Latest Ratios: P/E Ratio 35.5x · EV/EBITDA 27.0x · ROE 52.1%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $675.9B | $671.2B | $557.9B | $479.6B | $379.5B | $487.4B | $444.5B | $390.8B | $349.6B | $252.0B | $199.6B |
| Enterprise Value | $681.0B | $676.2B | $566.7B | $483.7B | $386.2B | $491.9B | $452.9B | $399.7B | $358.0B | $260.5B | $209.9B |
| P/E Ratio → | 35.49 | 33.47 | 28.26 | 27.78 | 25.38 | 39.56 | 40.89 | 32.33 | 33.96 | 37.59 | 33.35 |
| P/S Ratio | 17.15 | 17.03 | 15.81 | 14.98 | 13.19 | 20.66 | 20.84 | 17.41 | 17.48 | 14.16 | 13.62 |
| P/B Ratio | 18.78 | 17.70 | 14.25 | 12.38 | 10.66 | 12.97 | 12.28 | 11.27 | 10.28 | 7.69 | 6.07 |
| P/FCF | 31.33 | 31.11 | 29.84 | 24.35 | 21.22 | 33.56 | 45.81 | 32.49 | 29.14 | 29.65 | 39.52 |
| P/OCF | 29.31 | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 17.16 | 16.06 | 15.11 | 13.42 | 20.85 | 21.23 | 17.81 | 17.90 | 14.64 | 14.32 |
| EV / EBITDA | 27.01 | 26.82 | 23.01 | 22.05 | 19.63 | 29.62 | 30.50 | 25.53 | 26.39 | 20.52 | 25.03 |
| EV / EBIT | 28.38 | 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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% | 0.7% | 0.8% | 0.8% | 0.8% | 0.6% | 0.6% | 0.6% | 0.5% | 0.6% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.8% | 3.0% | 3.5% | 3.6% | 3.9% | 2.5% | 2.4% | 3.1% | 2.9% | 2.7% | 3.0% |
| FCF Yield | 3.2% | 3.2% | 3.4% | 4.1% | 4.7% | 3.0% | 2.2% | 3.1% | 3.4% | 3.4% | 2.5% |
| Buyback Yield | 2.0% | 2.0% | 3.0% | 2.5% | 3.1% | 1.8% | 1.8% | 2.2% | 2.1% | 2.7% | 3.6% |
| Total Shareholder Yield | 2.6% | 2.7% | 3.8% | 3.3% | 3.9% | 2.4% | 2.4% | 2.8% | 2.6% | 3.4% | 4.3% |
| Shares Outstanding | — | $2.0B | $2.0B | $2.1B | $2.1B | $2.2B | $2.2B | $2.3B | $2.3B | $2.4B | $2.4B |
Includes 30+ ratios · 21 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
Bull/bear thesis, analyst target revisions, and earnings execution.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying V stock.
Visa Inc.'s current P/E ratio is 35.5x. The historical average is 33.7x. This places it at the 72th percentile of its historical range.
Visa Inc.'s current EV/EBITDA is 27.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.5x.
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%.
Based on historical data, Visa Inc. is trading at a P/E of 35.5x. This is at the 72th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Visa Inc.'s current dividend yield is 0.65% with a payout ratio of 23.1%.
Visa Inc. has 80.4% gross margin and 60.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Visa Inc.'s Debt/EBITDA ratio is 1.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory pricing pressure
Metrics are mathematically derived from official filings.
Premium Multiple Reflects Toll-Booth Model
Visa trades at 18.2x tangible book and 35.9x trailing earnings, a premium justified by its asset-light network and 15.9% ROE, according to recent financial statements.
The P/B of 18.99 is far above traditional banks, reflecting the market's pricing of Visa as a high-return, low-risk franchise rather than a balance-sheet lender. The forward P/E of 27.74 implies expectations of sustained double-digit earnings growth, which appears supported by the 14% revenue growth in the latest quarter. However, the PEG of 2.27 suggests that the market may be pricing in growth that is not fully supported by near-term EPS momentum, especially given the recent EPS miss.
Asset-Light Model Drives Superior ROE
Visa's ROE improved to 15.9% in 2026Q3 from 13.3% in 2025Q4, driven by a 5.9% ROA and minimal leverage, as reported in financial statements, highlighting the scalability of its network.
The DuPont decomposition reveals that Visa's ROE is not reliant on leverage but on exceptional asset utilization, with ROA of 5.9% dwarfing that of traditional banks. The efficiency ratio of 17.3% indicates that operating expenses consume a small fraction of revenue, allowing for high profit conversion. The negative NIM is immaterial, confirming that profitability is entirely fee-driven, which insulates Visa from interest rate cycles.
Efficiency Gains Offset Negative NIM
Visa's efficiency ratio improved to 17.3% in 2026Q3 from 24.2% in 2025Q4, while NIM remained near zero, based on reported figures, demonstrating that cost discipline is the key profitability lever.
The negative NIM is a structural artifact of Visa's non-deposit model, not a weakness, as it holds no interest-earning assets. The efficiency ratio's improvement suggests that revenue growth is outpacing expense growth, a sign of operating leverage. However, the recent EPS miss indicates that some costs, possibly litigation or client incentives, may be rising, warranting monitoring of the incentive-to-gross-revenue ratio.
Thin Equity Base Reflects Capital Return
Visa's equity-to-assets ratio fell to 0.37 in 2026Q3 from 0.39 a year earlier, as aggressive buybacks and dividends returned capital, according to recent financial statements, yet ROE remains strong.
The declining equity ratio is a direct result of Visa's capital return program, which returned $6.1B in 2026Q3 alone, exceeding net income. While this boosts ROE, it also reduces the cushion against unexpected losses, though Visa's lack of credit risk mitigates this concern. The negative tangible book value per share is a quirk of accounting for intangible assets, not a sign of financial distress, and should be interpreted with caution.
No Credit Risk, But Litigation Looms
Visa's provision expense averaged $1.8B per quarter, but these are litigation reserves, not loan losses, as the company does not lend, based on SEC filings, posing a potential cash flow risk.
Asset quality metrics like NPLs are not applicable to Visa, as it does not hold a loan portfolio. The provisions are tied to merchant disputes and regulatory matters, which could result in future cash outflows. Investors should monitor the resolution of these litigation items, as they could pressure earnings and cash flow, though they do not reflect credit deterioration.
P/E Misleads Due to Provision Volatility
Visa's P/E is distorted by litigation provisions, which are non-recurring and not indicative of operational performance, so investors should focus on P/B and cash earnings, as reported in financial statements.
The trailing P/E of 35.9 is inflated by one-time charges, such as the $0.46 EPS miss in 2026Q3, which may be due to litigation reserves. A more accurate valuation metric is P/B, which at 18.99 reflects the market's assessment of Visa's franchise value. Additionally, using cash earnings (operating cash flow minus capex) provides a cleaner view of profitability, as it excludes non-cash provisions. This adjustment reveals that Visa's underlying earnings power is stronger than GAAP net income suggests.