Visa Inc.
Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to p…
Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a platform which facilitates money movement, enabling clients to collect, hold, convert, and send funds across its network; and issuing solutions, such as airport lounge access, dining reservations, shopping experiences, event tickets, and seller offers. In addition, the company provides acceptance solutions, an omnichannel payment integration with e-commerce platforms; risk detection and prevention solutions; and advisory and other services comprising consulting practice, proprietary analytics models, data scientists and economists, marketing services, and managed services. It provides its services under the Visa, Visa Electron, V PAY, Interlink, and PLUS brands. The company serves consumers, sellers, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.Looks undervalued
5-year outlook: Not shown because confidence is low: Dividend discount model disagrees strongly.
Other models: USD 607.89–636.86 (median 627.69). The recommended value is in line with them.
Why: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Details and the full model are below.
Market price below modeled range
Earnings-based DCF using Fiscal year 2025 net income, of which 70% is treated as distributable after reinvestment, with no extra debt or cash adjustment because net income is already after interest. Used because free cash flow or dividends do not give a usable base. Base assumptions are 9.43% growth, 2.4% terminal growth, and 9.6% discount; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 9.43%, discount rate 9.60%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 9.4% (sector default 5.4%, own revenue history 10.9%, analyst revenue consensus 10.7%).
Analyst consensus expects revenue growth of 10.7% a year; the growth assumption used is 9.4%.
Adjust assumptions
Why this model: Dividends are small or missing, and cash-flow models do not suit financials, so value is based on reinvestment-adjusted earnings.
Compare models- Recommended: Earnings-based DCF — USD 571.13 (+38.0%)
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EPS-based Gordon proxy
— USD 607.89 (+46.8%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 860.63 (+107.9%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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FCFF (steady state)
— USD 636.86 (+53.8%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/EBITDA (12x)
— USD 627.69 (+51.6%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 853.26 (+106.1%)
Not used: Cash-flow models do not suit banks and insurers, whose cash flow is mostly funding and deposits.
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EV/Sales (Rule of 40)
— USD 1218.27 (+194.3%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 422.35 | 2.0% |
| Base USD 571.13 | 27.5% |
| Bull USD 838.31 | 50.6% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 414.00 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.6%).
Compare: the market implies 1.8% a year, this model assumes 9.4%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Earnings-based DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.6% | 8.6% | 9.6% | 10.6% | 11.6% |
|---|---|---|---|---|---|
| 5.4% | 672.91 | 563.12 | 483.86 | 423.97 | 377.13 |
| 7.4% | 733.43 | 612.93 | 525.97 | 460.28 | 408.92 |
| 9.4% | 798.42 | 666.39 | 571.13 | 499.19 | 442.97 |
| 11.4% | 868.13 | 723.69 | 619.51 | 540.86 | 479.40 |
| 13.4% | 942.80 | 785.04 | 671.28 | 585.42 | 518.35 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 100 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +10.1% a year | 20 / 20 |
| Balance sheet | net debt 0.4x EBITDA | 20 / 20 |
| Margins | EBITDA margin 64% | 20 / 20 |
Peers in Financials
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| V (this company) | USD 414.00 | 34.6% | 8.7 | – | 0.2% | 100 |
| PSH.L Pershing Square Holdings, Ltd. | GBP 38.44 | 68.5% | 3.7 | 0.6 | 1.3% | 76 |
| LRE.L Lancashire Holdings Limited | GBP 6.88 | 45.6% | 7.1 | 1.6 | 3.3% | 76 |
| ACA.PA Credit Agricole S.A. | EUR 15.73 | 36.6% | 6.7 | 0.7 | 7.0% | 78 |
| PRU.L Prudential plc | GBP 9.24 | 34.2% | 8.0 | 1.6 | 1.9% | 78 |
| AGS.BR ageas SA/NV | EUR 76.95 | 33.0% | 8.1 | 1.5 | 5.0% | 76 |
| NWG.L NatWest Group plc | GBP 5.86 | 30.3% | 8.2 | 1.3 | 5.0% | 88 |
| ACGL Arch Capital Group | USD 108.49 | 30.3% | 8.5 | 1.6 | 0.1% | 100 |
| SYF Synchrony Financial | USD 73.92 | 30.0% | 7.2 | 1.4 | 2.1% | 100 |
| Peer median | 7.6 | 1.5 | ||||
Dividends
Paid in the last 12 months: USD 2.68 per share · yield 0.65% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 2.010 |
| 2025 | 2.440 |
| 2024 | 2.150 |
| 2023 | 1.870 |
| 2022 | 1.575 |
| 2021 | 1.335 |
Annual financial statement
Saved annual report · Fiscal year 2025 · SEC EDGAR annual filings · period ended 30 Sep 2025
| Revenue | USD 40,000,000,000 |
|---|---|
| EBITDA | USD 25,214,000,000 |
| EBIT | USD 23,994,000,000 |
| Net income | USD 20,058,000,000 |
| Free cash flow | USD 21,577,000,000 |
| Capital expenditures | USD -1,482,000,000 |
| Debt | USD 25,171,000,000 |
| Cash | USD 17,164,000,000 |
| Working capital | USD 2,718,000,000 |
| Shares outstanding | 469,280,842 |
| Reported dividends per share | USD 0.5900 |