Visa: Earnings Beat, High Margins, And Undervalued


  • Visa operates the world’s most popular payment processing network.
  • The company reported solid financial results for Q1 FY23 as it beat both revenue and adjusted earnings growth estimates, despite a tough economy.
  • Visa bought back ~$3 billion in shares in the quarter, which likely shows management is confident about the company’s strategy and stock valuation.
  • Visa is undervalued intrinsically according to my discounted cash flow valuation model.

credit card


Visa (NYSE:V) is one of the greatest financial companies in the world and one of the “big two” card network providers along with Mastercard (MA). The company had over a 52% market share of the payment volume

SEC Filings Upgraded Points

Visa Market share by Payment Volume (SEC Filings Upgraded Points)


Revenue (Q1,FY23)

Transactions and Cross Border

Transactions and Cross Border (Q1,FY23 report)

Jet Fuel Price

Jet Fuel Price (Q1,FY23)

Cross Border 2

Cross Border 2 (Q1,FY23 report)


Visa (Q1,FY23 report)

Tap to Pay

Tap to Pay Sign (NFC world)


Expenses (Q1,FY23 report)

Visa stock valuation 1

Visa stock valuation 1 (created by author Deep Tech Insights)

Data by YCharts
Visa stock valuation 2

Visa stock valuation 2 (created by author Deep Tech Insights)

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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