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Visa Inc Class A V

Morningstar Rating
$265.74 +3.19 (1.22%)
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Company Report

Visa and Mastercard: Judge May Not Approve Settlement

In March, Visa and Mastercard announced that they had reached a settlement to a long-standing antitrust lawsuit. As part of the agreement, the networks would slightly lower credit interchange fees and cap these fees at the current level for five years. At the time, we were happy to see this lawsuit seemingly resolved. But according to The Wall Street Journal, the judge has now informed Visa and Mastercard that she deems these changes inadequate and is unlikely to approve the settlement. This would presumably force the networks to arrange a new settlement or go to trial. While this is an obvious setback and we would prefer to see this matter closed as quickly as possible, we believe Visa and Mastercard’s unique competitive positions and their wide moats create ongoing legal and regulatory event risk, and this lawsuit represents just one piece of that. We will maintain our $272 and $451 fair value estimates for Visa and Mastercard, respectively, and see shares for both companies as about fairly valued.

Price vs Fair Value

V is trading at a 122% premium.
Price
$265.74
Fair Value
$939.00
Uncertainty
Medium
1-Star Price
$919.80
5-Star Price
$212.80
Economic Moat
Khcs
Capital Allocation
Gvfzszjrs

Bulls Say, Bears Say

Bulls

Visa has commanding market share in a scalable industry.

Bears

Visa’s leading market share creates more opportunities for loss than gain.

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News

Trading Information

Previous Close Price
$262.55
Day Range
$263.66267.40
52-Week Range
$227.68290.96
Bid/Ask
$265.25 / $265.99
Market Cap
$535.07 Bil
Volume/Avg
6.6 Mil / 8.2 Mil

Key Statistics

Price/Earnings (Normalized)
28.24
Price/Sales
16.01
Dividend Yield (Trailing)
0.76%
Dividend Yield (Forward)
0.78%
Total Yield
3.17%

Company Profile

Visa is the largest payment processor in the world. In fiscal 2023, it processed almost $15 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Large Core
Total Number of Employees
28,800

Competitors

Valuation

Metric
V
AXP
MA
Price/Earnings (Normalized)
28.2419.6634.46
Price/Book Value
13.995.9656.58
Price/Sales
16.012.8116.11
Price/Cash Flow
16.6411.2828.41
Price/Earnings
V
AXP
MA

Financial Strength

Metric
V
AXP
MA
Quick Ratio
1.000.70
Current Ratio
1.401.09
Interest Coverage
36.2325.19
Quick Ratio
V
AXP
MA

Profitability

Metric
V
AXP
MA
Return on Assets (Normalized)
21.51%3.77%29.66%
Return on Equity (Normalized)
49.69%34.77%191.94%
Return on Invested Capital (Normalized)
33.22%57.01%
Return on Assets
V
AXP
MA
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Credit Services Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Mastercard Inc Class A
MA
TcvrydqqFmy$409.1 Bil
American Express Co
AXP
YzkntszlpKyw$171.6 Bil
PayPal Holdings Inc
PYPL
GyjsbwyjJdnsvc$63.0 Bil
Capital One Financial Corp
COF
QzvgjkxqmNydntf$52.9 Bil
Discover Financial Services
DFS
PprdklbwKbxpvs$32.9 Bil
Synchrony Financial
SYF
KmxpgypdBpyp$19.7 Bil
Ally Financial Inc
ALLY
FfvspxtbWtsgb$13.0 Bil
SoFi Technologies Inc Ordinary Shares
SOFI
FvyffgcBcvq$7.4 Bil
The Western Union Co
WU
LcptnhrGmwpwl$4.3 Bil

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