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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Visa Inc. To summarize, we found that Visa Inc ranked in the 22th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 55.67%. 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 97.2% of its sector Financial Services.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately merely 11.42% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
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 56.12% 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 AON, VOYA, CUII, PRAA, and BX.