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

3/6

Valuation Score 3/6

  • 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/Revenue14.9x
Enterprise Value/EBITDA21.3x
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 Average34.6x
MA Mastercard
33.7x14.7%US$329.9b
ADP Automatic Data Processing
35.2x8.5%US$106.6b
PYPL PayPal Holdings
38.5x22.3%US$88.5b
FISV Fiserv
31x14.8%US$64.5b
V Visa
29.5x10.8%US$431.0b

Price-To-Earnings vs Peers: V is good value based on its Price-To-Earnings Ratio (29.5x) compared to the peer average (34.6x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.7%
n/an/an/a

Price-To-Earnings vs Industry: V is expensive based on its Price-To-Earnings Ratio (29.5x) compared to the US IT industry average (28.3x)


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 Ratio29.5x
Fair PE Ratio37.4x

Price-To-Earnings vs Fair Ratio: V is good value based on its Price-To-Earnings Ratio (29.5x) compared to the estimated Fair Price-To-Earnings Ratio (37.4x).


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 ($209.06) is trading below our estimate of fair value ($241.62)

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


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$209.06
US$244.68
+17.0%
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$221.00n/a33
May ’23US$213.13
US$267.32
+25.4%
7.4%US$310.00US$221.00n/a32
Apr ’23US$226.36
US$271.82
+20.1%
7.1%US$312.00US$221.00n/a32
Mar ’23US$208.97
US$270.25
+29.3%
7.9%US$312.00US$215.00n/a33
Feb ’23US$232.36
US$267.72
+15.2%
8.6%US$312.00US$210.00n/a33
Jan ’23US$216.71
US$272.18
+25.6%
6.6%US$308.00US$221.00n/a32
Dec ’22US$190.16
US$273.91
+44.0%
6.5%US$308.00US$217.00n/a32
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
May ’22US$233.56
US$261.83
+12.1%
7.4%US$297.00US$194.00US$213.1335
Apr ’22US$216.86
US$242.67
+11.9%
7.2%US$297.00US$194.00US$226.3636
Mar ’22US$216.63
US$239.43
+10.5%
6.3%US$270.00US$194.00US$208.9735
Feb ’22US$198.36
US$239.40
+20.7%
6.4%US$270.00US$194.00US$232.3635
Jan ’22US$218.73
US$227.54
+4.0%
7.1%US$260.00US$186.00US$216.7135
Dec ’21US$211.20
US$224.35
+6.2%
7.2%US$260.00US$186.00US$190.1634
Nov ’21US$181.71
US$219.45
+20.8%
7.1%US$250.00US$171.00US$212.4633

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


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