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:2026-04-17 17:41:30
Analysis based on 5 financial reports: 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31, and 2024-12-31. Stock price data as of 2026-04-17 close. Data includes trailing twelve months (TTM) metrics and quarterly comparisons. Analysis uses real financial data from Visa's reported financial statements.
Overview

Visa Inc. is a fundamentally exceptional company with a dominant market position in digital payments, pristine financials, and strong growth. Its business model is asset-light with world-class profitability metrics, supported by a robust balance sheet. However, the stock is currently priced at a premium valuation that reflects its quality and growth prospects, resulting in a balanced risk/reward profile at the current price.

Valuation
3/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Hold existing positions to benefit from Visa's durable competitive advantages and long-term growth.
  • New investors should wait for better entry points during broader market pullbacks, as the current price of $317.02 offers limited margin for error.
  • A reasonable price range for accumulation is $295-$335, with a fundamental target price of $330-$350 contingent on continued double-digit revenue growth.

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 valuation multiples (P/E 28.81x, P/S 52.79x) that reflect its quality, growth, and defensive characteristics. The current price of $317.02 is towards the upper half of the recent trading range ($293.89-$337.59), leaving little margin for error despite the company's strong fundamentals.
  • Current stock price is $317.02 (as of 2026-04-17 close)
  • Valuation multiples are significantly above market averages: P/E (TTM) 28.81x, Forward P/E 33.56x, Price-to-Book 15.45x, Price-to-Sales 52.79x
  • High P/E and P/S ratios are justified by the company's premium business model, high margins, and consistent growth profile
  • Very high P/B ratio is typical for firms with immense intangible value (brand, network) and minimal physical assets
  • Stock has traded between $293.89 (2026-04-01) and $337.59 (2026-02-05) over the past 60 days
  • Current price is towards the upper half of this recent trading range
  • Reasonable price range based on recent trading is $295 - $335
  • Fundamental target price would be in the range of $330 - $350, contingent on continuation of double-digit revenue growth trajectory
Valuation trend

Profitability

ROE TTM
15.26%
Net margin
53.69%
Gross margin
100.00%
Total revenue
10.90B
AI Analysis
  • Visa exhibits world-class profitability metrics with extraordinary margins, consistent revenue growth, and high returns on equity and assets, underpinned by its network-based business model.
  • Company reports gross margin of 100% and net margin of 53.69% for the latest quarter
  • Extraordinary margins are a function of its payment processing model where revenue is largely fee-based with minimal direct cost of goods sold
  • Recent financials demonstrate consistent top-line growth with revenue growth in the 9-15% range over the last five reported quarters
  • Latest quarter (Q1 2025) shows revenue up 14.63% year-over-year
  • Net income growth has been positive, with the latest quarter showing a strong 14.34% increase
  • Return on Equity (ROE) of 15.26% (TTM) and Return on Assets (ROA) of 5.96% (TTM) are strong, especially considering the company's scale
  • High ROE and ROA confirm that management is highly effective at generating profits from its equity base and asset investments
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 maintains strong financial health with a robust balance sheet, sufficient liquidity, manageable leverage, and exceptional cash flow generation from its asset-light business model.
  • Current ratio of 1.11 indicates sufficient short-term assets to cover short-term liabilities
  • Current ratio is not excessively high, which is typical for asset-light, high-cash-flow businesses like Visa
  • Debt-to-asset ratio of 59.95% shows a moderate level of financial leverage
  • This level of debt is manageable given the company's extremely stable and high-margin cash flows
  • Business model is exceptionally asset-light, leading to outstanding returns
  • Most recent quarterly report (Q1 2025) shows continued growth with revenue up 14.63% year-over-year and net income up 14.34%
  • Company's financial health is strong, characterized by a robust balance sheet and high profitability
Leverage
2024Q42025Q12025Q22025Q32025Q4
Debt/Asset58.32%59.04%61.35%61.95%59.95%
Liquidity
2024Q42025Q12025Q22025Q32025Q4
Current ratio1.121.081.121.081.11