Visa Inc (NYSE:V) – WAIT level

Operates as a global payments technology
Visa, Inc. is a payments technology company, which connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments.
The company offers fraud protection for consumers and payment for merchants.
It provides pay now with debit, pay ahead with prepaid or pay later with credit products.
The company was founded by Hock Dee in 1970 and is headquartered in San Francisco, CA.

finviz dynamic chart for  V

All calculations are made to date: 2017/07/17

EPS growth asumption = 22% (average EPS year growth in next 3 years)

Forward PE asumption = 27.83 (average PE from next 3 years)

PEG (Price/Earnings/Growth) = 1.8 (0->1 Perfect, 1->2 Good, 2->4 Average, 4+ Poor )

Dividend share = 0.61%

3 year EPS/ 0 year EPS = 182.08%

Debt/EBITDA = 0.66

Actual price per share = 96.93

Present good value per share = 83.58 (calculation output)

Actual price/present good value price = 116%

VISA company is now in good shape and by our point of view it can shows growing trend in future as it is having good product to sell. There is increase of Debt, but this increase is still low in compare with other companies.

From my point of view I am wondering how VISA will fight with companies like Facebook, Alibaba, Amazon and others when they will attack VISA’s business area. For those companies will be important to increase on-line payment method with their own platform and big adventage for them is that they have already huge number of members.

The current price is higher than Present good value per share so our recommendation is to wait till price decrease.

Final evaluation: WAIT

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Sales, EBITDA and Net income (milions USD)

  • Sales
  • Net income

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