Visa Inc.

NYSE:V Stock Report

Market Cap: US$611.1b

Visa Valuation

Is V 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 V when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: V ($307.39) is trading below our estimate of fair value ($311.06)

Significantly Below Fair Value: V 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 V?

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

The above table shows the Price to Earnings ratio for V. This is calculated by dividing V's market cap by their current earnings.
What is V's PE Ratio?
PE Ratio31x
EarningsUS$19.46b
Market CapUS$611.14b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for V 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
38.2x12.2%US$476.8b
FI Fiserv
40.5x18.7%US$122.4b
PYPL PayPal Holdings
19.2x6.1%US$84.3b
SQ Block
52.8x27.7%US$57.3b
V Visa
31x9.6%US$611.1b

Price-To-Earnings vs Peers: V is good value based on its Price-To-Earnings Ratio (31x) compared to the peer average (37.7x).

Price to Earnings Ratio vs Industry

How does V's PE Ratio compare vs other companies in the US Diversified Financial Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FOA Finance of America Companies
1.1x-143.9%US$544.53m
SHFS SHF Holdings
2.9xn/aUS$17.18m
PMIR PMI Group
1.2xn/aUS$6.80m
ACGX Alliance Creative Group
2.4xn/aUS$376.68k
No more companies available in this PE range
V 31.0xIndustry Avg. 17.7xNo. of Companies14PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: V is expensive based on its Price-To-Earnings Ratio (31x) compared to the US Diversified Financial industry average (17.7x).

Price to Earnings Ratio vs Fair Ratio

What is V'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.

V PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31x
Fair PE Ratio27.1x

Price-To-Earnings vs Fair Ratio: V is expensive based on its Price-To-Earnings Ratio (31x) compared to the estimated Fair Price-To-Earnings Ratio (27.1x).

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 V forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$307.39
US$321.03
+4.4%
6.2%US$350.00US$272.00n/a35
Nov ’25US$290.74
US$318.13
+9.4%
6.7%US$350.00US$265.00n/a35
Oct ’25US$277.60
US$306.66
+10.5%
6.2%US$328.68US$251.00n/a35
Sep ’25US$276.37
US$302.07
+9.3%
7.1%US$328.68US$250.00n/a34
Aug ’25US$265.93
US$302.42
+13.7%
7.1%US$330.00US$250.00n/a34
Jul ’25US$263.24
US$308.12
+17.0%
5.7%US$335.00US$265.00n/a34
Jun ’25US$272.46
US$308.03
+13.1%
6.0%US$335.00US$260.00n/a34
May ’25US$267.32
US$305.84
+14.4%
6.6%US$335.00US$260.00n/a35
Apr ’25US$278.28
US$301.32
+8.3%
6.1%US$335.00US$260.00n/a34
Mar ’25US$283.16
US$299.08
+5.6%
5.7%US$326.00US$260.00n/a35
Feb ’25US$277.05
US$296.46
+7.0%
6.5%US$326.00US$260.00n/a35
Jan ’25US$260.35
US$282.17
+8.4%
7.4%US$325.00US$220.00n/a35
Dec ’24US$256.45
US$276.28
+7.7%
6.7%US$325.00US$220.00n/a35
Nov ’24US$238.58
US$275.54
+15.5%
6.9%US$325.00US$220.00US$290.7435
Oct ’24US$230.01
US$277.51
+20.7%
7.9%US$336.00US$220.00US$277.6033
Sep ’24US$248.11
US$277.14
+11.7%
7.5%US$336.00US$220.00US$276.3734
Aug ’24US$239.78
US$272.77
+13.8%
10.1%US$336.00US$165.00US$265.9335
Jul ’24US$237.48
US$266.61
+12.3%
5.8%US$300.00US$220.00US$263.2434
Jun ’24US$226.50
US$267.08
+17.9%
5.9%US$300.00US$220.00US$272.4634
May ’24US$232.51
US$264.82
+13.9%
9.4%US$300.00US$145.00US$267.3234
Apr ’24US$225.46
US$259.88
+15.3%
9.4%US$293.00US$145.00US$278.2834
Mar ’24US$218.36
US$259.88
+19.0%
9.4%US$293.00US$145.00US$283.1634
Feb ’24US$230.90
US$259.00
+12.2%
9.7%US$293.00US$145.00US$277.0534
Jan ’24US$207.76
US$247.19
+19.0%
10.6%US$290.00US$145.00US$260.3532
Dec ’23US$217.00
US$244.68
+12.8%
10.5%US$290.00US$145.00US$256.4531
Nov ’23US$206.93
US$248.00
+19.8%
7.4%US$290.00US$210.00US$238.5830

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

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