V PE Ratio & Valuation,Is V Overvalued

V Relative Valuation

V's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, V is overvalued; if below, it's undervalued.

Historical Valuation

Visa Inc (V) is now in the Fair zone, suggesting that its current forward PE ratio of 27.18 is considered Fairly compared with the five-year average of 28.09. The fair price of Visa Inc (V) is between 333.81 to 413.23 according to relative valuation methord.

Relative Value

Fair Zone

333.81-413.23

Current Price：346.89

Fair

27.18

21.53

EV/EBITDA

Visa Inc. (V) has a current EV/EBITDA of 21.53. The 5-year average EV/EBITDA is 20.79. The thresholds are as follows: Strongly Undervalued below 15.78, Undervalued between 15.78 and 18.29, Fairly Valued between 23.29 and 18.29, Overvalued between 23.29 and 25.80, and Strongly Overvalued above 25.80. The current Forward EV/EBITDA of 21.53 falls within the Historic Trend Line -Fairly Valued range.

22.38

EV/EBIT

Visa Inc. (V) has a current EV/EBIT of 22.38. The 5-year average EV/EBIT is 21.71. The thresholds are as follows: Strongly Undervalued below 16.38, Undervalued between 16.38 and 19.04, Fairly Valued between 24.37 and 19.04, Overvalued between 24.37 and 27.03, and Strongly Overvalued above 27.03. The current Forward EV/EBIT of 22.38 falls within the Historic Trend Line -Fairly Valued range.

14.96

Visa Inc. (V) has a current PS of 14.96. The 5-year average PS is 14.44. The thresholds are as follows: Strongly Undervalued below 10.99, Undervalued between 10.99 and 12.72, Fairly Valued between 16.16 and 12.72, Overvalued between 16.16 and 17.89, and Strongly Overvalued above 17.89. The current Forward PS of 14.96 falls within the Historic Trend Line -Fairly Valued range.

24.17

P/OCF

Visa Inc. (V) has a current P/OCF of 24.17. The 5-year average P/OCF is 23.58. The thresholds are as follows: Strongly Undervalued below 18.23, Undervalued between 18.23 and 20.90, Fairly Valued between 26.25 and 20.90, Overvalued between 26.25 and 28.93, and Strongly Overvalued above 28.93. The current Forward P/OCF of 24.17 falls within the Historic Trend Line -Fairly Valued range.

26.35

P/FCF

Visa Inc. (V) has a current P/FCF of 26.35. The 5-year average P/FCF is 25.73. The thresholds are as follows: Strongly Undervalued below 19.43, Undervalued between 19.43 and 22.58, Fairly Valued between 28.88 and 22.58, Overvalued between 28.88 and 32.03, and Strongly Overvalued above 32.03. The current Forward P/FCF of 26.35 falls within the Historic Trend Line -Fairly Valued range.

Visa Inc (V) has a current Price-to-Book (P/B) ratio of 17.95. Compared to its 3-year average P/B ratio of 14.44 , the current P/B ratio is approximately 24.26% higher. Relative to its 5-year average P/B ratio of 13.64, the current P/B ratio is about 31.55% higher. Visa Inc (V) has a Forward Free Cash Flow (FCF) yield of approximately 3.24%. Compared to its 3-year average FCF yield of 3.67%, the current FCF yield is approximately -11.51% lower. Relative to its 5-year average FCF yield of 3.54% , the current FCF yield is about -8.34% lower.

17.95

P/B

Median3y

14.44

Median5y

13.64

3.24

FCF Yield

Median3y

3.67

Median5y

3.54

Competitors Valuation Multiple

The average P/S ratio for V's competitors is 8.26, providing a benchmark for relative valuation. Visa Inc Corp (V) exhibits a P/S ratio of 14.96, which is 81.17% above the industry average. Given its robust revenue growth of 11.51%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of V increased by 10.06% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 30.24 to 34.09.

The secondary factor is the Revenue Growth, contributed 11.51%to the performance.

Overall, the performance of V in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.51%

9.62B → 10.72B

Revenue Growth

-14.18%

55.30 → 47.46

Margin Expansion

12.73%

30.24 → 34.09

P/E Change

10.06%

316.04 → 347.83

Mkt Cap Growth

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Frequently Asked Questions

Is Visa Inc (V) currently overvalued or undervalued?

What is Visa Inc (V) fair value?

V's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Visa Inc (V) is between 333.81 to 413.23 according to relative valuation methord.

How does V's valuation metrics compare to the industry average?

What is the current P/B ratio for Visa Inc (V) as of Dec 15 2025?

As of Dec 15 2025, Visa Inc (V) has a P/B ratio of 17.95. This indicates that the market values V at 17.95 times its book value.

What is the current FCF Yield for Visa Inc (V) as of Dec 15 2025?

As of Dec 15 2025, Visa Inc (V) has a FCF Yield of 3.24%. This means that for every dollar of Visa Inc’s market capitalization, the company generates 3.24 cents in free cash flow.

What is the current Forward P/E ratio for Visa Inc (V) as of Dec 15 2025?

As of Dec 15 2025, Visa Inc (V) has a Forward P/E ratio of 27.18. This means the market is willing to pay $27.18 for every dollar of Visa Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Visa Inc (V) as of Dec 15 2025?

As of Dec 15 2025, Visa Inc (V) has a Forward P/S ratio of 14.96. This means the market is valuing V at $14.96 for every dollar of expected revenue over the next 12 months.

V Valuation