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:2026-06-11 17:40:31
Analysis based on 5 financial reports from periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, 2025-03-31. Stock price data as of 2026-06-12. All financial metrics are derived from the provided fundamental data. The valuation analysis includes a correction to initial calculations based on TTM earnings rather than quarterly annualization.
Overview

Visa Inc. is a global leader in payment technology with a dominant position in the digital payments ecosystem. The company demonstrates strong financial health, exceptional profitability with high margins, and robust revenue and earnings growth. Its valuation, while premium, is supported by world-class returns and its current stock price appears undervalued relative to fundamental fair value estimates.

Valuation
7/10
Profitability
9/10
Financial health
8/10
Operation Advice
  • Based on fundamental analysis, Visa is a Buy.
  • The current price of $319.05 is below the calculated fair value range of $338 to $405, with a 12-month target price of $371.
  • Investors should consider accumulating shares at current levels, given the company's strong fundamentals, growth trajectory, and undervalued status.
  • Long-term holding is advised to benefit from the secular growth trend in digital payments.

Valuation

P/E TTM
25.72
P/E LYR
33.56
P/B MRQ
16.04
P/S TTM
--
AI Analysis
  • Visa's valuation reflects its high-quality, growth-oriented profile with premium multiples justified by exceptional returns. The current stock price of $319.05 is undervalued relative to a revised fundamental fair value range of $338 to $405, with a target price of $371.
  • Current Price: $319.05 (as of 2026-06-12).
  • Key Multiples: P/E (TTM): 25.72, P/E (Forward/Dynamic): 33.56, P/B: 16.04, P/S (TTM): 13.34.
  • These multiples are significantly above market averages but justified by the company's exceptional ROE, consistent high-teens earnings growth, and dominant market position.
  • A rough PEG ratio estimate would be around 1.5-1.7, which is reasonable for a premium franchise.
  • Revised Fair Value Range: $338 to $405 based on forward P/E of 26x-30x on a forward EPS estimate of $13.00-$13.50.
  • Revised 12-Month Target Price: ~28x P/E on $13.25 EPS = $371.
  • At $319.05, the stock is trading below the lower end ($338) of the revised fair value range, suggesting it is undervalued based on fundamental metrics.
Valuation trend

Profitability

ROE TTM
59.22%
Net margin
53.65%
Gross margin
100.00%
Total revenue
22.13B
AI Analysis
  • Visa exhibits outstanding and consistent profitability with strong double-digit revenue growth, exceptionally high net margins, and robust earnings growth that outpaces revenue growth.
  • Revenue Growth: The latest quarterly revenue (Q2 2026) of $22.13B grew 15.84% year-over-year.
  • This continues a trend of strong double-digit growth visible in recent quarters.
  • Margins: The company reports a gross margin of 100%, characteristic of its fee-based, asset-light network model.
  • The net margin is exceptionally high at 53.65% for the latest quarter.
  • This demonstrates its ability to convert a large portion of revenue into profit.
  • Earnings Growth: Net income for Q2 2026 was $11.87B, a robust 22.46% year-over-year increase.
  • This outpaced revenue growth, indicating operating leverage and effective cost management.
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 sufficient liquidity, manageable leverage, and exceptionally high returns on equity and assets indicating superb management efficiency and a powerful competitive moat.
  • Liquidity: The current ratio of 1.09 indicates sufficient short-term assets to cover short-term liabilities, though it is not excessively high, which is typical for an asset-light, cash-generative business model.
  • Solvency: The debt-to-asset ratio of 62.48% is moderate.
  • For a company with Visa's extremely stable and high-margin cash flows, this level of leverage is generally considered manageable and can enhance returns on equity.
  • Efficiency & Returns: The standout metrics are the Return on Equity (ROE) of 59.22% (TTM) and Return on Assets (ROA) of 22.51% (TTM).
  • These are exceptionally high figures, indicating superb management efficiency and a powerful competitive moat that generates tremendous profits from its asset base and shareholder equity.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset59.04%61.35%61.95%59.95%62.48%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio1.081.121.081.111.09