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

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

160% Premium TTM fundamentals · sector averages from covered peers

V trades at 17.6× TTM sales — a 160% premium to its Financials sector average of 6.8× 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: 24.3×

P/S (TTM)

17.6×

Sector avg: 6.8×

Market Cap

$729.81B

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)	P/S (TTM)	Market Cap
V This page	$379.47	—	17.6×	$729.81B
BRK.B Berkshire Hathaway Inc.	$504.14	—	2.9×	$1.09T
MA Mastercard Inc.	$589.33	37.7×	16.7×	$525.94B
BAC Bank of America Corporation	$61.96	16.9×	4.2×	$446.88B
MS Morgan Stanley	$213.41	21.9×	4.9×	$337.83B
GS Goldman Sachs Group Inc.	$1026.48	20.9×	5.2×	$307.87B

Is the Premium Justified?

August 9, 2026

Visa Inc. (V) currently reports negative TTM earnings, making its P/E multiple not applicable. However, its Price-to-Sales (P/S) ratio stands at 16.8x. This valuation reflects the company's strong revenue growth and dominant position in the digital payments sector. Visa delivered better-than-expected fiscal third-quarter earnings and revenue, with net revenue rising 14% to $11.6 billion, driven by resilient consumer spending and robust cross-border payment volumes. Global payments volume surpassed $4 trillion for the first time, increasing 10% year-over-year. The negative TTM earnings appear to be influenced by significant one-off charges in the quarter, including $563 million in severance costs and a $237 million litigation provision. Visa continues to benefit from the global shift towards digital payments, leveraging its extensive network, security protocols, and investments in value-added services. While regulatory scrutiny and competition from fintech players remain potential risks, the company's core business demonstrates strong underlying momentum.

Sources

Frequently Asked Questions

Is V overvalued or undervalued?

On trailing-twelve-month sales, V trades at 17.6x versus a Financials sector average of 6.8x in our coverage — a 159.7% 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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