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Visa Inc. Class A
🇺🇸 V · NYSE/NASDAQ
Bank
Price at analysis: USD 401.18 Current price: USD 395.59 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
34.4
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: 401.18 ÷ 11.68 = 34.4
TTM period through: 2026-06-30
Forward P/E (estimated): 24.0
Based on analyst estimates
Reference: Provider P/E (Trailing): 34.0
Net Debt/EBITDA (TTM)
0.3x
Latest quarter: 1.4x
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: 2026-06-30
Latest quarter (2026-06-30): 1.4x
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
61.2%
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
23.7x
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)
0.79%
TTM: 0.68%
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): 0.79%
Trailing Yield (TTM, last 12 months): 0.68%
Payout Ratio (Fwd)
22.9%
TTM: 22.1%
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 (Fwd): 22.9%
Payout (TTM): 22.1%
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 | — | 11 Aug 2027 | — | USD | 0.67 |
| Forecast* | Quarterly | — | 12 May 2027 | — | USD | 0.67 |
| Forecast* | Quarterly | — | 10 Feb 2027 | — | USD | 0.67 |
| Forecast* | Quarterly | — | 12 Nov 2026 | — | USD | 0.67 |
| Paid | Quarterly | 28 Jul 2026 | 11 Aug 2026 | 01 Sep 2026 | USD | 0.67 |
| 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Visa possesses an exceptional, highly profitable business model fortified by an irreplaceable global network and a pristine balance sheet. However, the negligible 0.67% forward dividend yield, highly elevated 34.35x P/E multiple, and ongoing structural regulatory threats make it unsuitable for traditional dividend growth strategies. Not recommended for new positions in income-focused portfolios.
Sector Context
Visa operates a globally dominant electronic payments network. While functioning as an essential utility in the financial infrastructure space, its capital allocation strategy heavily prioritizes share repurchases over cash dividends, making it a poor fit for pure DGI portfolios seeking meaningful current yield.
📊 Strategy Analysis
- • Exceptional business moat with a globally dominant payment network, generating an outstanding 61.19% ROE.
- • Pristine balance sheet with a negligible Net Debt/EBITDA of 0.35x, easily absorbing large regulatory and compliance costs.
- • Consistent revenue and earnings compounder, with revenue growing 165% over the past 10 years.
⚠ What to Watch
- • Severe DGI strategy mismatch: the 0.67% forward dividend yield and 20.97% payout ratio reflect a permanent buyback-first capital model (2.75% net buyback yield).
- • Extremely elevated valuation with a trailing P/E of 34.35x, offering no margin of safety for income or value-focused investors.
- • Mounting, non-temporary structural regulatory threats, including the active DOJ antitrust debit monopoly lawsuit and ongoing litigation over merchant interchange fees.
📊 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.
Analysis date: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.