Visa Profitability Analysis

V Stock  USD 279.02  1.58  0.56%   
Based on the key profitability measurements obtained from Visa's financial statements, Visa Class A may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Visa's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
2006-06-30
Previous Quarter
4.7 B
Current Value
4.9 B
Quarterly Volatility
1.4 B
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
Price To Sales Ratio is likely to drop to 10.26 in 2024. Operating Cash Flow Sales Ratio is likely to drop to 0.32 in 2024. At this time, Visa's Operating Income is fairly stable compared to the past year. Income Before Tax is likely to climb to about 25.4 B in 2024, despite the fact that Non Operating Income Net Other is likely to grow to (151.9 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.630.72
Fairly Down
Pretty Stable
Return On Equity0.50.51
Fairly Down
Pretty Stable
For Visa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Visa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Visa Class A utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Visa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Visa Class A over time as well as its relative position and ranking within its peers.
  
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Is Visa's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Visa. If investors know Visa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Visa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.203
Dividend Share
1.94
Earnings Share
8.67
Revenue Per Share
16.386
Quarterly Revenue Growth
0.088
The market value of Visa Class A is measured differently than its book value, which is the value of Visa that is recorded on the company's balance sheet. Investors also form their own opinion of Visa's value that differs from its market value or its book value, called intrinsic value, which is Visa's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Visa's market value can be influenced by many factors that don't directly affect Visa's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Visa's value and its price as these two are different measures arrived at by different means. Investors typically determine if Visa is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Visa's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Visa Class A Price To Earnings To Growth vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Visa's current stock value. Our valuation model uses many indicators to compare Visa value to that of its competitors to determine the firm's financial worth.
Visa Class A is rated first in current valuation category among related companies. It is rated first in price to earnings to growth category among related companies . The ratio of Current Valuation to Price To Earnings To Growth for Visa Class A is about  333,032,862,117 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Visa by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Visa's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Visa's earnings, one of the primary drivers of an investment's value.

Visa Current Valuation vs. Competition

Visa Class A is rated first in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 579.36 Billion. Visa totals roughly 578.48 Billion in current valuation claiming about 100% of equities under Financials industry.

Visa Price To Earnings To Growth vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Visa

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
578.48 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.

Visa

PEG Ratio

 = 

PE Ratio

EPS Growth

 = 
1.74 X
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.

Visa Price To Earnings To Growth Comparison

Visa is currently under evaluation in price to earnings to growth category among related companies.

Visa Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Visa, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Visa will eventually generate negative long term returns. The profitability progress is the general direction of Visa's change in net profit over the period of time. It can combine multiple indicators of Visa, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-1.2 B-1.1 B
Operating Income24.1 B25.4 B
Income Before Tax24.2 B25.4 B
Total Other Income Expense Net42.5 M44.7 M
Net Income19.9 B20.9 B
Income Tax Expense4.3 B4.5 B
Net Income Applicable To Common Shares19.5 B20.5 B
Net Income From Continuing Ops19.9 B20.9 B
Non Operating Income Net Other-159.8 M-151.9 M
Net Interest Income-579.6 M-608.6 M
Interest Income879.8 M571.1 M
Change To Netincome14.4 B15.2 B
Net Income Per E B T 0.74  0.57 

Visa Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Visa. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Visa position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Visa's important profitability drivers and their relationship over time.

Visa Profitability Trends

Visa profitability trend refers to the progression of profit or loss within a business. An upward trend means that Visa's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Visa's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Visa Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Visa different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Visa in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Visa's future profitability.

Use Visa in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Visa position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Visa will appreciate offsetting losses from the drop in the long position's value.

Visa Pair Trading

Visa Class A Pair Trading Analysis

The ability to find closely correlated positions to Visa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Visa when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Visa - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Visa Class A to buy it.
The correlation of Visa is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Visa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Visa Class A moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Visa can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Visa position

In addition to having Visa in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Macroaxis Index Theme
An experimental equal-weighted index theme of selected equities generated based on Macroaxis rating and scoring system. The Macroaxis Index theme has 52 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Macroaxis Index Theme or any other thematic opportunities.
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When determining whether Visa Class A is a strong investment it is important to analyze Visa's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Visa's future performance. For an informed investment choice regarding Visa Stock, refer to the following important reports:
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You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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When running Visa's price analysis, check to measure Visa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visa is operating at the current time. Most of Visa's value examination focuses on studying past and present price action to predict the probability of Visa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Visa's price. Additionally, you may evaluate how the addition of Visa to your portfolios can decrease your overall portfolio volatility.
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To fully project Visa's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Visa Class A at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Visa's income statement, its balance sheet, and the statement of cash flows.
Potential Visa investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Visa investors may work on each financial statement separately, they are all related. The changes in Visa's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Visa's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.