US · NYSE · V
Visa (V) stock analysis: valuation and financials
Consumer Discretionary · Business Services
$391.46 +1.6% Price as of Oct 12, 2026
Wide-moat network, 49% FCF margin, 0.4x net leverage, 14.4% TTM growth; but $391.46 already discounts 12.5% ten-year FCF growth, base case ~14% downside. Neutral.
- Market cap
- $699.4B
- P/E
- 31.5x
- EV/Sales
- 16.5x
- FCF yield
- 3.0%
- 52-week range
- $295.52 – $385.45
- Next earnings
- Oct 27, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth45
- Profitability100
- Cash flow93
- Balance sheet71
- Valuation52
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Issuers, acquirers, merchants and other network clients pay per-transaction, volume-based and service fees; data processing ($20.0B, 50.0% of FY2025 net revenue) and service revenue ($17.5B, 43.9%) are the profit engine, at a 60.0% FY2025 operating margin.
Financials by year
| FY2021Oct 2020–Sep 2021 | FY2022Oct 2021–Sep 2022 | FY2023Oct 2022–Sep 2023 | FY2024Oct 2023–Sep 2024 | FY2025Oct 2024–Sep 2025 | |
|---|---|---|---|---|---|
| Revenue | $24.1B | $29.3B | $32.7B | $35.9B | $40.0B |
| Revenue growth | +10.3% | +21.6% | +11.4% | +10.0% | +11.3% |
| Operating margin | 65.6% | 64.2% | 64.3% | 65.7% | 60.0% |
| Net income | $12.3B | $15.0B | $17.3B | $19.7B | $20.1B |
| Free cash flow | $14.5B | $17.9B | $19.7B | $18.7B | $21.6B |
| FCF margin | 60.2% | 61.0% | 60.3% | 52.0% | 53.9% |
Amounts in USD · What is free cash flow?
Margins Gross margin is not disclosed for this network model; operating margin fell to 59.99% in FY2025 from 65.68% in FY2024 (-569bp), driven by the $2.2B interchange litigation accrual, then recovered to 61.12% TTM and 64.42% in Q2 FY2026.
- Cash flow HealthyTTM operating cash flow $22.76B against net income $22.24B, cash conversion 1.12x; free cash flow $21.19B and FCF margin 49.24%, in line with the 53.94% reported for FY2025.
- Debt LowNet debt $11.6B, only 0.42x EBITDA, with total debt $24.0B TTM against $12.4B cash; interest coverage is 42.3x on TTM interest expense of $621M.
Balance sheet Leverage · Low
- Cash & short-term investments
- $12.4B
- Total debt
- $24.0B
- Net debt
- $11.6B
- Net debt / EBITDA
- 0.4x
- Interest coverage
- 42.3x
- Current ratio
- 1.1x
As of Mar 31, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution held through the period: revenue rose from $21.9B in FY2020 to $40.0B in FY2025, a 12.9% five-year CAGR, with TTM growth of 14.4% and a 51.7% net margin.
- Credibility HighRevenue growth accelerated from 14.3% (Q3 FY2025) to 17.1% (Q2 FY2026) yoy; TTM revenue $43.0B, +14.4%. Management's repeated 'resilient consumer spending, strong growth' framing is confirmed by delivered results.
Valuation range
Implied value per share · Price when researched: $391.46
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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