Visa Profitability Analysis

V
 Stock
  

USD 213.32  2.55  1.18%   

For Visa profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Visa to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Visa Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Visa's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Visa Inc over time as well as its relative position and ranking within its peers. Also, please take a look at World Market Map.
  
Sales per Share is likely to climb to 12.03 in 2022, whereas Price to Sales Ratio is likely to drop 9.47 in 2022. Visa Consolidated Income is fairly stable at the moment as compared to the past year. Visa reported Consolidated Income of 5.39 Billion in 2021. Net Income Common Stock is likely to climb to about 5.8 B in 2022, whereas Accumulated Other Comprehensive Income is likely to drop (540.6 M) in 2022.

Visa Revenues

18.05 Billion

Is Visa's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Visa. If investors know Visa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Visa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.36
Market Capitalization
455.7 B
Quarterly Revenue Growth YOY
0.19
Return On Assets
0.14
Return On Equity
0.4
The market value of Visa Inc is measured differently than its book value, which is the value of Visa that is recorded on the company's balance sheet. Investors also form their own opinion of Visa's value that differs from its market value or its book value, called intrinsic value, which is Visa's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Visa's market value can be influenced by many factors that don't directly affect Visa's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Visa's value and its price as these two are different measures arrived at by different means. Investors typically determine Visa value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Visa's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Visa Inc Earnings Per Share vs. Number of Employees Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Visa's current stock value. Our valuation model uses many indicators to compare Visa value to that of its competitors to determine the firm's financial worth.
Visa Inc is rated second in number of employees category among related companies. It is rated second in earnings per share category among related companies . The ratio of Number of Employees to Earnings Per Share for Visa Inc is about  3,380 . Earnings before Tax is likely to climb to about 7.8 B in 2022, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are likely to drop slightly above 12.5 B in 2022.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Visa by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Visa's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Visa's earnings, one of the primary drivers of an investment's value.

Visa Number of Employees vs. Competition

Visa Inc is rated second in number of employees category among related companies. The total workforce of Credit Services industry is at this time estimated at about 1.22 Million. Visa claims roughly 21,500 in number of employees contributing just under 2% to stocks in Credit Services industry.

Visa Earnings Per Share vs. Number of Employees

Number of Employees shows the total number of permanent full time and part time employees working for a given company and processed through its payroll.
Visa 
Number of Employees 
 = 
Full Time 
+  
Part Time 
21.5 K
Employee typically refers to an individual working under a contract of employment, whether oral or written, express or implied, and has recognized his or her rights and duties. Most officers of corporations are included as employees and contractors are generally excluded.
Earnings per Share (EPS) denotes the portion of a company's earnings that is allocated to each share of common stock. To calculate Earnings per Share investors will need to take a company's net income, subtract any dividends for preferred stock, and divide it by the number of average outstanding shares. EPS is usually presented in two different ways: basic and diluted. Fully diluted Earnings per Share takes into account effects of warrants, options, and convertible securities and is generally viewed by analysts as a more accurate measure.
Visa 
Earnings per Share 
 = 
Earnings 
Average Shares 
6.36 X
Earnings per Share is one of the most critical measures of the firm's current share price and is used by investors to determine the overall company profitability, especially when compared to the EPS of similar companies.

Visa Earnings Per Share Comparison

Visa is currently under evaluation in earnings per share category among related companies.

Visa Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Visa, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Visa will eventually generate negative long term returns. The profitability progress is the general direction of Visa's change in net profit over the period of time. It can combine multiple indicators of Visa, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2022
Accumulated Other Comprehensive Income-526.7 M-540.6 M
Consolidated Income5.4 B5.8 B
Net Income11.1 B8.8 B
Net Income Common Stock5.4 B5.8 B
Net Income to Non Controlling Interests-2.3 M-2.5 M
Operating Income14.2 B11.5 B
Income Tax Expense1.8 B1.5 B
Net Income Per Employee515.3 K485.8 K
Visa Inc. operates as a payments technology company worldwide. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California. Visa operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 21500 people.

Visa Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Visa. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Visa position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Visa's important profitability drivers and their relationship over time.

Visa Profitability Trends

Visa profitability trend refers to the progression of profit or loss within a business. An upward trend means that Visa's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Visa's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Visa Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Visa different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Visa in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Visa's future profitability.

Use Visa in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Visa position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Visa will appreciate offsetting losses from the drop in the long position's value.

Visa Pair Trading

Visa Inc Pair Trading Analysis

The ability to find closely correlated positions to Visa could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Visa when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Visa - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Visa Inc to buy it.
The correlation of Visa is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Visa moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Visa Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Visa can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Visa position

In addition to having Visa in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Synthetics Thematic Idea Now

Synthetics
Synthetics Theme
Companies involved in production of silicon and other synthetic products . The Synthetics theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Synthetics Theme or any other thematic opportunities.
View All  Next Launch
Also, please take a look at World Market Map. Note that the Visa Inc information on this page should be used as a complementary analysis to other Visa's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Complementary Tools for Visa Stock analysis

When running Visa Inc price analysis, check to measure Visa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visa is operating at the current time. Most of Visa's value examination focuses on studying past and present price action to predict the probability of Visa's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Visa's price. Additionally, you may evaluate how the addition of Visa to your portfolios can decrease your overall portfolio volatility.
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
To fully project Visa's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Visa Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Visa's income statement, its balance sheet, and the statement of cash flows.
Potential Visa investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Visa investors may work on each financial statement separately, they are all related. The changes in Visa's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Visa's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.