Visa Inc. (V) Financial Ratios
21 years of historical data (2005–2025) · Financial Services · Financial - Credit Services
EV/EBITDA
↓
25.10
+4% vs avg
5yr avg: 24.22
30Y Low12.7·High51.5
P/FCF
↓
29.10
+4% vs avg
5yr avg: 28.02
30Y Low20.2·High49.1
P/B Ratio
↑
16.97
↑+25% vs avg
5yr avg: 13.59
30Y Low2.1·High17.7
ROE
↑
52.1%
↓+16% vs avg
5yr avg: 44.7%
30Y Low7%·High179%
Debt/EBITDA
↓
1.00
↓-4% vs avg
5yr avg: 1.04
30Y Low0.0·High1.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
V Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Visa Inc. trades at 32.1x earnings, roughly in line with its 5-year average of 30.9x, sitting at the 50th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a premium of 136%. On a free-cash-flow basis, the stock trades at 29.1x P/FCF, roughly in line with the 5-year average of 28.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $627.8B | $671.2B | $557.9B | $479.6B | $379.5B | $487.4B | $444.5B | $390.8B | $349.6B | $252.0B | $199.6B |
| Enterprise Value | $632.8B | $676.2B | $566.7B | $483.7B | $386.2B | $491.9B | $452.9B | $399.7B | $358.0B | $260.5B | $209.9B |
| P/E Ratio → | 32.08 | 33.47 | 28.26 | 27.78 | 25.38 | 39.56 | 40.89 | 32.33 | 33.96 | 37.59 | 33.35 |
| P/S Ratio | 15.69 | 16.78 | 15.53 | 14.69 | 12.95 | 20.22 | 20.35 | 17.01 | 16.96 | 13.73 | 13.24 |
| P/B Ratio | 16.97 | 17.70 | 14.25 | 12.38 | 10.66 | 12.97 | 12.28 | 11.27 | 10.28 | 7.69 | 6.07 |
| P/FCF | 29.10 | 31.11 | 29.84 | 24.35 | 21.22 | 33.56 | 45.81 | 32.49 | 29.14 | 29.65 | 39.52 |
| P/OCF | 27.23 | 29.11 | 27.96 | 23.11 | 20.13 | 32.01 | 42.58 | 30.57 | 27.50 | 27.37 | 35.82 |
P/E links to full P/E history page with 30-year chart
V EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Visa Inc.'s enterprise value stands at 25.1x EBITDA, roughly in line with its 5-year average of 24.2x. The Financial Services sector median is 11.4x, placing the stock at a 120% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 16.90 | 15.78 | 14.81 | 13.18 | 20.41 | 20.73 | 17.40 | 17.37 | 14.19 | 13.92 |
| EV / EBITDA | 25.10 | 26.82 | 23.01 | 22.05 | 19.63 | 29.62 | 30.50 | 25.53 | 26.39 | 20.52 | 25.03 |
| EV / EBIT | 26.37 | 27.28 | 23.08 | 22.31 | 20.68 | 29.67 | 31.66 | 25.93 | 26.68 | 21.42 | 24.87 |
| EV / FCF | — | 31.34 | 30.32 | 24.56 | 21.60 | 33.87 | 46.67 | 33.23 | 29.85 | 30.65 | 41.56 |
V Profitability
Margins and return-on-capital ratios measuring operating efficiency
Visa Inc. earns an operating margin of 60.0%, significantly above the Financial Services sector average of 20.3%. Operating margins have compressed from 64.3% to 60.0% over the past 3 years, signaling potential cost pressures or competitive headwinds. Return on equity of 52.1% is exceptionally high — well above the sector median of 9.0%. ROIC of 29.2% represents excellent returns on invested capital versus a sector median of 5.5%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.4% | 80.4% | 80.4% | 79.9% | 80.4% | 79.4% | 79.3% | 81.9% | 81.3% | 82.3% | 81.7% |
| Operating Margin | 60.0% | 60.0% | 65.7% | 64.3% | 64.2% | 65.6% | 64.5% | 65.3% | 62.9% | 66.2% | 52.3% |
| Net Profit Margin | 50.1% | 50.1% | 55.0% | 52.9% | 51.0% | 51.1% | 49.7% | 52.6% | 50.0% | 36.5% | 39.7% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 52.1% | 52.1% | 50.7% | 46.5% | 40.9% | 33.4% | 30.7% | 35.2% | 30.9% | 20.4% | 19.1% |
| ROA | 20.7% | 20.7% | 21.3% | 19.6% | 17.8% | 15.0% | 14.2% | 17.0% | 15.0% | 10.1% | 11.6% |
| ROIC | 29.2% | 29.2% | 29.7% | 26.9% | 24.2% | 19.9% | 18.8% | 22.0% | 19.1% | 18.2% | 15.0% |
| ROCE | 36.2% | 36.2% | 34.9% | 31.8% | 28.5% | 23.7% | 22.4% | 25.6% | 22.4% | 21.3% | 17.5% |
V Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Visa Inc. carries a Debt/EBITDA ratio of 1.0x, which is very conservative (77% below the sector average of 4.3x). Net debt stands at $5.0B ($25.2B total debt minus $20.2B cash). Interest coverage of 42.1x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.66 | 0.66 | 0.53 | 0.53 | 0.63 | 0.56 | 0.68 | 0.48 | 0.49 | 0.56 | 0.48 |
| Debt / EBITDA | 1.00 | 1.00 | 0.85 | 0.93 | 1.14 | 1.26 | 1.66 | 1.07 | 1.23 | 1.45 | 1.89 |
| Net Debt / Equity | — | 0.13 | 0.23 | 0.11 | 0.19 | 0.12 | 0.23 | 0.26 | 0.25 | 0.26 | 0.31 |
| Net Debt / EBITDA | 0.20 | 0.20 | 0.36 | 0.19 | 0.34 | 0.27 | 0.56 | 0.57 | 0.62 | 0.67 | 1.22 |
| Debt / FCF | — | 0.23 | 0.47 | 0.21 | 0.38 | 0.31 | 0.86 | 0.74 | 0.71 | 1.00 | 2.03 |
| Interest Coverage | 42.08 | 42.08 | 38.31 | 33.67 | 34.71 | 32.31 | 27.72 | 28.92 | 21.92 | 21.60 | 19.76 |
V Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.08x means Visa Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has declined from 1.45x to 1.08x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.28 | 1.45 | 1.45 | 1.75 | 1.91 | 1.56 | 1.61 | 1.90 | 1.78 |
| Quick Ratio | 1.08 | 1.08 | 1.28 | 1.45 | 1.45 | 1.75 | 1.91 | 1.56 | 1.61 | 1.90 | 1.78 |
| Cash Ratio | 0.58 | 0.58 | 0.45 | 0.71 | 0.75 | 1.05 | 1.12 | 0.58 | 0.72 | 0.99 | 0.70 |
| Asset Turnover | — | 0.40 | 0.38 | 0.36 | 0.34 | 0.29 | 0.27 | 0.32 | 0.30 | 0.27 | 0.24 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
V Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Visa Inc. returns 2.9% to shareholders annually — split between a 0.7% dividend yield and 2.1% buyback yield. The payout ratio of 23.1% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.1% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 23.1% | 23.1% | 21.4% | 21.7% | 21.4% | 22.7% | 24.5% | 18.8% | 18.6% | 23.6% | 22.5% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 3.0% | 3.5% | 3.6% | 3.9% | 2.5% | 2.4% | 3.1% | 2.9% | 2.7% | 3.0% |
| FCF Yield | 3.4% | 3.2% | 3.4% | 4.1% | 4.7% | 3.0% | 2.2% | 3.1% | 3.4% | 3.4% | 2.5% |
| Buyback Yield | 2.1% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 2.9% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $2.0B | $2.0B | $2.1B | $2.1B | $2.2B | $2.2B | $2.3B | $2.3B | $2.4B | $2.4B |
Peer Comparison
Compare V with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 VYou | $628B | 32.1 | 25.1 | 29.1 | 80.4% | 60.0% | 52.1% | 29.2% | 1.0 |
 MA | $434B | 29.6 | 21.5 | 25.6 | 83.4% | 59.2% | 209.9% | 56.5% | 0.9 |
 AXP | $232B | 22.0 | 15.5 | 14.5 | 83.2% | 17.1% | 34.0% | 12.0% | 3.7 |
 PYPL | $37B | 7.9 | 5.6 | 6.7 | 46.6% | 18.3% | 25.7% | 15.0% | 1.4 |
 FIS | $20B | 50.9 | 6.4 | 7.0 | 36.9% | 16.5% | 2.6% | 6.0% | 1.1 |
 FISV | $26B | 7.5 | 6.1 | 5.9 | 59.4% | 26.9% | 13.0% | 8.1% | 3.3 |
 GPN | $16B | 11.5 | 10.1 | 7.8 | 72.6% | 19.1% | 6.0% | 3.0% | 7.6 |
 WEX | $4B | 15.1 | 8.3 | 14.1 | 54.9% | 25.4% | 22.3% | 9.6% | 4.8 |
 FLYW | $2B | 144.1 | 41.8 | 19.1 | 61.4% | 1.8% | 1.6% | 2.1% | — |
 JPM | $909B | 16.2 | 18.5 | 9.0 | 59.9% | 26.0% | 16.1% | 4.5% | 11.6 |
 BAC | $424B | 14.7 | 14.0 | 33.6 | 56.1% | 19.7% | 10.2% | 3.5% | 9.1 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 21 years · Updated daily
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V — Frequently Asked Questions
Quick answers to the most common questions about buying V stock.
What is Visa Inc.'s P/E ratio?
Visa Inc.'s current P/E ratio is 32.1x. The historical average is 33.7x. This places it at the 50th percentile of its historical range.
What is Visa Inc.'s EV/EBITDA?
Visa Inc.'s current EV/EBITDA is 25.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.5x.
What is Visa Inc.'s ROE?
Visa Inc.'s return on equity (ROE) is 52.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 38.5%.
Is V stock overvalued?
Based on historical data, Visa Inc. is trading at a P/E of 32.1x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Visa Inc.'s dividend yield?
Visa Inc.'s current dividend yield is 0.72% with a payout ratio of 23.1%.
What are Visa Inc.'s profit margins?
Visa Inc. has 80.4% gross margin and 60.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Visa Inc. have?
Visa Inc.'s Debt/EBITDA ratio is 1.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.