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 AnalystHold
Overall Rating6.7/10
Generated at:2026-06-03 17:39:43
Analysis based on 5 financial reports from periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31. Market price data as of 2026-06-03. Data includes financial ratios, valuation multiples, and growth metrics derived from quarterly financial reports.
Overview

Visa Inc. is a global leader in digital payments with a strong 'toll-road' business model that benefits from secular growth in digital payments without taking on credit risk. The company demonstrates exceptional profitability and strong financial health, but trades at premium valuation multiples that reflect its quality and growth prospects.

Valuation
3/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Hold for existing shareholders as the company's quality justifies maintaining a position for long-term compounding.
  • For new investors, the current price point does not offer a clear margin of safety; a more attractive entry point would be closer to or below $300.
  • Monitor the company's ability to maintain high growth rates to justify its valuation.

Valuation

P/E TTM
25.72
P/E LYR
33.56
P/B MRQ
16.04
P/S TTM
--
AI Analysis
  • Visa trades at premium valuation multiples (P/E 25.72, Forward P/E 33.56, P/B 16.04, P/S 13.06) that reflect its quality, growth prospects, and market position. Based purely on traditional multiples, it appears overvalued relative to the broader market, but such a premium is historically justified for this defensive company with consistent growth. A reasonable 12-month fundamental target price range is $340 - $370.
  • Current market price is $312.40 as of 2026-06-03
  • Valuation multiples include P/E Ratio (TTM) of 25.72, Forward P/E (Dynamic) of 33.56, Price-to-Book (PB) of 16.04, and Price-to-Sales (PS-TTM) of 13.06
  • These multiples are significantly higher than market averages
  • The high P/B ratio reflects the company's immense profitability and intangible asset value not fully captured on the balance sheet
  • Elevated P/S and P/E ratios are premiums investors pay for Visa's predictable growth, high margins, and dominant competitive position
  • Forward P/E being higher than TTM P/E suggests market expectations for continued strong earnings growth
  • Based purely on traditional valuation multiples, Visa appears overvalued relative to the broader market
  • For a company with its defensive characteristics, consistent double-digit growth, and exceptional returns on capital, such a premium is historically justified
  • Current price is within the recent 60-day trading range of ~$293.89 to ~$341.98
  • A reasonable 12-month fundamental target price range is $340 - $370
Valuation trend

Profitability

ROE TTM
59.22%
Net margin
53.65%
Gross margin
100.00%
Total revenue
22.13B
AI Analysis
  • Visa demonstrates exceptional and consistent profitability with extraordinary margins (gross margin 100%, net margin 53.65%) due to its asset-light, scalable network model. The company shows outstanding returns on capital (ROE 59.22%, ROA 22.51%) and strong growth trajectory with Q2 2026 revenue growth of 15.84% year-over-year and net income growth of 22.46%.
  • Visa demonstrates exceptional and consistent profitability, a hallmark of its wide-moat business
  • The company reports a gross margin of 100% and a net margin of 53.65% based on the latest Q2 2026 data
  • These extraordinary margins stem from its asset-light, scalable network model where incremental transaction volume carries minimal marginal cost
  • Return on Equity (ROE) is 59.22% (TTM) and Return on Assets (ROA) is 22.51% (TTM)
  • These metrics indicate highly efficient use of shareholder capital and corporate assets to generate profits
  • Recent financials show sustained growth
  • For Q2 2026, revenue grew 15.84% year-over-year and net income grew 22.46%
  • This indicates the company is successfully capitalizing on the growth of electronic payments globally
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--38.48%52.07%15.26%59.22%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue19.10B29.28B40.00B10.90B22.13B

Financial health

Debt/Asset
62.48%
Current ratio
1.09
Quick ratio
--
Cash ratio
1.09
AI Analysis
  • Visa's financial health is strong with a robust balance sheet and excellent cash flow generation typical for a payment network. The company maintains sufficient liquidity (current ratio 1.09) and manageable leverage (debt-to-asset ratio 62.48%) given its predictable revenue streams and strong profitability.
  • The financial health of Visa Inc. is strong, characterized by a robust balance sheet and excellent cash flow generation, typical for a payment network
  • The current ratio of 1.09 indicates sufficient short-term assets to cover short-term liabilities, though it is not excessively high, which is common for asset-light, cash-generative businesses
  • The debt-to-asset ratio of 62.48% reflects a moderate level of leverage
  • This leverage is manageable given the company's highly predictable and recurring revenue streams and strong profitability
  • The debt is likely used strategically for share repurchases and acquisitions
  • While not explicitly provided in the data, Visa's business model inherently produces strong operating cash flows, which fund dividends, share buybacks, and strategic investments
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset59.04%61.35%61.95%59.95%62.48%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.081.121.081.111.09