Visa
Visa Inc. operates as a payments technology company worldwide. The last earnings update was 80 days ago. More info.
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Value
Is Visa undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Visa
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Visa.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 33 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 10.1% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 3% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 3% |
| Equity Risk Premium | S&P Global | 7.1% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 0.97 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.969 (1 + (1- 21%) (5.34%)) |
1.009 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.01 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.009 * 7.05%) |
10.07% |
Discounted Cash Flow Calculation for NYSE:V using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Visa is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Levered FCF (USD, Millions) | 12,177.58 | 13,525.27 | 14,805.75 | 14,864.67 | 16,415.00 |
| Source | Analyst x12 | Analyst x9 | Analyst x4 | Analyst x3 | Analyst x3 |
|
Present Value Discounted (@ 10.07%) |
11,063.90 | 11,164.52 | 11,103.80 | 10,128.46 | 10,161.93 |
| Present value of next 5 years cash flows | $53,622.60 |
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2023
× (1 + g) ÷ (Discount Rate – g)
= $16,415.00 × (1 + 2.95%) ÷ (10.07% – 2.95%) |
$237,484.31 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)5
= $237,484.31 ÷ (1 + 10.07%)5 |
$147,017.89 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 5 years cash flows +
Terminal Value
= $53,622.60 + $147,017.89 |
$200,640.49 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $200,640.49 / 2,225.11 |
$90.17 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $90.17 |
| Current discount | Discount to share price of
$137.23
= -1 x ($137.23 - $90.17) / $90.17 |
-52.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Visa is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Visa's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Visa's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-06-30) in USD | $4.11 |
| NYSE:V Share Price ** | NYSE (2018-10-15) in USD | $137.23 |
| United States of America IT Industry PE Ratio | Median Figure of 74 Publicly-Listed IT Companies | 26.3x |
| United States of America Market PE Ratio | Median Figure of 2,939 Publicly-Listed Companies | 19.24x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Visa.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:V Share Price ÷ EPS (both in USD) = 137.23 ÷ 4.11 |
33.41x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Visa is overvalued based on earnings compared to the US IT industry average.
- Visa is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Visa's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 33.41x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts |
13.8%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 62 Publicly-Listed IT Companies | 1.98x |
| United States of America Market PEG Ratio | Median Figure of 2,057 Publicly-Listed Companies | 1.29x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 33.41x ÷ 13.8% |
2.41x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Visa is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Visa's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-06-30) in USD | $12.51 |
| NYSE:V Share Price * | NYSE (2018-10-15) in USD | $137.23 |
| United States of America IT Industry PB Ratio | Median Figure of 118 Publicly-Listed IT Companies | 4.14x |
| United States of America Market PB Ratio | Median Figure of 4,938 Publicly-Listed Companies | 1.93x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:V Share Price ÷ Book Value per Share (both in USD) = 137.23 ÷ 12.51 |
10.97x |
* Primary Listing of Visa.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Visa is overvalued based on assets compared to the US IT industry average.
Value checks
We assess Visa's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Visa has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
How is Visa expected to perform in the next 1 to 3 years based on estimates from 33 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Visa's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
- Visa's earnings growth is positive but not above the United States of America market average.
- Visa's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:V Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 33 Analysts | 13.8% |
| NYSE:V Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 33 Analysts | 9.9% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 17.6% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 15.9% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.6% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 33 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | 33,831 | 1 | ||
| 2022-09-30 | 31,484 | 18,315 | 3 | |
| 2021-09-30 | 28,390 | 17,961 | 15,356 | 4 |
| 2020-09-30 | 25,464 | 15,162 | 13,531 | 24 |
| 2019-09-30 | 22,932 | 13,415 | 12,009 | 33 |
| 2018-09-30 | 20,605 | 12,209 | 10,246 | 33 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-06-30 | 20,030 | 11,986 | 9,264 |
| 2018-03-31 | 19,355 | 11,886 | 9,004 |
| 2017-12-31 | 18,759 | 9,462 | 6,903 |
| 2017-09-30 | 18,358 | 9,208 | 6,467 |
| 2017-06-30 | 17,764 | 8,893 | 6,279 |
| 2017-03-31 | 16,829 | 5,659 | 4,702 |
| 2016-12-31 | 15,978 | 6,103 | 5,990 |
| 2016-09-30 | 15,082 | 5,574 | 5,929 |
| 2016-06-30 | 14,392 | 4,856 | 5,560 |
| 2016-03-31 | 14,280 | 6,664 | 6,842 |
| 2015-12-31 | 14,063 | 6,802 | 6,685 |
| 2015-09-30 | 13,880 | 6,584 | 6,313 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 33 Analyst Estimates (S&P Global) | See Below |
All data from Visa Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-09-30 | ||||
| 2022-09-30 | 8.47 | 8.47 | 8.47 | 1.00 |
| 2021-09-30 | 7.18 | 7.26 | 7.10 | 2.00 |
| 2020-09-30 | 6.15 | 6.35 | 5.84 | 16.00 |
| 2019-09-30 | 5.31 | 5.57 | 4.92 | 21.00 |
| 2018-09-30 | 4.41 | 4.59 | 4.33 | 16.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-06-30 | 4.11 |
| 2018-03-31 | 3.97 |
| 2017-12-31 | 3.02 |
| 2017-09-30 | 2.81 |
| 2017-06-30 | 2.70 |
| 2017-03-31 | 2.00 |
| 2016-12-31 | 2.53 |
| 2016-09-30 | 2.49 |
| 2016-06-30 | 2.31 |
| 2016-03-31 | 2.83 |
| 2015-12-31 | 2.75 |
| 2015-09-30 | 2.58 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Visa's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Visa has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has Visa performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Visa's year on year earnings growth rate has been positive over the past 5 years.
- Visa's 1-year earnings growth exceeds its 5-year average (47.5% vs 8.5%)
- Visa's earnings growth has exceeded the US IT industry average in the past year (47.5% vs 32.7%).
Earnings and Revenue History
All data from Visa Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-06-30 | 20,030.00 | 9,264.00 | 5,406.00 | |
| 2018-03-31 | 19,355.00 | 9,004.00 | 5,223.00 | |
| 2017-12-31 | 18,759.00 | 6,903.00 | 5,002.00 | |
| 2017-09-30 | 18,358.00 | 6,467.00 | 4,827.00 | |
| 2017-06-30 | 17,764.00 | 6,279.00 | 4,723.00 | |
| 2017-03-31 | 16,829.00 | 4,702.00 | 4,402.00 | |
| 2016-12-31 | 15,978.00 | 5,990.00 | 4,152.00 | |
| 2016-09-30 | 15,082.00 | 5,929.00 | 4,018.00 | |
| 2016-06-30 | 14,392.00 | 5,560.00 | 3,819.00 | |
| 2016-03-31 | 14,280.00 | 6,842.00 | 3,898.00 | |
| 2015-12-31 | 14,063.00 | 6,685.00 | 3,845.00 | |
| 2015-09-30 | 13,880.00 | 6,313.00 | 3,834.00 | |
| 2015-06-30 | 13,538.00 | 5,873.00 | 3,794.00 | |
| 2015-03-31 | 13,175.00 | 5,537.00 | 3,684.00 | |
| 2014-12-31 | 12,929.00 | 5,584.00 | 3,681.00 | |
| 2014-09-30 | 12,702.00 | 5,421.00 | 3,610.00 | |
| 2014-06-30 | 12,446.00 | 5,539.00 | 3,759.00 | |
| 2014-03-31 | 12,292.00 | 5,403.00 | 3,677.00 | |
| 2013-12-31 | 12,087.00 | 5,075.00 | 3,669.00 | |
| 2013-09-30 | 11,778.00 | 4,961.00 | 3,671.00 | |
| 2013-06-30 | 11,536.00 | 5,431.00 | 3,545.00 | |
| 2013-03-31 | 11,100.00 | 2,377.00 | 3,616.00 | |
| 2012-12-31 | 10,720.00 | 2,399.00 | 3,525.00 | |
| 2012-09-30 | 10,421.00 | 2,137.00 | 3,435.00 | |
| 2012-06-30 | 10,073.00 | 1,357.00 | 3,265.00 | |
| 2012-03-31 | 9,830.00 | 4,192.00 | 3,189.00 | |
| 2011-12-31 | 9,497.00 | 3,783.00 | 3,106.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Visa has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Visa used its assets more efficiently than the US IT industry average last year based on Return on Assets.
- Visa's use of capital has not improved over the past 3 years (Return on Capital Employed).
Past performance checks
We assess Visa's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Visa has a total score of 5/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is Visa's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Visa's finances.
The net worth of a company is the difference between its assets and liabilities.
- Visa is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Visa's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Visa Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-06-30 | 33,318.00 | 16,627.00 | 11,901.00 |
| 2018-03-31 | 34,103.00 | 16,624.00 | 11,719.00 |
| 2017-12-31 | 33,401.00 | 16,621.00 | 11,551.00 |
| 2017-09-30 | 32,760.00 | 18,367.00 | 13,438.00 |
| 2017-06-30 | 31,944.00 | 15,891.00 | 10,191.00 |
| 2017-03-31 | 30,783.00 | 15,888.00 | 7,922.00 |
| 2016-12-31 | 31,726.00 | 16,451.00 | 9,521.00 |
| 2016-09-30 | 32,912.00 | 15,882.00 | 8,938.00 |
| 2016-06-30 | 32,827.00 | 15,879.00 | 8,752.00 |
| 2016-03-31 | 29,131.00 | 15,876.00 | 19,897.00 |
| 2015-12-31 | 29,476.00 | 15,877.00 | 21,345.00 |
| 2015-09-30 | 29,842.00 | 0.00 | 6,015.00 |
| 2015-06-30 | 28,627.00 | 0.00 | 4,722.00 |
| 2015-03-31 | 28,237.00 | 0.00 | 4,606.00 |
| 2014-12-31 | 27,942.00 | 0.00 | 4,580.00 |
| 2014-09-30 | 27,413.00 | 0.00 | 3,950.00 |
| 2014-06-30 | 27,286.00 | 0.00 | 4,064.00 |
| 2014-03-31 | 27,295.00 | 0.00 | 3,494.00 |
| 2013-12-31 | 27,014.00 | 0.00 | 4,090.00 |
| 2013-09-30 | 26,870.00 | 0.00 | 4,255.00 |
| 2013-06-30 | 27,003.00 | 0.00 | 3,348.00 |
| 2013-03-31 | 26,895.00 | 0.00 | 2,719.00 |
| 2012-12-31 | 27,588.00 | 0.00 | 2,785.00 |
| 2012-09-30 | 27,630.00 | 0.00 | 2,817.00 |
| 2012-06-30 | 26,158.00 | 0.00 | 2,303.00 |
| 2012-03-31 | 28,521.00 | 0.00 | 2,957.00 |
| 2011-12-31 | 27,301.00 | 0.00 | 2,741.00 |
- Visa's level of debt (49.9%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (0% vs 49.9% today).
- Debt is well covered by operating cash flow (72.1%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 25.8x coverage).
Financial health checks
We assess Visa's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Visa has a total score of 3/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is Visa's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Visa
shares you are expected to receive
$12
in your first year as a dividend.
Dividend Amount
- Visa's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.36%).
- Visa's dividend is below the markets top 25% of dividend payers in United States of America (3.52%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 33 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 33 Stocks | 1.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 1971 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.5% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-09-30 | ||
| 2022-09-30 | ||
| 2021-09-30 | 1.08 | 1.00 |
| 2020-09-30 | 1.01 | 12.00 |
| 2019-09-30 | 0.95 | 17.00 |
| 2018-09-30 | 0.84 | 17.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-07-17 | 0.840 | 0.586 |
| 2018-04-18 | 0.840 | 0.639 |
| 2018-02-01 | 0.840 | 0.695 |
| 2017-10-18 | 0.780 | 0.684 |
| 2017-07-18 | 0.660 | 0.638 |
| 2017-04-18 | 0.660 | 0.704 |
| 2017-02-01 | 0.660 | 0.749 |
| 2016-10-18 | 0.660 | 0.820 |
| 2016-07-19 | 0.560 | 0.690 |
| 2016-04-20 | 0.560 | 0.720 |
| 2016-02-05 | 0.560 | 0.757 |
| 2015-10-21 | 0.560 | 0.731 |
| 2015-07-22 | 0.480 | 0.663 |
| 2015-04-23 | 0.480 | 0.699 |
| 2015-01-28 | 0.480 | 0.722 |
| 2014-10-22 | 0.480 | 0.762 |
| 2014-07-23 | 0.400 | 0.753 |
| 2014-04-23 | 0.400 | 0.756 |
| 2014-01-29 | 0.400 | 0.735 |
| 2013-10-23 | 0.400 | 0.764 |
| 2013-07-16 | 0.330 | 0.710 |
| 2013-04-24 | 0.330 | 0.732 |
| 2013-01-30 | 0.330 | 0.820 |
| 2012-10-24 | 0.330 | 0.882 |
| 2012-07-19 | 0.220 | 0.667 |
| 2012-04-26 | 0.220 | 0.734 |
| 2012-02-01 | 0.220 | 0.755 |
| 2011-10-19 | 0.220 | 0.910 |
| 2011-07-22 | 0.150 | 0.691 |
| 2011-04-25 | 0.150 | 0.747 |
| 2011-02-02 | 0.150 | 0.809 |
| 2010-10-20 | 0.150 | 0.808 |
| 2010-08-02 | 0.125 | 0.693 |
| 2010-07-28 | 0.125 | 0.683 |
| 2010-07-22 | 0.125 | 0.663 |
| 2010-04-20 | 0.125 | 0.641 |
| 2010-02-03 | 0.125 | 0.562 |
| 2010-01-21 | 0.125 | 0.603 |
| 2009-11-20 | 0.125 | 0.591 |
| 2009-10-27 | 0.125 | 0.634 |
| 2009-10-21 | 0.125 | 0.674 |
| 2009-07-30 | 0.105 | 0.595 |
| 2009-07-29 | 0.105 | 0.627 |
| 2009-07-27 | 0.105 | 0.627 |
| 2009-05-06 | 0.105 | 0.651 |
| 2009-04-29 | 0.105 | 0.638 |
| 2009-04-23 | 0.105 | 0.698 |
| 2009-02-09 | 0.105 | 0.759 |
| 2009-02-04 | 0.105 | 0.788 |
| 2009-01-26 | 0.105 | 0.895 |
| 2008-11-21 | 0.105 | 0.819 |
| 2008-10-29 | 0.105 | 0.795 |
| 2008-10-16 | 0.105 | 0.843 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Visa is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
- Visa is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Income/ dividend checks
We assess Visa's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Visa afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Visa has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $21,770,704 |
| AGE | 60 |
| TENURE AS CEO | 1.8 years |
CEO Bio
Mr. Alfred F. Kelly, Jr., also known as Al, has been the Chief Executive Officer of Visa Inc. since December 1, 2016. Mr. Kelly served as the Chairman, President and Chief Executive Officer of the 2014 NY/NJ Super Bowl Host Company from April 2011 to August 2014. Mr. Kelly served as the Chief Executive Officer and President at Intersection Co. since February 17, 2016. He served as the President and Head of Global Consumer Group at American Express Company from July 1, 2007 to April 10, 2010. He led many of American Express' key businesses, including the Consumer Card Services Group, OPEN from American Express, Consumer Travel, Global Travelers Cheques and Prepaid Services, Establishment Services, North America, U.S. Customer Service, Global Risk Management and Interactive Services worldwide. He served as Group President of Consumer for Small Business and Merchant Services for American Express Co. from October 2005 to July 1, 2007. He served as Group President of U.S. Consumer and Small Business Services for Travel Releated Services Company, Inc. since June 2000. He served as the President of Consumer Card Services Group, TRS since October 1998. He served as an Executive Vice President and General Manager for Consumer Marketing, TRS since February 1997. He served as the Head of Information Systems at the White House from 1985 to 1987, where he oversaw the information processing functions for several government agencies that comprise the Executive Office of the President. He also held management positions in strategic and financial planning at PepsiCo. He has an extensive global experience in consumer marketing, strategic planning and development, customer loyalty and information technology. He has been an Independent Director of Visa Inc. since January 29, 2014. He was a Director of Metropolitan Life Insurance Company from 2009 until June 12, 2018. He served as a Director for Affinion Group Holdings, Inc. from February 24, 2011 to August 9, 2013. He served as a Director of The Hershey Company from August 11, 2005 to November 11, 2007. He served as Vice Chairman of the Wall Street Charity Golf Classic for 12 years. He served as a Director of Affinion Group, Inc. from February 24, 2011 to August 2013. He served as the Chairman, Board of Directors of School of the Holy Child. He serves as a Trustee of The New York and Presbyterian Hospital and Iona Preparatory School. He served as a Member of Boards of Trustees of St. Joseph's Seminary and College and New York Catholic Foundation. He serves on the Board of Trustees of Iona College, New Rochelle, NY. He serves on the Board of Directors of Concern Worldwide USA and the Carvel Children's Rehabilitation Center and serves as Member of Council on Foreign Relations. Mr. Kelly holds a Master of Business Administration and Bachelor of Arts in Liberal Arts (Summa Cum Laude) from Iona College. He was Director of MetLife, Inc. from June 2009 until June 12, 2018.
CEO Compensation
- Al's compensation has increased by more than 20% in the past year.
- Al's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Visa management team in years:
- The tenure for the Visa management team is about average.
Management Team
Al Kelly
CEO & Director
$22M
60
1.8 yrs
Ryan McInerney
President
$9M
43
5.3 yrs
Vasant Prabhu
Executive VP & CFO
$8M
58
3.7 yrs
Rajat Taneja
Executive Vice President of Technology & Operations
$10M
54
Kelly Tullier
Executive VP
$5M
52
4 yrs
James Hoffmeister
Senior VP
45
2.5 yrs
Mike Milotich
Senior Vice President of Investor Relations
0.5 yrs
Lynne Biggar
Executive VP and Chief Marketing & Communications Officer
55
2.7 yrs
Jennifer Grant
Executive VP of Human Resources & Chief Human Resource Officer
46
0.2 yrs
Ellen Richey
Vice Chairman & Chief Risk Officer
$4M
70
11.7 yrs
Board of Directors Tenure
Average tenure and age of the Visa board of directors in years:
- The tenure for the Visa board of directors is about average.
Board of Directors
Robert Matschullat
Non-Executive Chairman of the Board
$497K
70
5.6 yrs
Al Kelly
CEO & Director
$22M
60
4.8 yrs
Riko Abdurrahman
President Director of PT Visa Worldwide Indonesia
0.7 yrs
Mary Cranston
Director
$355K
70
11 yrs
Suzanne Nora Johnson
Director
$350K
61
11 yrs
John A. Swainson
Director
$335K
64
11 yrs
Francisco Fernández-Carbajal
Director
$325K
63
11 yrs
Maynard Webb
Director
$335K
62
4.8 yrs
Lloyd Carney
Director
$315K
56
3.3 yrs
John Lundgren
Director
$31K
66
1.5 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Start | End | Shares | Value (USD) |
|---|---|---|---|---|---|---|---|
| 10. Aug 18 | Sell | Vasant Prabhu | Individual | 08. Aug 18 | 08. Aug 18 | -25,064 | $-3,523,111.13 |
| 11. May 18 | Sell | Ryan McInerney | Individual | 10. May 18 | 10. May 18 | -38,500 | $-5,056,116.45 |
| 01. May 18 | Sell | James Hoffmeister | Individual | 30. Apr 18 | 30. Apr 18 | -687 | $-87,707.98 |
| 15. Feb 18 | Sell | Lynne Biggar | Individual | 14. Feb 18 | 14. Feb 18 | -1,712 | $-205,440.00 |
| 15. Dec 17 | Sell | Robert Matschullat | Individual | 13. Dec 17 | 13. Dec 17 | -6,220 | $-707,561.08 |
| 29. Nov 17 | Sell | James Hoffmeister | Individual | 27. Nov 17 | 27. Nov 17 | -2,146 | $-240,541.71 |
Management checks
We assess Visa's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Visa has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
External News
Simply Wall St News
Does The Hype Around Visa Inc's (NYSE:V) Growth Justify Its August Share Price?
Growth expectations for Visa Inc (NYSE:V) are high, but many investors are starting to ask whether its last close at $139.92 can still be rationalized by the future potential. … Let’s look into this by assessing V's expected growth over the next few years. … According to the analysts covering the company, the following few years should bring about good growth prospects for Visa
Simply Wall St - – Full articleShould You Buy Visa Inc (NYSE:V) At US$140?
Today we're going to take a look at the well-established Visa Inc (NYSE:V). … saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?
Simply Wall St - – Full articleWhat Do You Get For Owning Visa Inc (NYSE:V)?
Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Visa’s capital returns we will look at a useful metric called return on capital employed.
Simply Wall St - – Full articleWho Are The Top Investors In Visa Inc (NYSE:V)?
I am going to take a deep dive into Visa Inc’s (NYSE:V) most recent ownership structure, not a frequent subject of discussion among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.
Simply Wall St - – Full articleIs Visa Inc's (NYSE:V) PE Ratio A Signal To Sell For Investors?
Yes, this expensive multiple can initially be deterring, but there are many company-specific elements which are not captured in such a static ratio – such as its growth outlook and debt obligations … This article will cover some key aspects we should consider in order to determine the best multiple to be used for
Simply Wall St - – Full articleWhat is Behind Visa Inc's (NYSE:V) Superior ROE?
I am writing today to help inform people who are new to the stock market. … If V borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface
Simply Wall St - – Full articleIs Visa Inc's (NYSE:V) PE Ratio A Signal To Sell For Investors?
The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Visa Inc (NYSE:V). … While V might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions
Simply Wall St - – Full articleIs Visa Inc's (NYSE:V) 27.35% ROE Strong Compared To Its Industry?
View our latest analysis for Visa Breaking down Return on Equity Return on Equity (ROE) weighs Visa’s profit against the level of its shareholders’ equity. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:V Last Perf Jun 4th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.
Simply Wall St - – Full articleWhy Visa Inc (NYSE:V) Could Be A Buy
In addition to this, it seems like Visa’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … V’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.
Simply Wall St - – Full articleDid Visa Inc's (NYSE:V) Recent Earnings Growth Beat The Trend?
When Visa Inc (NYSE:V) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Visa's average earnings over the past couple of years, and its industry performance. … Check out our latest analysis for Visa Commentary On V's Past Performance To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data.
Simply Wall St - – Full articleCompany Info
Map
Description
Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions; and offers fraud protection for account holders and assured payment for merchants. The company also offers gateway services for merchants to accept, process, and reconcile payments; manage fraud; and safeguard payment security online, as well as processing services for participating issuers of visa debit, prepaid, and ATM payment products. In addition, it provides digital products, including Visa Checkout that offers consumers an expedited, and secure payment experience for online transactions; and Visa Direct, a push payment product platform, that allows businesses, governments, and consumers to use the Visa network to transfer funds from an originating account to another via a debit, prepaid, or credit card number, as well as Visa token service that replaces the card account numbers from the transaction with a token. Further the company offers corporate (travel) and purchasing card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. was incorporated in 2007 and is headquartered in San Francisco, California.
Details
| Name: | Visa Inc. |
| V | |
| Exchange: | NYSE |
| Founded: | 2007 |
| $311,649,600,159 | |
| 2,225,114,951 | |
| Website: | http://usa.visa.com |
| Address: |
Visa Inc. PO Box 8999, San Francisco, California, 94128, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | V | Class A Common Stock | New York Stock Exchange | US | USD | 19. Mar 2008 | |
| DB | 3V64 | Class A Common Stock | Deutsche Boerse AG | DE | EUR | 19. Mar 2008 | |
| XTRA | 3V64 | Class A Common Stock | XETRA Trading Platform | DE | EUR | 19. Mar 2008 | |
| LSE | 0QZ0 | Class A Common Stock | London Stock Exchange | GB | USD | 19. Mar 2008 | |
| SWX | V | Class A Common Stock | SIX Swiss Exchange | CH | CHF | 19. Mar 2008 | |
| WBAG | VISA | Class A Common Stock | Wiener Boerse AG | AT | EUR | 19. Mar 2008 | |
| SNSE | V | Class A Common Stock | Santiago Stock Exchange | CL | USD | 19. Mar 2008 | |
| BMV | V * | Class A Common Stock | Bolsa Mexicana de Valores | MX | MXN | 19. Mar 2008 | |
| BVL | V | Class A Common Stock | Bolsa de Valores de Lima | PE | USD | 19. Mar 2008 | |
| BOVESPA | VISA34 | BDR EACH REPR 1 COM SHS | Bolsa de Valores de Sao Paulo | BR | BRL | 02. Feb 2012 |
Number of employees
Current staff
Industry
| Data Processing and Outsourced Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2018/10/15 21:22 |
| End of day share price update: | 2018/10/15 00:00 |
| Last estimates confirmation: | 2018/10/15 |
| Last earnings filing: | 2018/07/27 |
| Last earnings reported: | 2018/06/30 |
| Last annual earnings reported: | 2017/09/30 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
