VISA INC EBITDA vs. Cash and Equivalents

VISA34
  

BRL 56.53  0.36  0.63%   

For VISA INC profitability analysis, we use financial ratios and fundamental drivers that measure the ability of VISA INC to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well VISA INC DRN utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between VISA INC's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of VISA INC DRN over time as well as its relative position and ranking within its peers. Also, please take a look at World Market Map.
  
Please note, there is a significant difference between VISA INC's value and its price as these two are different measures arrived at by different means. Investors typically determine VISA INC value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, VISA INC'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 DRN Cash and Equivalents vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining VISA INC's current stock value. Our valuation model uses many indicators to compare VISA INC value to that of its competitors to determine the firm's financial worth.
VISA INC DRN is rated second in ebitda category among related companies. It is rated first in cash and equivalents category among related companies creating about  0.90  of Cash and Equivalents per EBITDA. The ratio of EBITDA to Cash and Equivalents for VISA INC DRN is roughly  1.11 . Comparative valuation analysis is a catch-all model that can be used if you cannot value VISA INC by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for VISA INC'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 INC's earnings, one of the primary drivers of an investment's value.

VISA34 Cash and Equivalents vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
VISA INC 
EBITDA 
 = 
Revenue 
-  
Basic Expenses 
20.6 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
VISA INC 
Cash 
 = 
Bank Deposits 
+  
Liquidities 
18.52 B
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

VISA34 Cash and Equivalents Comparison

VISA INC is currently under evaluation in cash and equivalents category among related companies.

VISA INC Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in VISA INC, profitability is also one of the essential criteria for including it into their portfolios because, without profit, VISA INC will eventually generate negative long term returns. The profitability progress is the general direction of VISA INC's change in net profit over the period of time. It can combine multiple indicators of VISA INC, 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.
Visa Inc. operates as a payments technology company worldwide. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California. VISA INC operates under Credit Services classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 26500 people.

VISA34 Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on VISA INC. 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 INC 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 INC's important profitability drivers and their relationship over time.

Use VISA INC 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 INC 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 INC will appreciate offsetting losses from the drop in the long position's value.

VISA INC Pair Trading

VISA INC DRN Pair Trading Analysis

The ability to find closely correlated positions to VISA INC 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 INC 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 INC - 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 DRN to buy it.
The correlation of VISA INC 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 INC moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if VISA INC DRN 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 INC 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 INC position

In addition to having VISA INC 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.

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Also, please take a look at World Market Map. Note that the VISA INC DRN information on this page should be used as a complementary analysis to other VISA INC'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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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To fully project VISA INC'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 DRN 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 INC's income statement, its balance sheet, and the statement of cash flows.
Potential VISA INC investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although VISA INC investors may work on each financial statement separately, they are all related. The changes in VISA INC's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on VISA INC'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.