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Visa Inc. Class A
🇺🇸 V · NYSE/NASDAQ · US92826C8394
Bank
USD 356.61 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
31.1
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: 356.61 ÷ 11.46 = 31.1
TTM period through: 2026-03-31
Forward P/E (estimated): 23.4
Based on analyst estimates
Reference: Provider P/E (Trailing): 31.5
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).
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
23.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
0.75%
TTM: 0.74%
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.
Forward Yield (estimated): 0.75%
Trailing Yield (TTM, last 12 months): 0.74%
Payout Ratio (Fwd)
23.4%
TTM: 21.9%
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 (Fwd): 23.4%
Payout (TTM): 21.9%
Cash Flow Payout (TTM): 21.4%
FCF Coverage (TTM): 4.34x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
14.9%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 12 May 2027 | — | USD | 0.67 |
| Forecast* | Quarterly | — | 10 Feb 2027 | — | USD | 0.67 |
| Forecast* | Quarterly | — | 12 Nov 2026 | — | USD | 0.67 |
| Forecast* | Quarterly | — | 12 Aug 2026 | — | USD | 0.59 |
| Paid | Quarterly | 28 Apr 2026 | 12 May 2026 | 01 Jun 2026 | USD | 0.67 |
| Paid | Quarterly | 27 Jan 2026 | 10 Feb 2026 | 02 Mar 2026 | USD | 0.67 |
| Paid | Quarterly | 28 Oct 2025 | 12 Nov 2025 | 01 Dec 2025 | USD | 0.67 |
| Paid | Quarterly | 29 Jul 2025 | 12 Aug 2025 | 02 Sep 2025 | USD | 0.59 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Visa operates a dominant global payments network characterized by exceptional margins, robust growth, and a pristine balance sheet. However, the negligible 0.74% dividend yield, elevated P/E over 31, and mounting structural regulatory threats make this an unsuitable fit for a conservative dividend income strategy. Not recommended for new positions given the severe strategy mismatch and significant valuation premium.
Sector Context
Visa operates an unparalleled global digital payments network that facilitates electronic funds transfers worldwide, primarily through credit and debit cards. While the company boasts immense competitive advantages and utility-like transaction volumes, its negligible dividend yield and elevated valuation multiples make it fundamentally unsuitable for a traditional high-yield dividend value strategy.
📊 Strategy Analysis
- • Exceptional profitability metrics with a 65.6% EBITDA margin, 60.3% ROE, and pristine balance sheet with Net Debt/EBITDA of 0.36x.
- • Outstanding dividend growth history with a 5-year CAGR of 14.9% and 8 consecutive years of raises, easily covered by substantial free cash flow (FCF coverage of 4.34x).
⚠ What to Watch
- • Severe strategy mismatch: The 0.74% dividend yield falls completely short of the minimum >3% requirement for current income generation.
- • Valuation multiples are highly elevated for a value strategy, with a P/E of 31.12 offering no margin of safety.
- • Facing significant structural and regulatory threats to its core business, including an active DOJ antitrust monopolization lawsuit, the Credit Card Competition Act (CCCA), and the ongoing litigation over multi-billion dollar swipe fee settlements.
📊 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: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.