 B with gross profit before all taxes, overhead, and interest of 31.92 B.Visa Past Distributions to stockholders
About Visa Valuation
Our relative valuation model uses a comparative analysis of Visa. We calculate exposure to Visa's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Visa's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 30 B | 31.5 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 |
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 Reported | Projected for Next Year | ||
| Dividends Paid | 4.3 B | 4.5 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
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 Outstanding | 2.1 B | |
| Quarterly Earnings Growth Y O Y | 0.202 | |
| Forward Price Earnings | 24.8756 |
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.Additional 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.