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. Our DCF analysis suggests the stock is overvalued by about 69.17%. The most interesting components of our discounted cash flow analysis for Visa Inc ended up being:
The company has produced more trailing twelve month cash flow than 97.33% of its sector Financial Services.
The business' balance sheet suggests that 4% of the company's capital is sourced from debt; this is greater than just 12.57% 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 2%; for context, that number is higher than 45.72% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SUNS, SCU, VOYA, FDS, and PRA can be thought of as valuation peers to V, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
DOW UPDATE Shares of Goldman Sachs and Caterpillar are posting losses Friday morning, sending the Dow Jones Industrial Average into negative territory. The Dow (DJIA) was most recently trading 67 points lower (-0.