2.13%
8.55%
18.35%
29.13%
25.54%
51.68%
72.41%
AI Spotlight on V
Company Description
Visa Inc.operates as a payments technology company worldwide.The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.
It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions.In addition, the company offers card products, platforms, and value-added services.It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands.
Visa Inc.has a strategic agreement with Ooredoo to provide an enhanced payment experience for Visa cardholders and Ooredoo customers in Qatar.Visa Inc.
was founded in 1958 and is headquartered in San Francisco, California.
Market Data
| Last Price | 343.05 |
| Change Percentage | 2.13% |
| Open | 339.51 |
| Previous Close | 335.88 |
| Market Cap ( Millions) | 672733 |
| Volume | 6752947 |
| Year High | 344.43 |
| Year Low | 252.7 |
| M A 50 | 315.73 |
| M A 200 | 285.4 |
Financial Ratios
| FCF Yield | 3.03% |
| Dividend Yield | 0.63% |
| ROE | 50.68% |
| Debt / Equity | 53.82% |
| Net Debt / EBIDTA | 32.43% |
| Price To Book | 14.36 |
| Price Earnings Ratio | 27.54 |
| Price To FCF | 32.98 |
| Price To sales | 18.28 |
| EV / EBITDA | 26.79 |
News
- 10:22 - Mastercard Vs. Visa: Buy, Sell Or Hold?
- 02:38 - Visa Tops 4.7 Billion Credentials, Logs 44% Growth in Tokens YOY
- 02:10 - Visa Inc. (V) Q1 2025 Earnings Call Transcript
- 01:04 - Visa reports Q1 beat, stock climbs in overtime
- 00:16 - Markets Modestly in the Green Ahead of Earnings for AAPL, INTC, V & More
- 00:01 - Here's What Key Metrics Tell Us About Visa (V) Q1 Earnings
- Jan -30 - X Reveals New Partnership With Visa for Digital Payments. What We Know
- Jan -30 - Visa (V) Tops Q1 Earnings and Revenue Estimates
- Jan -30 - Visa gives rosy guidance as spending growth improves
- Jan -30 - Visa Profit Tops Forecasts as Consumer Spending Holds Up
- Jan -30 - Visa Fiscal First Quarter 2025 Financial Results
- Jan -30 - Visa Likely To Report Higher Q1 Earnings; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
- Jan -30 - Visa to Use ServiceNow Dispute Management Tools
- Jan -29 - Visa Foundation Supports Los Angeles Wildfire Recovery Efforts
- Jan -29 - ServiceNow Expands Strategic Alliance With Visa
- Jan -29 - Gear Up for Visa (V) Q1 Earnings: Wall Street Estimates for Key Metrics
- Jan -29 - Options Traders Eye Visa Stock on X Partnership
- Jan -29 - Visa & Elon Musk's X: A Power Play in the Race for Fintech Dominance?
- Jan -29 - Elon Musk's X partners with Visa to move into financial services—and no, it's not for crypto (yet)
- Jan -28 - Elon Musk's X partners with Visa on payment service in an effort to become an 'everything app'
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Data Processing
Expected Growth : 8 %
What the company do ?
Data Processing from Visa Inc. enables secure and efficient transaction processing, providing merchants with fast and reliable payment solutions.
Why we expect these perspectives ?
Visa's 8% growth in Data Processing is driven by increasing adoption of digital payments, growing e-commerce transactions, and expanding partnerships with fintech companies. Additionally, investments in cloud-based infrastructure and advanced analytics capabilities have improved processing efficiency and reduced costs, further fueling growth.
Segment n°2 -> Service
Expected Growth : 7 %
What the company do ?
Visa Token Service is a digital tokenization service that replaces sensitive payment information with a unique token, enabling secure and convenient payments.
Why we expect these perspectives ?
Visa's 7% growth is driven by increasing digital payments adoption, cross-border transactions, and expanding merchant acceptance. Additionally, growth in e-commerce, mobile payments, and contactless transactions contribute to the company's growth. Furthermore, strategic partnerships, investments in technology, and geographic expansion also support Visa's growth momentum.
Segment n°3 -> Client Incentives
Expected Growth : 10 %
What the company do ?
Client Incentives from Visa Inc. offer rewards and benefits to merchants who meet specific transaction volume or other business goals, driving loyalty and growth.
Why we expect these perspectives ?
Visa Inc.'s 10% growth in Client Incentives is driven by increasing adoption of digital payments, expansion into new markets, and strategic partnerships. Additionally, investments in loyalty and rewards programs, as well as enhanced customer experiences, contribute to the growth. Furthermore, the rise of e-commerce and online transactions also fuels the demand for Visa's incentive programs.
Segment n°4 -> International Transaction
Expected Growth : 11 %
What the company do ?
International Transaction from Visa Inc. allows cardholders to make cross-border transactions, facilitating global commerce and enabling businesses to expand globally.
Why we expect these perspectives ?
Visa's 11% growth in international transactions is driven by increasing cross-border e-commerce, travel, and digital payments adoption. Strong demand from emerging markets, expansion of Visa's network, and strategic partnerships with fintechs and banks also contribute to this growth. Additionally, the rise of contactless payments and tokenization further boost international transaction volumes.
Segment n°5 -> Other
Expected Growth : 9 %
What the company do ?
Other from Visa Inc. refers to the company's non-operating income, including gains on sale of properties, investments, and other miscellaneous income.
Why we expect these perspectives ?
Visa's 'Other' segment growth is driven by increasing cross-border transactions, expansion into new markets, and growing demand for digital payment solutions. Additionally, strategic partnerships, investments in fintech, and the rise of contactless payments contribute to this growth.
Visa Inc. Products
| Product Range | What is it ? |
|---|---|
| VisaNet | A payment processing network that enables secure, reliable, and efficient transactions between merchants, acquirers, and issuers. |
| Visa Direct | A push payments platform that enables fast, convenient, and secure transactions between businesses and individuals. |
| Visa Token Service | A tokenization platform that replaces sensitive payment information with a unique token, enhancing security and convenience. |
| Visa Checkout | A digital payment service that simplifies online checkout, reducing friction and increasing conversion rates. |
| Visa Business Solutions | A suite of payment solutions designed to help businesses optimize their payment processes, reduce costs, and improve efficiency. |
| Visa Analytics Platform | A data analytics platform that provides insights and intelligence to help businesses optimize their payment strategies. |
| Visa Risk Manager | A risk management platform that helps prevent fraud, reduce risk, and improve the overall payment experience. |
Visa Inc.'s Porter Forces
Threat Of Substitutes
Visa's business model is highly dependent on its network effects, making it difficult for substitutes to emerge. Additionally, the company's strong brand recognition and partnerships with financial institutions further reduce the threat of substitutes.
Bargaining Power Of Customers
While customers have some bargaining power due to the availability of alternative payment methods, Visa's strong brand and widespread acceptance reduce the bargaining power of customers. Furthermore, the company's partnerships with financial institutions and merchants also mitigate this threat.
Bargaining Power Of Suppliers
Visa's suppliers, primarily financial institutions and merchants, have limited bargaining power due to the company's dominant market position and strong brand recognition. This reduces the threat of suppliers negotiating better terms or switching to alternative payment processors.
Threat Of New Entrants
While new entrants may emerge in the payment processing industry, Visa's strong brand, network effects, and partnerships with financial institutions and merchants create significant barriers to entry. However, the rise of fintech companies and digital payment methods poses a moderate threat to Visa's market share.
Intensity Of Rivalry
The payment processing industry is highly competitive, with companies like Mastercard, American Express, and PayPal posing significant threats to Visa's market share. The intensity of rivalry is further increased by the emergence of fintech companies and digital payment methods.
Strength
Capital Structure
| Value | |
|---|---|
| Debt Weight | 34.69% |
| Debt Cost | 3.95% |
| Equity Weight | 65.31% |
| Equity Cost | 8.68% |
| WACC | 7.04% |
| Leverage | 53.10% |
Visa Inc. : Quality Control
Visa Inc. passed 7 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| SYF | Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer … |
| COF | Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and … |
| AXP | American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide. The company operates through three segments: Global Consumer Services Group, Global Commercial … |
| DFS | Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The … |
| PYPL | PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Synchrony
A-Score
1-Year Total Return ->
🥈
Capital One
A-Score
1-Year Total Return ->
🥉
Discover
A-Score
1-Year Total Return ->
4
Amex
A-Score
1-Year Total Return ->
5
Visa
A-Score
1-Year Total Return ->
6
