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1. Company Snapshot

1.a. Company Description

Visa Inc.operates as a payments technology company worldwide.The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities.


It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions.In addition, the company offers card products, platforms, and value-added services.It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands.


Visa Inc.has a strategic agreement with Ooredoo to provide an enhanced payment experience for Visa cardholders and Ooredoo customers in Qatar.Visa Inc.


was founded in 1958 and is headquartered in San Francisco, California.

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1.b. Last Insights on V

Visa Inc.'s recent performance has been negatively impacted by competitive and regulatory headwinds. An investigation into Visa's compliance with federal antitrust laws and internal controls has been launched by Bragar Eagel & Squire, P.C. on behalf of long-term stockholders. Additionally, some institutional investors have reduced their stakes in the company, including Altman Advisors Inc., which sold 223 shares, and ANB Bank, which sold 1,236 shares. The company's Q4 earnings report is expected to provide insight into consumer spending habits.

1.c. Company Highlights

2. Visa's Strong Fiscal 2025 Performance Driven by Innovation and Growth

Visa reported a robust fiscal 2025 with net revenue growing 11% year-over-year to $43.4 billion, and EPS increasing 14% to $6.23. In the fourth quarter, net revenue rose 12% year-over-year to $10.7 billion, with EPS up 10% to $2.98, beating analyst estimates of $2.97. Total payments volume reached $14 trillion, up 8% year-over-year in constant dollars, while processed transactions totaled $258 billion, up 10% year-over-year.

Publication Date: Oct -30

📋 Highlights
  • Full Year Financial Growth:: Visa achieved 11% YoY net revenue growth to $40.4B and 14% EPS growth to $3.12 per share in fiscal 2025.
  • Payments Volume Expansion:: Total full-year payments volume reached $14T, up 8% YoY, alongside 10% growth in processed transactions to $258B.
  • Tokenization Milestone:: Visa tokens surged to 16B (up from 10B in May 2024), with 270M new credentials added in 2025.
  • Stablecoin Platform Activity:: Facilitated over $140B in crypto/stablecoin flows since 2020, including $35B in spending via Visa credentials.
  • Value-Added Services Momentum:: VAS revenue grew mid-20s, contributing 30% of total revenue, driven by 4,500+ client engagements and $6.5B in incremental client revenue.

Segment Performance

The company's strong performance was driven by growth across various segments, including consumer payments, commercial payments, and money movement solutions. Commercial payments volume grew 7% in constant dollars to $1.8 trillion, while Visa Direct transactions reached 12.6 billion, up 27% year-over-year.

Innovation and Growth Drivers

Visa's focus on innovation is driving growth, with the company expanding its network of networks, growing its Visa credentials by 270 million, and increasing its Visa tokens to over 16 billion. The company's stablecoin platform facilitated over $140 billion in crypto and stablecoin flows since 2020.

Valuation and Outlook

With a P/E Ratio of 32.96 and an ROE of 52.47%, Visa's valuation suggests a premium for its strong growth prospects. Analysts estimate next year's revenue growth at 11.1%. As Ryan McInerney stated, "Our intense focus on innovation is delivering results for Visa and our clients, and the Visa as a Service stack has positioned Visa to be a hyperscaler for the payments ecosystem." The company's guidance for 2026 expects adjusted net revenue growth to be in the low double digits, with a nominal basis benefiting from FX.

Growth Prospects and Risks

Visa's growth prospects are driven by its expanding presence in the payments ecosystem, including its agentic commerce and stablecoin initiatives. However, the company faces risks from macroeconomic uncertainty and potential changes in consumer spending habits.

3. NewsRoom

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Visa at 25X Earnings: A Premium Story or a Better Buy on the Pullback?

Dec -04

Source: zacks.com

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Buy Visa, Ignore PayPal. How J.P. Morgan Is Playing Payments Stocks in 2026.

Dec -04

Source: barrons.com

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Visa plans Syria launch after deal with central bank on digital payments

Dec -04

Source: reuters.com

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Visa Launches Global Art Collection to Elevate Creators and Celebrate the FIFA World Cup 26™

Dec -04

Source: businesswire.com

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Visa And Circle Team Up To Launch Vietnam's First AI PayLater Card

Dec -04

Source: feeds.benzinga.com

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Circle Collaborates with Pismo and Visa to Launch Vietnam's First AI-Powered PayLater Card

Dec -04

Source: businesswire.com

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Visa Inc. (V) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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Does Visa's AWS Move Signal a New Standard for Secure AI Transactions?

Dec -02

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.50%)

6. Segments

Payment Services

Expected Growth: 11.0%

The expected growth rate for Payment Services is slightly higher than the global revenue growth hypothesis of 10.5%, driven by the increasing adoption of digital payments, particularly in emerging markets, and the continued shift away from cash and checks. As consumers and businesses increasingly rely on digital payment solutions, Visa's Payment Services segment is poised to benefit, driving revenue growth above the global average.

7. Detailed Products

VisaNet

A payment processing network that enables secure, reliable, and efficient transactions between merchants, acquirers, and issuers.

Visa Direct

A push payments platform that enables fast, convenient, and secure transactions between businesses and individuals.

Visa Token Service

A tokenization platform that replaces sensitive payment information with a unique token, enhancing security and convenience.

Visa Checkout

A digital payment service that simplifies online checkout, reducing friction and increasing conversion rates.

Visa Business Solutions

A suite of payment solutions designed to help businesses optimize their payment processes, reduce costs, and improve efficiency.

Visa Analytics Platform

A data analytics platform that provides insights and intelligence to help businesses optimize their payment strategies.

Visa Risk Manager

A risk management platform that helps prevent fraud, reduce risk, and improve the overall payment experience.

8. Visa Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Visa's business model is highly dependent on its network effects, making it difficult for substitutes to emerge. Additionally, the company's strong brand recognition and partnerships with financial institutions further reduce the threat of substitutes.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative payment methods, Visa's strong brand and widespread acceptance reduce the bargaining power of customers. Furthermore, the company's partnerships with financial institutions and merchants also mitigate this threat.

Bargaining Power Of Suppliers

Visa's suppliers, primarily financial institutions and merchants, have limited bargaining power due to the company's dominant market position and strong brand recognition. This reduces the threat of suppliers negotiating better terms or switching to alternative payment processors.

Threat Of New Entrants

While new entrants may emerge in the payment processing industry, Visa's strong brand, network effects, and partnerships with financial institutions and merchants create significant barriers to entry. However, the rise of fintech companies and digital payment methods poses a moderate threat to Visa's market share.

Intensity Of Rivalry

The payment processing industry is highly competitive, with companies like Mastercard, American Express, and PayPal posing significant threats to Visa's market share. The intensity of rivalry is further increased by the emergence of fintech companies and digital payment methods.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 34.69%
Debt Cost 3.95%
Equity Weight 65.31%
Equity Cost 8.68%
WACC 7.04%
Leverage 53.10%

11. Quality Control: Visa Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Synchrony

A-Score: 6.9/10

Value: 7.9

Growth: 7.8

Quality: 7.6

Yield: 4.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Discover

A-Score: 6.8/10

Value: 6.2

Growth: 7.8

Quality: 7.7

Yield: 3.0

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Visa

A-Score: 6.1/10

Value: 0.8

Growth: 7.8

Quality: 8.8

Yield: 1.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
Capital One

A-Score: 5.9/10

Value: 4.4

Growth: 6.3

Quality: 6.3

Yield: 3.0

Momentum: 8.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Amex

A-Score: 5.5/10

Value: 2.4

Growth: 6.6

Quality: 6.9

Yield: 2.0

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
PayPal

A-Score: 4.8/10

Value: 5.1

Growth: 7.7

Quality: 7.3

Yield: 0.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

327.1$

Current Price

327.1$

Potential

-0.00%

Expected Cash-Flows