Visa Valuation

Is VCL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of VCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VCL (CLP303300) is trading below our estimate of fair value (CLP304057.25)

Significantly Below Fair Value: VCL is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for VCL?

Key metric: As VCL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for VCL. This is calculated by dividing VCL's market cap by their current earnings.
What is VCL's PE Ratio?
PE Ratio31.4x
EarningsUS$19.46b
Market CapUS$606.81b

Price to Earnings Ratio vs Peers

How does VCL's PE Ratio compare to its peers?

The above table shows the PE ratio for VCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.7x
MA Mastercard
38.9x12.2%US$479.0b
FI Fiserv
39.5x18.7%US$120.0b
PYPL PayPal Holdings
19.2x6.3%US$86.0b
SQ Block
53.4x27.8%US$52.3b
VCL Visa
31.4x9.8%CL$606.8b

Price-To-Earnings vs Peers: VCL is good value based on its Price-To-Earnings Ratio (31.4x) compared to the peer average (37.7x).


Price to Earnings Ratio vs Industry

How does VCL's PE Ratio compare vs other companies in the South American Diversified Financial Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
VCL 31.4xIndustry Avg. 8.6xNo. of Companies5PE0816243240+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: VCL is expensive based on its Price-To-Earnings Ratio (31.4x) compared to the South American Diversified Financial industry average (8.6x).


Price to Earnings Ratio vs Fair Ratio

What is VCL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VCL's Price-To-Earnings Fair Ratio for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst VCL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCL$303,300.00
CL$313,328.98
+3.3%
5.9%CL$342,975.50CL$266,540.96n/a35
Nov ’25CL$269,400.00
CL$305,660.13
+13.5%
6.7%CL$336,280.00CL$254,612.00n/a35
Oct ’25CL$246,450.00
CL$275,357.18
+11.7%
6.2%CL$295,125.06CL$225,375.41n/a35
Sep ’25CL$252,501.00
CL$276,717.05
+9.6%
7.1%CL$301,097.17CL$229,020.00n/a34
Aug ’25CL$243,922.00
CL$287,972.83
+18.1%
7.1%CL$314,235.90CL$238,057.50n/a34
Jul ’25CL$251,300.00
CL$290,127.76
+15.5%
5.7%CL$315,439.35CL$249,526.65n/a34
Jun ’25CL$277,442.00
CL$273,685.18
-1.4%
6.0%CL$297,647.50CL$231,010.00n/a34
May ’25CL$277,442.00
CL$292,938.35
+5.6%
6.6%CL$320,873.05CL$249,035.80n/a35
Apr ’25CL$277,442.00
CL$295,250.97
+6.4%
6.1%CL$328,256.45CL$254,766.20n/a34
Mar ’25CL$265,457.00
CL$290,091.54
+9.3%
5.7%CL$316,203.70CL$252,187.00n/a35
Feb ’25CL$209,530.00
CL$276,326.03
+31.9%
6.5%CL$303,858.08CL$242,340.80n/a35
Jan ’25CL$209,530.00
CL$251,481.72
+20.0%
7.4%CL$289,656.25CL$196,075.00n/a35
Dec ’24CL$209,530.00
CL$240,630.05
+14.8%
6.7%CL$283,058.75CL$191,609.00n/a35
Nov ’24CL$209,530.00
CL$250,021.04
+19.3%
6.9%CL$294,898.50CL$199,623.60CL$269,400.0035
Oct ’24CL$209,530.00
CL$247,018.90
+17.9%
7.9%CL$299,083.68CL$195,828.60CL$246,450.0033
Sep ’24CL$209,530.00
CL$241,079.31
+15.1%
7.5%CL$292,279.68CL$191,373.60CL$252,501.0034
Aug ’24CL$185,204.00
CL$228,809.28
+23.5%
10.1%CL$281,853.60CL$138,410.25CL$243,922.0035
Jul ’24CL$185,204.00
CL$213,409.15
+15.2%
5.8%CL$240,135.00CL$176,099.00CL$251,300.0034
Jun ’24CL$178,750.00
CL$215,158.64
+20.4%
5.9%CL$241,677.00CL$177,229.80CL$277,442.0034
May ’24CL$178,750.00
CL$213,575.19
+19.5%
9.4%CL$241,950.00CL$116,942.50CL$277,442.0034
Apr ’24CL$178,750.00
CL$206,118.19
+15.3%
9.4%CL$232,390.02CL$115,005.30CL$277,442.0034
Mar ’24CL$178,750.00
CL$206,118.19
+15.3%
9.4%CL$232,390.02CL$115,005.30CL$265,457.0034
Feb ’24CL$178,750.00
CL$209,139.88
+17.0%
9.7%CL$236,597.50CL$117,087.50CL$209,530.0034
Jan ’24CL$189,900.00
CL$215,191.79
+13.3%
10.6%CL$252,459.50CL$126,229.75CL$209,530.0032
Dec ’23CL$189,900.00
CL$221,320.99
+16.5%
10.5%CL$262,313.70CL$131,156.85CL$209,530.0031
Nov ’23CL$189,900.00
CL$234,598.75
+23.5%
7.4%CL$274,325.50CL$198,649.50CL$209,530.0030

Analyst Forecast: Target price is less than 20% higher than the current share price.


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