Visa Revenue vs. EBITDA

VISA34
  

BRL 55.77  0.83  1.47%   

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.
  
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 EBITDA vs. Revenue 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 first in revenue category among related companies. It is rated first in ebitda category among related companies totaling about  0.67  of EBITDA per Revenue. The ratio of Revenue to EBITDA for Visa Inc is roughly  1.50 . 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 Revenue vs. Competition

Visa Inc is rated first in revenue category among related companies. Market size based on revenue of Credit Services industry is at this time estimated at about 131.93 Billion. Visa totals roughly 29.31 Billion in revenue claiming about 22% of stocks in Credit Services industry.

Visa EBITDA vs. Revenue

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Visa 
Revenue 
 = 
Money Received 
Discounts and Returns 
29.31 B
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
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 
EBITDA 
 = 
Revenue 
-  
Basic Expenses 
19.54 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.

Visa EBITDA Comparison

Visa is currently under evaluation in ebitda 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.
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.

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.

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 Heavy Metals Thematic Idea Now

Heavy Metals
Heavy Metals Theme
Companies involved in mining, production, and distribution of various industrial metals and minerals. The Heavy Metals 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 Heavy Metals Theme or any other thematic opportunities.
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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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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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.
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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.