Visa Inc. Class A
🇺🇸 V · NYSE/NASDAQ · US92826C8394
Bank
USD 300.80 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
28.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 300.80 ÷ 10.66 = 28.2
TTM period through: 2025-12-31
Forward P/E (estimated): 23.3
Based on analyst estimates
Reference: Provider P/E (Trailing): 28.2
Yield (Fwd)
0.89%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.84%
Net Debt/EBITDA (TTM)
0.2x
Latest quarter: 0.9x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 0.9x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
25.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 22.9%
Cash Flow Payout (TTM): 19.5%
FCF Coverage (TTM): 4.82x
ROE
53.9%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
21.8x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Visa operates an unmatched global payments network with exceptional margins, a pristine balance sheet, and a dominant competitive moat. However, with a negligible 0.84% dividend yield and a stretched P/E of 28.2x, it represents a complete strategy mismatch for dividend value investors. Not recommended for new positions, as the stock offers insufficient current income and trades well above value thresholds despite recent market dips.
Sector Context
Visa functions as the world's premier digital payment network, facilitating global financial transactions between consumers, merchants, and financial institutions. While fundamentally a financial infrastructure monopoly with impeccable quality, typical dividend strategies require much higher current yields than this hyper-growth compounder provides.
📊 Strategy Analysis
- • Operates an unmatched global payments duopoly with a massive competitive moat and highly recurring revenue.
- • Maintains exceptional profitability with an EBITDA margin of 64.2% and an outstanding ROE of 54.0%.
- • Features a pristine balance sheet with Net Debt/EBITDA of just 0.24x and abundant free cash flow generation.
⚠ What to Watch
- • Severe strategy mismatch: The 0.84% dividend yield falls massively short of the >3% minimum requirement for current income generation.
- • Valuation multiples remain highly elevated with a P/E of 28.2x, offering no margin of safety and far exceeding the target 8-15x value threshold.
- • Current market pricing of $300.80 sits well above the strategy's calculated monopoly fair value upper bound of $191.91.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.