Visa Inc. Class A
🇺🇸 V · NYSE/NASDAQ · US92826C8394
Bank
USD 325.75 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
28.4
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: 325.75 ÷ 11.46 = 28.4
TTM period through: 2026-03-31
Forward P/E (estimated): 24.5
Based on analyst estimates
Reference: Provider P/E (Trailing): 28.1
Yield (Fwd)
0.82%
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): 0.81%
Div. Growth (5Y CAGR)
14.4%
Growth Streak
9 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
0.4x
Latest quarter: 1.3x
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: 2026-03-31
Latest quarter (2026-03-31): 1.3x
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)
23.4%
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): 21.9%
Cash Flow Payout (TTM): 21.4%
FCF Coverage (TTM): 4.34x
ROE
60.4%
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
21.7x
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 0.81% dividend yield and a stretched P/E of 28.43, it represents a complete strategy mismatch for conservative, income-focused dividend portfolios. Not recommended for new positions given these parameters, as the valuation offers no margin of safety and better opportunities exist for current yield.
Sector Context
Visa operates an essential global digital payments network, connecting consumers, merchants, and financial institutions like an indispensable digital toll road. While it possesses a virtually unassailable competitive moat and incredible cash generation, its low dividend yield and high growth multiples make it fundamentally unsuited for strategies requiring significant current income.
📊 Strategy Analysis
- • Operates a world-class digital payments monopoly with an exceptional ROE of 60.35% and an EBITDA margin of 65.66%.
- • Maintains a pristine balance sheet with a Net Debt/EBITDA of just 0.41x, indicating negligible leverage risk.
- • Generates massive free cash flow of $2.62B with a highly conservative payout ratio of 20.90%, allowing for continuous dividend growth.
⚠ What to Watch
- • Severe strategy mismatch: The 0.81% dividend yield falls completely short of the >3% minimum requirement for current income generation.
- • Valuation multiples remain highly elevated, with a P/E of 28.43 far exceeding the strategy's target 8-15x value range.
- • Current market pricing of $325.75 sits well above the strategy's calculated monopoly fair value upper bound of $206.24, offering no margin of safety.
📊 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: 2026-05-16
Disclaimer: This information is for educational purposes only. Not financial advice.