Highly Regarded

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

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

184% Premium TTM fundamentals · sector averages from covered peers

V trades at 18.6× TTM sales — a 184% premium to its Financials sector average of 6.5× 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: 22.6×

P/S (TTM)

18.6×

Sector avg: 6.5×

Market Cap

$768.56B

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 $399.62 —
BRK.B $525.88 —
MA $616.27 39.4×
BAC $51.74 14.1×
MS $182.10 18.7×
GS $891.33 18.1×

Is the Premium Justified?

October 11, 2026

Visa, with negative TTM earnings, is evaluated using a P/S of 17.9x. Despite the reported negative TTM earnings, recent fiscal Q3 2026 results showed strong performance, with net revenue increasing 14% year-over-year to $11.6 billion and GAAP net income of $5.6 billion. This growth was driven by robust payments volume, cross-border transactions, and processed transactions. The payment processing market is experiencing rapid expansion, projected to grow significantly in the coming years. Visa's high P/S multiple reflects its dominant market position, strong revenue growth in the expanding digital payments ecosystem, and its ability to generate substantial cash flow from its network-based business model.

Sources

Frequently Asked Questions

Is V overvalued or undervalued?
On trailing-twelve-month sales, V trades at 18.6x versus a Financials sector average of 6.5x in our coverage — a 183.6% 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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Same question, Financials peers

GS BAC MA BRK.B MS JPM