Visa: Current Upside Is Limited, But A Strong Idea Long-Term

Summary:

  • The company’s fair value by the historical method is 29x earnings.
  • The current price upside based on technical analysis does not exceed 5.5%.
  • Visa has significant levels of net margin of 55% and return on equity of 50%.
  • Earnings-per-share is expected to grow 13-14% with acceleration in 2028, and revenue growth is projected to be more stable.
  • The global card market is expected to grow at a 7.9% CAGR over the next 4 years, reaching $458b.

VISA Credit Card Wallet

FinkAvenue

I have been a long-term shareholder of Visa (NYSE: NYSE:V, NEOE:VISA: CA) and I am starting to cover the stock on Seeking Alpha with a Hold rating. Quantitative analysis has shown that the company has significant competitive


Analyst’s Disclosure: I/we have a beneficial long position in the shares of V either through stock ownership, options, or other derivatives. 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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