Visa Inc.(V) - Stock detail

Visa Inc.

US
V
Visa Inc.(Listing date: 03/19/2008)

Visa Inc. was incorporated in Delaware in May 2007 and is a global payments technology company. It enables innovative, secure and reliable electronic payments in more than 200 countries and territories. The company facilitates digital payments for consumers, merchants, financial institutions, businesses, strategic partners and government entities worldwide through innovative technologies. Its advanced transaction processing network, VisaNet, enables the authorization, clearing and settlement of payment transactions and provides a broad range of products, platforms and value-added services to its financial institution and merchant clients.

AI Value AnalystBuy
Overall Rating8/10
Generated at:2026-03-04 16:36:36
Analysis based on 5 financial reports covering periods: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Data includes quarterly and annual financial metrics, market pricing as of 2026-03-05, and comprehensive fundamental analysis of Visa Inc.
Overview

Visa Inc. demonstrates strong fundamental conditions with exceptional profitability, robust financial health, and reasonable valuation relative to its growth prospects. The company operates a dominant global payment network with durable competitive advantages and exposure to secular growth in digital payments.

Valuation
7/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Buy with price target range of $330-$350 for short-term (3-6 months) and $375+ for long-term (12+ months).
  • Implement strict stop-loss at $300 (approx.
  • 6.5% downside) and consider phased entry to average into positions and mitigate timing risk.

Valuation

P/E TTM
28.81
P/E LYR
33.56
P/B MRQ
15.45
P/S TTM
--
AI Analysis
  • Visa trades at premium valuations relative to market averages but appears slightly undervalued relative to forward earnings estimates, offering approximately 3-9% upside to target price range of $330-$350.
  • Forward PE ratio of 33.56 and trailing PE of 28.81 indicate premium valuations relative to market averages
  • Price-to-Book ratio of 15.45 reflects high market valuation
  • Price-to-Sales ratio (TTM) of 56.76 demonstrates premium pricing
  • Based on TTM EPS of $10.20 and forward PE of 33.56, calculated price target is $342.31
  • Reasonable target range is $330-$350 considering historical PE ranges (28-34) and growth prospects
  • Current price of $320.47 appears slightly undervalued relative to target range, offering approximately 3-9% upside
  • Valuation multiples are justified by high growth, profitability, and market leadership
Valuation trend

Profitability

ROE TTM
15.26%
Net margin
53.69%
Gross margin
100.00%
Total revenue
10.90B
AI Analysis
  • Visa exhibits exceptional profitability with double-digit revenue growth, consistently high margins above 50%, and strong return metrics, characteristic of its dominant market position.
  • Recent quarterly revenue growth robust with Q1 2025 showing 14.63% year-over-year growth to $10.90B
  • Double-digit growth pattern across recent quarters
  • Gross margins remain at 100% due to fee-based revenue model
  • Net margins consistently above 50%, with Q1 2025 at 53.69%
  • Return on Equity (ROE) stands at 15.26% (TTM), strong for financial services sector
  • Return on Assets (ROA) is 5.96% (TTM)
  • Diluted EPS grew 14.34% year-over-year in Q1 2025 to $3.03
  • Effective capital allocation and profit retention demonstrated
  • ROE has declined from previous quarters (e.g., 52.07% in annual 2025) due to equity increases or retained earnings
Profitability
2024Q42025Q12025Q22025Q32025Q4
ROE TTM--25.13%38.48%52.07%15.26%
Earnings
2024Q42025Q12025Q22025Q32025Q4
Total revenue9.51B19.10B29.28B40.00B10.90B

Financial health

Debt/Asset
59.95%
Current ratio
1.11
Quick ratio
--
Cash ratio
1.11
AI Analysis
  • Visa demonstrates strong financial health with adequate liquidity, moderate leverage, and robust cash flow generation supported by its capital-light business model and stable revenue streams.
  • Current ratio of 1.11 indicates adequate short-term liquidity
  • Debt-to-equity ratio (implied by 59.95%) is moderate but manageable
  • Stable revenue streams and high profitability support leverage management
  • Capital-light business model supports robust cash flow generation
  • High-margin, recurring revenue with minimal capital expenditure requirements
  • Consistent revenue growth and high net income margins reduce fundamental risk
  • Strong free cash flow generation characteristic of payment network business
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset58.32%59.04%61.35%61.95%59.95%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.121.081.121.081.11