Key Stats for Visa Stock
- Past-Week Performance: -1%
- 52-Week Range: $299 to $376
- Valuation Model Target Price: $468
- Implied Upside: 42% over 2.6 years
What Happened to V Stock?
Visa Inc. (V) shares declined 1% over the past week, remaining below the $375.51 52-week peak as trading settled following recent earnings-related swings.
A late-January disclosures included Visa’s fiscal first-quarter results on January 29, regional expansion news on January 26, and regulatory commentary emerging in early February.
Explicitly, Visa Inc. reported 8% global payment volume growth, 12% cross-border volume growth, $10.9 billion revenue, and $3.17 adjusted EPS, while maintaining expense and investment priorities.
Notably, trading appeared to focus on foreign-exchange headwinds, higher near-term costs tied to global events, and expectations already incorporating steady consumer spending trends.
Visa also announced Middle East regional restructuring, a Visa Direct partnership with UnionPay for China payouts, and routine shareholder approvals reported on January 27.
Vi stock’s outlook, long-term strategy, and growth priorities remained unchanged, with last week’s price action reflecting expectations shaped by disclosed results and policy discussions.
Is Visa Stock Fairly Valued Right Now?
Under the valuation model shown, the stock is modeled using:
- Revenue Growth: 10.6%
- Operating Margins: 68%
- Exit P/E Multiple: 24.9x
Is Visa Stock Fairly Valued Right Now?
Visa’s operating profile reflects a fully scaled global payments network, with revenue growing at a projected 10.6% CAGR through fiscal 2028 as digital payments penetration continues across consumer and cross-border channels.
Growth remains front-loaded, with double-digit expansion sustained through the forecast period, but the model assumes gradual normalization as Visa compounds off a much larger revenue base.
Profitability remains firmly established, with EBITDA and EBIT margins holding near 70% and 68%, reflecting network scale, pricing power, and low incremental costs.
Operating leverage supports earnings growth, with normalized EPS compounding at roughly 15% annually through 2028, driven by volume growth rather than margin expansion.
Free cash flow remains a central pillar of the valuation, with FCF margins consistently above 55% and absolute cash generation rising steadily alongside revenue.
The valuation model implies a $468 target price by late 2028, representing about 42% total upside from current levels based on execution rather than multiple expansion.
Visa stock appears to be undervalued, as the current share price discounts a slower growth and cash flow ramp than the model assumes for a mature but still expanding payments platform.
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