Visa Inc.

Exchange

NYSE

Sector

Miscellaneous

Industry

Business Services

Market Cap.

244.76B

Vuru Grade

58.90/100

Current Price

$107.05
+0.03 (+0.03%)

Growth Price

$40.43
Overvalued by 62.23%

Stability Price

$12.63
Overvalued by 88.20%

Company Metrics

  • P/E 39.81
  • P/S 13.77
  • P/B 9.27
  • EPS 2.69
  • Cash ROIC 11.83%
  • Cash Ratio -
  • Dividend 0.66 / 0.61%
  • Avg. Vol. 6.82M
  • Shares 2.29B
  • Market Cap. 244.76B

Company Description

Visa Inc. operates retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services linking issuers and acquirers. It also offers a range of payme... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Why Visa Inc Stock Has Me Singing the 'Fear of Missing Out' Blues
Investorplace.com - 2 hours ago
Like seemingly every other stock in this market, Visa Inc (NYSE:V) has been red-hot in 2017, with V stock up nearly 40%. Visa, along with Mastercard Inc (NYSE:MA), were two of my favorite long-term holdings, but these big runs - MA stock is up even ...
Visa Inc. Declares Quarterly Dividend, Increases Dividend Rate by 18%, and ...
Business Wire (press release) - Oct 18, 2017
SAN FRANCISCO--(BUSINESS WIRE)--Visa Inc. (NYSE:V) today announced that on October 17, 2017, its board of directors declared a quarterly cash dividend of $0.195 per share of class A common stock (determined in the case of class B and C common ...
Visa Inc (V) Stock Is Too Expensive Unless You Buy on the Dips
Investorplace.com (blog) - Oct 16, 2017
The beauty of Visa is that its core business does not endure any material risk as far as the transactions themselves. V stock is not about revenue from interest or fees from account holders.
CAPROCK Group Inc. Increases Position in Visa Inc. (V) - The Ledger Gazette
Visa Inc. (V) Earns Buy Rating from KeyCorp - TrueBlueTribune
Taking a Fresh Look at Visa Inc. (V)
StockNewsJournal - 29 minutes ago
Visa Inc. (V) is an interesting player in the Financial space, with a focus on Credit Services. The stock has been active on the tape, currently trading at $107.02, down from yesterday's close by -0.72%.
Would you give your credit card firm a SELFIE? Visa reveals new biometric ID ...
Daily Mail - 23 hours ago
Payment processing giant Visa Inc. is launching a platform to allow banks to integrate various types of biometrics - your fingerprint, face, voice, etc.
Applying for a credit card? Please take a selfie - WRAL.com
Is Visa Inc. a Buy?
Motley Fool - Oct 4, 2017
It's a fine time to be Visa (NYSE:V). As the top credit card processor in a world rapidly moving away from cash to alternatives like plastic, the company is posting strong growth in all the right areas.
Visa Inc. (V) Moves Lower on Volume Spike for October 19
Equities.com - 22 hours ago
Visa Inc. (V) traded on unusually high volume on Oct. 19, as the stock lost 0.72% to close at $107.02. On the day, Visa Inc. saw 10.73 million shares trade hands on 47,156 trades. Considering that the stock averages only a daily volume of 6.33 million ...
Visa Inc (V) Stock Is Not Cheap but It Still Is a Buy
Investorplace.com - Oct 13, 2017
Warren Buffett famously said, “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
Visa Inc. (V)'s Average EBITDA Per Share Growth Rate was 43.2 percent during ... - StandardOracle
Visa Inc. (V) Upgraded at Wells Fargo & Company - TrueBlueTribune
Mastercard Incorporated (MA) vs. Visa Inc. (V)?: Which Should You Choose?
Economic News - 6 hours ago
Mastercard Incorporated (NYSE:MA) and Visa Inc. (NYSE:V) are both Financial companies that recently hit new highs. The recent price action of these companies has left many investors wondering what actions to take.
USA Financial Portformulas Corp Buys Visa Inc, Activision Blizzard Inc ...
Nasdaq - Oct 12, 2017
USA Financial Portformulas Corp initiated holdings in Visa Inc. The purchase prices were between $93.25 and $106.21, with an estimated average price of $101.34.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for V to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate V's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$107.05 Current Price

$40.43 Growth Price (DCF)

Overvalued by 62.23%


Growth Rate Assumed by Market: 45.06%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.63 Stability Price (EPV)

Overvalued by 88.20%


Discount Rate: 15.0%

$54.81 Book Price

Overvalued by 48.80%


Satisfactory Cash Return on Invested Capital over the past 5 years

V has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely V could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

V has created $11.83 of cash for every $100 invested.
Figures in USD. Fiscal year ends in September
20122013201420152016
Free Cash Flow 4.63B 2.55B 6.65B 6.17B 5.05B
divided by
Invested Capital 40.01B 35.96B 38.57B 40.24B 64.04B
Cash ROIC 11.58% 7.09% 17.25% 15.33% 7.89%

Excellent Return on Equity over the past 5 years

Over the past 5 years, V has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

V has generated $17.11 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in September
20122013201420152016
Net Income 2.14B 4.98B 5.44B 6.33B 5.99B
divided by
Stockholders' Equity 27.63B 26.87B 27.41B 29.84B 32.91B
Return on Equity 7.76% 18.53% 19.84% 21.21% 18.20%

Excellent Business Performance over the past 10 years

V has been able to maintain profitability in good times and bad. This could mean V has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

V has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Free Cash Flow 505.15M 116.00M 252.00M 2.45B 3.52B 4.63B 2.55B 6.65B 6.17B 5.05B

Good Balance Sheet

V's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 4.39B 34.98B 32.28B 33.41B 34.76B 40.01B 35.96B 38.57B 40.24B 64.04B
Current Liabilities - - - - - - - - - -
Total Liabilities 4.89B 13.84B 9.09B 8.40B 8.32B 12.38B 9.09B 11.16B 10.39B 31.12B
Stockholder' Equity -501.33M 21.14B 23.19B 25.01B 26.44B 27.63B 26.87B 27.41B 29.84B 32.91B
Current Ratio - - - - - - - - - -
TL-to-TA 1.11 0.40 0.28 0.25 0.24 0.31 0.25 0.29 0.26 0.49

Consistent Reinvestment of Profits over the past 10 years

V has consistently retained profits. This may put V in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, V can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Retained Earnings - 186.00M 2.22B 4.37B 6.71B 7.81B 7.97B 9.13B 11.84B 10.46B
Retained Earnings Growth - - 1,093.01% 96.85% 53.53% 16.45% 2.11% 14.51% 29.70% -11.66%

Varying Competitive Advantage over the past 10 years

V likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$28.44 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Net Income -1.08B 804.00M 2.35B 2.97B 3.65B 2.14B 4.98B 5.44B 6.33B 5.99B
divided by
Revenue 3.59B 6.26B 6.91B 8.07B 9.19B 10.42B 11.78B 12.70B 13.88B 15.08B
Net Profit Margin -29.98% 12.84% 34.05% 36.78% 39.73% 20.57% 42.28% 42.81% 45.59% 39.72%

Weak Pricing Power over the past 10 years

V is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that V has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 3.59B 6.26B 6.91B 8.07B 9.19B 10.42B 11.78B 12.70B 13.88B 15.08B
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

V has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that V may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

14.98% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Capital Expenditure - 415.00M 306.00M 241.00M 353.00M 376.00M 471.00M 553.00M 414.00M 523.00M
divided by
Net Income -1.08B 804.00M 2.35B 2.97B 3.65B 2.14B 4.98B 5.44B 6.33B 5.99B
Capital Expenditure Ratio - 51.62% 13.00% 8.13% 9.67% 17.54% 9.46% 10.17% 6.54% 8.73%

Strong Dividend History over the past 10 years

V has consistently distributed a dividend for the past 9 years. This suggests V is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Dividend Paid - 93.00M 318.00M 368.00M 423.00M 595.00M 864.00M 1.01B 1.18B 1.35B
divided by
Shares Outstanding - 1.39B 1.05B 739.00M 1.02B 678.00M 656.00M 631.00M 2.46B 2.41B
Dividend Paid Per Share - 0.07 0.30 0.50 0.41 0.88 1.32 1.59 0.48 0.56
Price at Year End - 49.82 86.70 69.60 101.34 148.65 220.91 264.55 78.35 78.02
Dividend Yield - 0.13% 0.35% 0.72% 0.41% 0.59% 0.60% 0.60% 0.61% 0.72%

Strong History of Stock Buybacks over the past 10 years

V has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Shares Outstanding - 1.39B 1.05B 739.00M 1.02B 678.00M 656.00M 631.00M 2.46B 2.41B
Stock Bought Back - -100.00% 32.79% 41.95% -27.69% 50.74% 3.35% 3.96% -74.32% 1.78%
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