Highly Regarded

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

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

155% Premium TTM fundamentals · sector averages from covered peers

V trades at 16.6× TTM sales — a 155% 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: 23.7×

P/S (TTM)

16.6×

Sector avg: 6.5×

Market Cap

$686.99B

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 $357.21 —
BRK.B $506.66 —
MA $533.36 34.1×
BAC $59.89 16.4×
MS $222.08 22.8×
GS $1054.88 21.4×

Is the Premium Justified?

July 6, 2026

Visa, despite reporting negative TTM earnings, commands a P/S multiple of 16.6x, reflecting its dominant position and consistent revenue growth in the digital payments industry. The company's Q2 2026 results demonstrated strong performance, with EPS beating expectations and revenue surging 17.1% year-over-year, marking its strongest growth since 2013. This growth was driven by increased global payments volume and a significant jump in value-added services revenue. Analysts anticipate continued earnings growth for the next year, and Visa has consistently beaten EPS estimates in recent quarters. The high P/S multiple is justified by its robust network effect, expanding service offerings, and the ongoing global shift towards electronic transactions, underscoring its strong market leadership and future revenue potential.

Sources

Frequently Asked Questions

Is V overvalued or undervalued?
On trailing-twelve-month sales, V trades at 16.6x versus a Financials sector average of 6.5x in our coverage — a 154.8% 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

MS BAC JPM MA GS BRK.B