Highly Regarded

Is Visa Inc. (V) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Financials sector peers in our coverage

154% Premium TTM fundamentals · sector averages from covered peers

V trades at 16.7× TTM sales — a 154% premium to its Financials sector average of 6.6× in our coverage.

V has negative trailing-twelve-month earnings, so a P/E ratio isn't meaningful — we compare on price-to-sales instead.

The Numbers

P/E (TTM)

—

Sector avg: 23.8×

P/S (TTM)

16.7×

Sector avg: 6.6×

Market Cap

$689.57B

EPS (TTM): —

Revenue (TTM)

$41.39B

Net income: $20.79B

Financials Peer Comparison

How V's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
V This page $358.55 —
BRK.B $490.86 —
MA $543.52 34.8×
BAC $61.26 16.7×
MS $215.49 22.1×
GS $1065.59 21.6×

Is the Premium Justified?

July 12, 2026

Visa's P/S of 16.2x, despite negative TTM earnings, reflects investor confidence in its robust revenue growth and dominant market position in the global digital payments landscape. The company reported strong Q2 FY26 results, with a 17% year-over-year net revenue increase and 20% EPS growth, driven by resilient consumer spending. Payments volume, cross-border volume, and processed transactions all showed solid growth. Visa holds a significant market share in US card purchase volume. Its value-added services, now comprising 30% of net revenue and growing approximately 28% year-over-year, are crucial for mitigating macro risks. Furthermore, Visa is actively expanding into the rapidly growing stablecoin market, recently joining partners to issue a new stablecoin.

Sources

Frequently Asked Questions

Is V overvalued or undervalued?
On trailing-twelve-month sales, V trades at 16.7x versus a Financials sector average of 6.6x in our coverage — a 154.2% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing V with its own Financials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Financials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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