One-glance verdict
Undervalued
$450.33 our estimate vs market $360.66
Wall Street consensus: $419.36 (-6.9% lower than our fair-value estimate)
20% below our estimate, below the bear case
Fundamentals snapshot
Visa Inc.
V · NYQ · Financial Services · Credit Services
Current price
$360.66
52-week range
$293.89 - $385.57
Market cap
$677.09B
Balance sheet
Healthy
45.09x Strong cushion
Net debt $10.07B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 7.6% last year.
- Reward Returns 61.2% on equity, ahead of 50% of its peers.
- Risk Net debt grew 57.2% over 3 years.
- Risk Stock trades 6.7% above its 5-year average P/E.
What this company does
Visa Inc.
Visa operates a global payments network, making money by taking a small slice of each transaction when people use a Visa debit or credit card issued by their bank. This means the company benefits as more people worldwide switch from cash to cards, without carrying the risk of lending money to consumers itself.
How the company got here
Visa's story began in 1958 when Bank of America launched the first consumer credit card program, called BankAmericard, in Fresno, California. This new "revolving credit" feature was a novel concept when most people paid with cash. In 1976, the company rebranded to "Visa," a name that sounds the same in every language, reflecting its global ambitions. A major turning point came in 2008 when Visa went public in one of the largest stock offerings in history, changing its structure from a bank-owned cooperative to the publicly traded company it is today.
What it actually does
Visa is a payment technology company that connects consumers, businesses, banks, and governments in over 200 countries. It’s a common misconception that Visa issues credit cards or lends money; it doesn't. Instead, it operates a massive electronic payments network, often called VisaNet, that makes it possible for your bank to talk to a merchant's bank to authorize, clear, and settle your purchase in seconds. Think of Visa as the silent middleman that provides the secure and reliable infrastructure for swiping, tapping, or clicking to pay with a Visa-branded card issued by your bank.
Service Revenues
This is a major part of Visa's business and comes from charging fees based on the total dollar amount of payments made with Visa-branded cards and products. The customers here are the financial institutions (the banks that issue the cards to you) and the merchant acquirers (the banks that process payments for stores). Essentially, the more money people spend using Visa cards, the more revenue Visa generates from these service fees. This segment is a significant contributor to Visa's overall income.
Data Processing Revenues
This is the largest single slice of Visa's income, making up about half of its revenue. Visa charges fees for the authorization, clearing, settlement, and other processing services that happen every time you use your card. These fees are for the use of Visa's secure network, VisaNet, which connects the cardholder's bank to the merchant's bank to make the transaction happen. So, for every single swipe, tap, or online purchase, Visa earns a small fee for processing the transaction.
International Transaction Revenues
This segment generates income from transactions where the cardholder's bank is in a different country than the merchant's bank. These are often called cross-border transactions and include things like currency conversion services. When you travel abroad and use your Visa card or buy something from an international website, Visa earns a fee for handling the complexities of the transaction. This is a substantial part of Visa's business, accounting for more than a third of its revenue.
Other Revenues
This is a smaller but fast-growing part of Visa's business that includes various value-added services. These are services sold to clients like banks and merchants that go beyond basic transaction processing. Examples include fraud management solutions, data analytics, consulting services, and access to its brand and technology through licensing fees. This segment also includes revenue from Visa Direct, a platform that allows for real-time money transfers between people and businesses.
What management is betting on now
Visa's leadership is focused on expanding beyond just consumer card payments into what it calls "new flows" and "value-added services." This means pushing into business-to-business payments and other large money transfers that are still often handled by slower, manual processes. The company is also heavily investing in its value-added services, such as advanced fraud prevention using AI and data consulting, to become more deeply embedded with its clients. A key part of this strategy is building a "network of networks," using its existing global system to enable all sorts of money movement, not just traditional card purchases.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$4.73B
FY2024 Q4
$6.36B
FY2025 Q1
$5.05B
FY2025 Q2
$4.37B
FY2025 Q3
$6.31B
FY2025 Q4
$5.85B
FY2026 Q1
$6.40B
FY2026 Q2
$2.62B
Revenue
$11.23B
Net income
$6.02B
Diluted EPS
—
Operating cash flow
$3.01B
Free cash flow
$2.62B
Fetching…
Sources
Revenue
$10.90B
Net income
$5.85B
Diluted EPS
—
Operating cash flow
$6.78B
Free cash flow
$6.40B
Fetching…
Sources
Revenue
$10.72B
Net income
$5.09B
Diluted EPS
—
Operating cash flow
$6.24B
Free cash flow
$5.85B
Fetching…
Sources
Revenue
$10.17B
Net income
$5.27B
Diluted EPS
—
Operating cash flow
$6.73B
Free cash flow
$6.31B
Fetching…
Sources
Revenue
$9.59B
Net income
$4.58B
Diluted EPS
—
Operating cash flow
$4.70B
Free cash flow
$4.37B
Fetching…
Sources
Revenue
$9.51B
Net income
$5.12B
Diluted EPS
—
Operating cash flow
$5.40B
Free cash flow
$5.05B
Fetching…
Sources
Revenue
$9.62B
Net income
$5.32B
Diluted EPS
—
Operating cash flow
$6.66B
Free cash flow
$6.36B
Fetching…
Sources
Revenue
$8.90B
Net income
$4.87B
Diluted EPS
—
Operating cash flow
$5.13B
Free cash flow
$4.73B
Fetching…
Sources
Is it cheap or expensive?
Fair value $450.33 vs current price $360.66
Wall Street consensus is the average analyst price target: $419.36 (-6.9% lower than our fair-value estimate).
Our most-likely fair value is $450.33 a share — about 24.9% above today's price of $360.66, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $10.1B. Interest coverage 45.1x.
Net debt
$10.07B
Interest coverage
45.09x
Visa Inc.'s profit covers its interest bill about 45.1 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
V
BASELINE
Visa Inc.
Total debt $23.86B Interest coverage 45.09x This is the baseline the peer rows are being compared against.
Total debt $24.64B Interest coverage 27.03x -40% vs V Carries about 1.7x less debt cushion than V.
Total debt $14.22B Interest coverage 14.50x -68% vs V Carries about 3.1x less debt cushion than V.
What you should know
The case for and against V
3 Rewards
3 Risks
Rewards
-
Revenue grew 7.6% last year.
-
Returns 61.2% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Net debt grew 57.2% over 3 years.
-
Stock trades 6.7% above its 5-year average P/E.
-
Operating margin compressed from 67.1% to 66.1% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.64x
Forward P/E
24.04x
P/B
19.11x
P/S
15.22x
EV/EBITDA
21.61x
PEG ratio
1.63x
Profitability
How much profit each dollar creates
Gross margin
97.7%
Operating margin
66.1%
Net margin
50.8%
ROE
61.2%
ROA
19.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.68x
Current ratio
0.98x
Quick ratio
0.63x
Total debt
$23.86B
Total cash
$13.79B
Growth
How the business has been compounding
Revenue TTM
$43.03B
Revenue 5Y CAGR
13.5%
EPS TTM
11.77
EPS 5Y CAGR
13.4%
Cash flow
How much cash the business throws off
Operating CF TTM
$22.76B
Free CF TTM
$21.58B
FCF margin
50.1%
Dividend
Shareholder payout
Yield
0.7%
Payout ratio
22.1%
Last ex-div date
2026-08-11