Visa operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa was founded in 1958 and is based in San Francisco, California.
V Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Visa Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Visa Inc ranked in the 20th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for V, they are:
As a business, V is generating more cash flow than 97.33% of positive cash flow stocks in the Financial Services.
The business' balance sheet suggests that 5% of the company's capital is sourced from debt; this is greater than merely 16.13% of the free cash flow producing stocks we're observing.
V's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 43.63% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Visa Inc? See ARGO, FCRD, BEN, BAM, and BLK.
Global payments firm MoneyGram is advancing its Visa debit card deposit service across Europe in a partnership with Checkout.com and continued collaboration with Visa’s real-time push payments platform Visa Direct. "Our strategic partnerships have enabled MoneyGram to create the world's leading network, and this expansion is another milestone on our journey to lead the evolution […]
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