Visa Inc. (V) Fair Value & PE Analysis
Financial - Credit Services · NYSE
Current Price
$368.73
PE Ratio (TTM)
31.3x
Intrinsic Value
$492.29
+25.1% margin of safety
What Is Visa Inc.'s Fair Value?
As of 2026-07-29, applying a 31.0x earnings multiple to Visa Inc.'s (V) earnings per share of $11.81 yields a fair value estimate of $492.29 per share, versus a market price of $368.73.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $414.66 to $580.04. 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 the PE model works · Recalculate in PE mode · V intrinsic value (DCF view)
Is Visa Inc. (V) Overvalued?
At $368.73, V trades about 25.1% below its PE-based fair value estimate, a modest discount to its earnings power, though not enough to call it cheap outright.
COMPETITIVE MOAT
↑Dominant Network Effects
Visa's vast global network of consumers, merchants, and financial institutions creates a powerful two-sided network effect. This makes it incredibly difficult for new entrants to replicate its reach and utility.
↑High Switching Costs
For consumers and merchants, switching from Visa involves significant inconvenience and potential loss of access to a widely accepted payment system. This inertia locks in existing users.
↑Brand Recognition and Trust
Visa is a globally recognized and trusted brand in payment processing. This established reputation fosters confidence among users, further solidifying its market position.
INVESTMENT RISKS
↓Technological Disruption
Rapid advancements in payment technology, such as blockchain or new peer-to-peer systems, could potentially disintermediate Visa's traditional role in transactions.
↓Geopolitical and Economic Instability
Global economic downturns or geopolitical conflicts can reduce consumer spending and cross-border transactions, directly impacting Visa's transaction volumes and revenue.
↓Competition from Big Tech
Large technology companies with vast user bases and integrated payment solutions pose a competitive threat. They can leverage their ecosystems to offer compelling alternatives.
Base case
V base case PE valuation
Intrinsic Value
$492.29
Margin of safety
+25.1%
Expected annual return
+6.0%
Base case assumptions: 13.5% annual earnings growth, 31x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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)
31.3x
PEG Ratio
2.11
Earnings Yield
3.20%
ROE (TTM)
61.3%
Revenue/Share (TTM)
$23.25
Dividend Yield
0.71%
Debt/Equity
0.68x
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 31.3x combined with a PEG ratio of 2.11 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to 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 (31.3x) against the Financial - Credit Services median to assess relative pricing, (2) check the PEG ratio (2.11) 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 2.11, calculated by dividing the PE ratio (31.3x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. 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 61.3%, 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.