Visa Inc. (V) Fair Value & PE Analysis
Financial - Credit Services · NYSE
Current Price
$322.39
PE Ratio (TTM)
27.7x
Intrinsic Value
$393.44
+18.1% margin of safety
What Is Visa Inc.'s Fair Value?
As of 2026-06-12, applying a 28.0x earnings multiple to Visa Inc.'s (V) earnings per share of $11.62 yields a fair value estimate of $393.44 per share, versus a market price of $322.39.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $328.44 to $467.26. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · V intrinsic value (DCF view)
Is Visa Inc. (V) Overvalued?
At $322.39, V trades about 18.1% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough for us to call it cheap outright.
COMPETITIVE MOAT
↑Network Effects
Visa benefits from a powerful two-sided network. More merchants accept Visa because consumers have Visa cards, and more consumers have Visa cards because merchants accept them.
↑Brand Recognition
Visa is a globally recognized and trusted brand. This strong brand equity fosters consumer preference and merchant adoption, creating a significant barrier to entry for competitors.
↑Scale and Infrastructure
Visa's massive scale in payment volume and cards in use demonstrates its entrenched infrastructure. This operational efficiency and reach are difficult for new entrants to replicate.
INVESTMENT RISKS
↓Pay-by-Bank Competition
The rise of pay-by-bank solutions, accelerated by pandemic trends, offers an alternative to card networks. This could erode Visa's transaction volume and fees if adoption grows significantly.
↓Regulatory Scrutiny
As a dominant player, Visa faces ongoing regulatory scrutiny regarding interchange fees and market practices. Adverse regulatory changes could impact profitability and business models.
↓Technological Disruption
Emerging payment technologies, including stablecoins and new digital wallets, could challenge Visa's established position. Failure to adapt or integrate these innovations poses a risk.
Base case
V base case PE valuation
Intrinsic Value
$393.44
Margin of safety
+18.1%
Expected annual return
+4.1%
Base case assumptions: 10.6% annual earnings growth, 28x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the V PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Visa Inc. respond.
Open PE Calculator for VCompany Overview
Visa Inc. functions globally as a leading technology company dedicated to payments. Its primary role is to enable the secure and efficient digital transfer of funds among a wide array of participants, including individual consumers, retail businesses, banking institutions, corporations, strategic partners, and governmental bodies. At the heart of its operations is VisaNet, a highly sophisticated transaction processing network that handles the critical functions of authorizing, clearing, and settling all payment transactions. In addition to this core infrastructure, the company also provides a variety of card products, innovative digital platforms, and an extensive range of supplementary value-added services. These offerings are distributed under several widely recognized brands, including Visa, Visa Electron, Interlink, VPAY, and PLUS. Demonstrating its commitment to enhancing user experience, Visa Inc. has established a key strategic partnership with Ooredoo in Qatar, focused on improving payment solutions for Visa cardholders and Ooredoo customers within the country. The company was established in 1958 and its corporate headquarters are situated in San Francisco, California.
Financial Metrics — V PE Stock Valuation Data
PE Ratio (TTM)
27.7x
PEG Ratio
1.81
Earnings Yield
3.60%
ROE (TTM)
58.9%
Revenue/Share (TTM)
$22.49
Dividend Yield
0.81%
Debt/Equity
0.67x
Frequently Asked Questions
What is the PE ratio of V?
The trailing twelve-month PE ratio of V reflects how much investors pay per dollar of Visa Inc.'s earnings. This metric is most useful when compared to Financial - Credit Services peers and the company's own historical range.
Is V overvalued based on PE ratio?
V's PE of 27.7x combined with a PEG ratio of 1.81 provides a growth-adjusted perspective. A PEG near 1.0 suggests the PE ratio is reasonably justified by the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Financial - Credit Services, a DCF analysis may be more appropriate.
How do I value V stock using PE ratio?
To value Visa Inc. using PE: (1) Compare the current PE (27.7x) against the Financial - Credit Services median to assess relative pricing, (2) check the PEG ratio (1.81) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of V?
V's PEG ratio is 1.81, calculated by dividing the PE ratio (27.7x) by the expected earnings growth rate. A PEG near 1.0 suggests the stock is fairly priced relative to growth. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for V stock valuation?
PE ratio gives a quick relative read — how V is priced versus Financial - Credit Services peers. DCF provides an absolute value based on projected free cash flows. For V, with a strong ROE of 58.9%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See V DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value V with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.