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Visa Inc – Financial Transactions Processing, Reserve, and Clearinghouse Activities
Visa Inc. is an American multinational financial services corporation headquartered in San Francisco, California. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards. Visa is one of the worlds most valuable companies.
Analysis Results
Intrinsic Value $234.96
Latest Price $285.63
Relative Value 22% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.9%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 18.6 17.3
2025 21.2 18.2
2026 24.2 19.3
2027 27.5 20.3
2028 31.3 21.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 547 billion. This corresponds to a present value of 348 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 96.6 billion. Adding in the terminal value gives a total present value of 444 billion.

There are presently 1.89 billion outstanding shares, so the intrinsic value per share is 234.96.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 33,532,000,000
Current Cash 16,286,000,000
Current Liabilities 23,098,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -5,852,000,000
Change in NCWC -1,765,000,000
EBIT 21,927,000,000
Tax Provision 3,764,000,000
Depreciation and Amortization 943,000,000
Capital Expenditure -1,059,000,000
Unlevered Free Cash Flow 16,122,758,663
Current Assets 30,205,000,000
Current Cash 15,689,000,000
Current Liabilities 20,853,000,000
Current Debt 2,250,000,000
Non-Cash Working Capital (NCWC) -4,087,000,000
Change in NCWC -467,000,000
EBIT 19,681,000,000
Tax Provision 3,179,000,000
Depreciation and Amortization 861,000,000
Capital Expenditure -970,000,000
Unlevered Free Cash Flow 15,655,182,013
Current Assets 27,607,000,000
Current Cash 16,487,000,000
Current Liabilities 15,739,000,000
Current Debt 999,000,000
Non-Cash Working Capital (NCWC) -3,620,000,000
Change in NCWC -3,465,000,000
EBIT 15,807,000,000
Tax Provision 3,752,000,000
Depreciation and Amortization 804,000,000
Capital Expenditure -705,000,000
Unlevered Free Cash Flow 8,748,796,551
Current Assets 27,645,000,000
Current Cash 16,289,000,000
Current Liabilities 14,510,000,000
Current Debt 2,999,000,000
Non-Cash Working Capital (NCWC) -155,000,000
Change in NCWC 128,000,000
EBIT 14,092,000,000
Tax Provision 2,924,000,000
Depreciation and Amortization 767,000,000
Capital Expenditure -736,000,000
Unlevered Free Cash Flow 11,262,964,612
Current Assets 20,970,000,000
Current Cash 7,838,000,000
Current Liabilities 13,415,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -283,000,000
Change in NCWC 4,515,000,000
EBIT 15,401,000,000
Tax Provision 2,804,000,000
Depreciation and Amortization 656,000,000
Capital Expenditure -756,000,000
Unlevered Free Cash Flow 16,914,602,257
Current Assets 18,216,000,000
Current Cash 11,709,000,000
Current Liabilities 11,305,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -4,798,000,000
Change in NCWC -2,138,000,000
EBIT 13,561,000,000
Tax Provision 2,505,000,000
Depreciation and Amortization 613,000,000
Capital Expenditure -718,000,000
Unlevered Free Cash Flow 8,665,313,368
Current Assets 19,023,000,000
Current Cash 13,438,000,000
Current Liabilities 9,994,000,000
Current Debt 1,749,000,000
Non-Cash Working Capital (NCWC) -2,660,000,000
Change in NCWC 11,000,000
EBIT 12,163,000,000
Tax Provision 4,995,000,000
Depreciation and Amortization 556,000,000
Capital Expenditure -707,000,000
Unlevered Free Cash Flow 6,827,670,343
Current Assets 14,313,000,000
Current Cash 8,938,000,000
Current Liabilities 8,046,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,671,000,000
Change in NCWC -2,174,000,000
EBIT 9,762,000,000
Tax Provision 2,021,000,000
Depreciation and Amortization 502,000,000
Capital Expenditure -523,000,000
Unlevered Free Cash Flow 5,104,568,397
Current Assets 10,892,000,000
Current Cash 6,015,000,000
Current Liabilities 5,374,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -497,000,000
Change in NCWC -103,000,000
EBIT 9,078,000,000
Tax Provision 2,667,000,000
Depreciation and Amortization 494,000,000
Capital Expenditure -414,000,000
Unlevered Free Cash Flow 6,363,390,661
Current Assets 9,562,000,000
Current Cash 3,950,000,000
Current Liabilities 6,006,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -394,000,000
Change in NCWC 374,000,000
EBIT 8,150,000,000
Tax Provision 2,286,000,000
Depreciation and Amortization 435,000,000
Capital Expenditure -553,000,000
Unlevered Free Cash Flow 5,993,920,766
Current Assets 7,822,000,000
Current Cash 4,255,000,000
Current Liabilities 4,335,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -768,000,000
Change in NCWC -1,783,000,000
EBIT 7,242,000,000
Tax Provision 2,277,000,000
Depreciation and Amortization 397,000,000
Capital Expenditure -471,000,000
Unlevered Free Cash Flow 3,112,706,490
Current Assets 11,786,000,000
Current Cash 2,817,000,000
Current Liabilities 7,954,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,015,000,000
Change in NCWC -1,326,000,000
EBIT 6,239,000,000
Tax Provision 65,000,000
Depreciation and Amortization 333,000,000
Capital Expenditure -376,000,000
Unlevered Free Cash Flow 4,686,250,566

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