We’ve recently updated our valuation analysis.

Visa Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

V key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.8x
Enterprise Value/EBITDA21.2x
PEG Ratio2.7x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.9x
MA Mastercard
35.8x13.6%US$345.9b
FISV Fiserv
28.6x11.5%US$69.7b
PYPL PayPal Holdings
25.6x15.2%US$69.2b
FLT FLEETCOR Technologies
17.6x12.7%US$16.7b
V Visa
29.3x10.9%US$452.9b

Price-To-Earnings vs Peers: V is expensive based on its Price-To-Earnings Ratio (29.3x) compared to the peer average (26.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: V is expensive based on its Price-To-Earnings Ratio (29.3x) compared to the US Diversified Financial industry average (10.5x)


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 Ratio29.3x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: V is expensive based on its Price-To-Earnings Ratio (29.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).


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 ($221.03) is trading above our estimate of fair value ($184.95)

Significantly Below Fair Value: V is trading above our estimate of fair value.


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$221.03
US$267.08
+20.8%
5.9%US$300.00US$220.00n/a34
May ’24US$232.51
US$264.82
+13.9%
9.4%US$300.00US$145.00n/a34
Apr ’24US$225.46
US$259.88
+15.3%
9.4%US$293.00US$145.00n/a34
Mar ’24US$218.36
US$259.88
+19.0%
9.4%US$293.00US$145.00n/a34
Feb ’24US$230.90
US$259.00
+12.2%
9.7%US$293.00US$145.00n/a34
Jan ’24US$207.76
US$247.19
+19.0%
10.6%US$290.00US$145.00n/a32
Dec ’23US$217.00
US$244.68
+12.8%
10.5%US$290.00US$145.00n/a31
Nov ’23US$206.93
US$248.00
+19.8%
7.4%US$290.00US$210.00n/a30
Oct ’23US$177.65
US$257.19
+44.8%
7.5%US$296.00US$220.00n/a31
Sep ’23US$200.13
US$258.48
+29.2%
7.5%US$296.00US$220.00n/a31
Aug ’23US$211.36
US$256.19
+21.2%
8.2%US$296.00US$204.00n/a32
Jul ’23US$199.18
US$263.12
+32.1%
7.9%US$292.00US$215.00n/a33
Jun ’23US$209.93
US$265.30
+26.4%
8.1%US$310.00US$221.00US$221.0333
May ’23US$213.13
US$267.32
+25.4%
7.4%US$310.00US$221.00US$232.5132
Apr ’23US$226.36
US$271.82
+20.1%
7.1%US$312.00US$221.00US$225.4632
Mar ’23US$208.97
US$270.25
+29.3%
7.9%US$312.00US$215.00US$218.3633
Feb ’23US$232.36
US$267.72
+15.2%
8.6%US$312.00US$210.00US$230.9033
Jan ’23US$216.71
US$272.18
+25.6%
6.6%US$308.00US$221.00US$207.7632
Dec ’22US$190.16
US$273.91
+44.0%
6.5%US$308.00US$217.00US$217.0032
Nov ’22US$212.46
US$274.69
+29.3%
5.9%US$308.00US$217.00US$206.9332
Oct ’22US$230.46
US$278.82
+21.0%
5.9%US$309.00US$215.00US$177.6532
Sep ’22US$230.12
US$279.46
+21.4%
5.9%US$309.00US$215.00US$200.1333
Aug ’22US$246.39
US$278.30
+13.0%
6.4%US$309.00US$208.00US$211.3633
Jul ’22US$235.15
US$264.71
+12.6%
6.6%US$297.00US$194.00US$199.1835
Jun ’22US$226.63
US$262.80
+16.0%
6.9%US$297.00US$194.00US$209.9334

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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