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 Undervalued zone, suggesting that its current forward PE ratio of 25.74 is considered Undervalued compared with the five-year average of 28.13. The fair price of Visa Inc (V) is between 331.16 to 410.67 according to relative valuation methord. Compared to the current price of 325.45 USD , Visa Inc is Undervalued By 1.72%.
Relative Value
Fair Zone
331.16-410.67
Current Price：325.45
1.72%
Undervalued
25.54
PE
1Y
3Y
5Y
Trailing
Forward
20.41
EV/EBITDA
Visa Inc. (V) has a current EV/EBITDA of 20.41. The 5-year average EV/EBITDA is 20.81. The thresholds are as follows: Strongly Undervalued below 15.76, Undervalued between 15.76 and 18.29, Fairly Valued between 23.34 and 18.29, Overvalued between 23.34 and 25.86, and Strongly Overvalued above 25.86. The current Forward EV/EBITDA of 20.41 falls within the Historic Trend Line -Fairly Valued range.
21.23
EV/EBIT
Visa Inc. (V) has a current EV/EBIT of 21.23. The 5-year average EV/EBIT is 21.73. The thresholds are as follows: Strongly Undervalued below 16.36, Undervalued between 16.36 and 19.05, Fairly Valued between 24.42 and 19.05, Overvalued between 24.42 and 27.10, and Strongly Overvalued above 27.10. The current Forward EV/EBIT of 21.23 falls within the Historic Trend Line -Fairly Valued range.
14.19
PS
Visa Inc. (V) has a current PS of 14.19. The 5-year average PS is 14.45. The thresholds are as follows: Strongly Undervalued below 10.98, Undervalued between 10.98 and 12.72, Fairly Valued between 16.19 and 12.72, Overvalued between 16.19 and 17.92, and Strongly Overvalued above 17.92. The current Forward PS of 14.19 falls within the Historic Trend Line -Fairly Valued range.
22.92
P/OCF
Visa Inc. (V) has a current P/OCF of 22.92. The 5-year average P/OCF is 23.60. The thresholds are as follows: Strongly Undervalued below 18.21, Undervalued between 18.21 and 20.91, Fairly Valued between 26.30 and 20.91, Overvalued between 26.30 and 28.99, and Strongly Overvalued above 28.99. The current Forward P/OCF of 22.92 falls within the Historic Trend Line -Fairly Valued range.
24.99
P/FCF
Visa Inc. (V) has a current P/FCF of 24.99. The 5-year average P/FCF is 25.75. The thresholds are as follows: Strongly Undervalued below 19.42, Undervalued between 19.42 and 22.59, Fairly Valued between 28.92 and 22.59, Overvalued between 28.92 and 32.08, and Strongly Overvalued above 32.08. The current Forward P/FCF of 24.99 falls within the Historic Trend Line -Fairly Valued range.
Visa Inc (V) has a current Price-to-Book (P/B) ratio of 17.01. Compared to its 3-year average P/B ratio of 14.39 , the current P/B ratio is approximately 18.15% higher. Relative to its 5-year average P/B ratio of 13.62, the current P/B ratio is about 24.83% higher. Visa Inc (V) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.68%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.53% , the current FCF yield is about -100.00% lower.
16.88
P/B
Median3y
14.39
Median5y
13.62
3.42
FCF Yield
Median3y
3.68
Median5y
3.53
Competitors Valuation Multiple
The average P/S ratio for V's competitors is , providing a benchmark for relative valuation. Visa Inc Corp (V) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 11.51%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of V increased by 3.50% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 9.62B to 10.72B.
The secondary factor is the P/E Change, contributed 6.17%to the performance.
Overall, the performance of V in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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