MMarketMath

V

Fast growerQuality: High (90/100)1 red flag

Visa Inc. · Financials · Transaction & Payment Processing Services

$382.41

52w 293.89 – 383.43

20y monthly, adjusted

Mkt cap

$179.5B

P/E

8.6

P/FCF

8.0

FCF yield

12.6%

ROE

52.9%

Shldr yield

13.4%

div 2.7% + bb 10.7%

What today's price assumes

At $179.5B, the market is pricing in -5.1% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 13.3% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $701 · $1,391 · $1,734 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+10.9%

Rev 5y

+12.9%

Rev 10y

+11.2%

EPS 5y

EPS 10y

FCF 5y

+17.3%

FCF 10y

+13.3%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $3.6B
2008: $6.3B
2009: $6.9B
2010: $8.1B
2011: $9.2B
2012: $10.4B
2013: $11.8B
2014: $12.7B
2015: $13.9B
2016: $15.1B
2017: $18.4B
2018: $20.6B
2019: $23.0B
2020: $21.8B
2021: $24.1B
2022: $29.3B
2023: $32.7B
2024: $35.9B
2025: $40.0B
$0$10.0B$20.0B$30.0B$40.0B
07
11
15
19
23

Net income

2007: −$1.1B
2008: $804.0M
2009: $2.4B
2010: $3.0B
2011: $3.6B
2012: $2.1B
2013: $5.0B
2014: $5.4B
2015: $6.3B
2016: $6.0B
2017: $6.7B
2018: $10.3B
2019: $12.1B
2020: $10.9B
2021: $12.3B
2022: $15.0B
2023: $17.3B
2024: $19.7B
2025: $20.1B
$0$10.0B$20.0B
07
11
15
19
23

Free cash flow

2007: $345.0M
2008: $116.0M
2009: $252.0M
2010: $2.5B
2011: $3.5B
2012: $4.6B
2013: $2.6B
2014: $6.7B
2015: $6.2B
2016: $5.1B
2017: $8.6B
2018: $12.2B
2019: $12.0B
2020: $9.7B
2021: $14.5B
2022: $17.9B
2023: $19.7B
2024: $18.7B
2025: $21.6B
$0$10.0B$20.0B
07
11
15
19
23
No data

Margins

0%50%07101316192225
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2007: $0
2008: $13.5B
2009: $3.0B
2010: $1.4B
2011: $2.4B
2012: $1.3B
2013: $6.2B
2014: $5.1B
2015: $4.1B
2016: $1.4B
2017: $8.5B
2018: $9.1B
2019: $10.9B
2020: $10.8B
2021: $11.5B
2022: $14.8B
2023: $15.9B
2024: $20.9B
2025: $22.9B
$0$10.0B$20.0B
07
11
15
19
23

Cash vs long-term debt

$0$10.0B$20.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $8.0B
Q3'23: $8.1B
Q4'23: $8.6B
Q1'24: $8.6B
Q2'24: $8.8B
Q3'24: $8.9B
Q4'24: $9.6B
Q1'25: $9.5B
Q2'25: $9.6B
Q3'25: $10.2B
Q4'25: $10.7B
Q1'26: $10.9B
Q2'26: $11.2B
$0$5.0B$10.0B
23
24
24
25
26

Net income by quarter

Q2'23: $4.3B
Q3'23: $4.2B
Q4'23: $4.7B
Q1'24: $4.9B
Q2'24: $4.7B
Q3'24: $4.9B
Q4'24: $5.3B
Q1'25: $5.1B
Q2'25: $4.6B
Q3'25: $5.3B
Q4'25: $5.1B
Q1'26: $5.9B
Q2'26: $6.0B
$0$2.0B$4.0B$6.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$11.2B+17.1%$6.0B+31.5%$3.0B
Q1'26$10.9B+14.6%$5.9B+14.3%$6.8B
Q4'25 *$10.7B+11.5%$5.1B−4.3%$6.2B
Q3'25$10.2B+14.3%$5.3B+8.2%$6.7B
Q2'25$9.6B+9.3%$4.6B−1.8%$4.7B
Q1'25$9.5B+10.1%$5.1B+4.7%$5.4B
Q4'24 *$9.6B+11.7%$5.3B+13.6%$6.7B
Q3'24$8.9B+9.6%$4.9B+17.2%$5.1B
Q2'24$8.8B+9.9%$4.7B+9.5%$4.5B
Q1'24$8.6B+8.8%$4.9B+17.0%$3.6B
Q4'23 *$8.6B+10.6%$4.7B+18.8%$6.9B
Q3'23$8.1B+11.7%$4.2B+21.8%$5.8B
Q2'23$8.0B+11.1%$4.3B+16.7%$3.9B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+10.9%+12.9%+11.2%+11.3%
Operating cash flow+7.0%+17.2%+13.4%+15.4%
Free cash flow+6.5%+17.3%+13.3%+15.6%
EPS (diluted)
Equity+2.1%+0.9%+2.4%+2.8%
LT debt−1.0%−1.4%+53.4%+53.4%
Diluted shares
Stock price+16.7%+11.6%+17.6%+21.8%

$100, 3 years ago

$159vs $176 in SPY

16.7% vs 20.7%/yr

$100, 5 years ago

$173vs $181 in SPY

11.6% vs 12.6%/yr

$100, 10 years ago

$506vs $412 in SPY

17.6% vs 15.2%/yr

$100, 15 years ago

$1,936vs $813 in SPY

21.8% vs 15.0%/yr

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

40.1%

OCF ÷ (equity + debt)

OCF / EV yield

13.3%

MC vs 10× OCF

0.74

≤1 = priced under 10× OCF

Debt / FCF

0.9y

SBC / FCF

4.2%

Owner earnings

$20.7B

OCF − capex − SBC

OE yield

12.1%

Share count 5y

per year; negative = buybacks

Capital intensity

10.6%

net PP&E ÷ revenue

Sales efficiency

$0.08

new PP&E per $1 new revenue, 5y

Checklist

23 of 24 checks pass · 96%. Checks with structurally missing inputs are excluded.

Growth & Consistency

6/6

  • Revenue growth

    12.9% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    · 5y CAGR ≥ 5%

    na
  • FCF growth

    17.3% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    8 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    17.2% vs 12.9% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

6/6

  • Net margin

    50.1% · ≥ 8%

    pass
  • Operating margin

    60.0% · ≥ 10%

    pass
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    52.9% · ≥ 12%

    pass
  • Cash ROIC

    40.1% · ≥ 12%

    pass
  • FCF margin

    53.9% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $23.1B vs NI $20.1B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

5/5

  • Debt payable from cash flow

    0.9y · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    88% · cash ≥ 50% of LT debt

    pass
  • Leverage

    0.52 · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $37.9B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    2% · interest ≤ 15% of operating income

    pass

Capital Allocation

2/3

  • Share count flat or shrinking

    · ≤ +0.5%/yr over ~5y

    na
  • Stock comp restrained

    4% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    106% · dividends + buybacks ≤ 100% of FCF

    fail
  • Repurchases are a habit

    9 of 10 · buybacks in ≥ 5 of last 10 years

    pass

Valuation Discipline

4/4

  • FCF yield

    12.6% · ≥ 3%

    pass
  • Earnings multiple

    8.6 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    -5.1% vs 13.3% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    13.4% · dividends + buybacks ≥ 2% of market cap

    pass

Red flags

Mechanical checks — a flag is a question to investigate, not a verdict

Distributions exceed FCF

Dividends plus buybacks exceeded free cash flow in the latest fiscal year.

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202540,00023,99420,05823,0591,48221,5774,63418,31689717,16419,60237,909
202435,92623,59519,74319,9501,25718,6934,21716,71385011,97520,83639,137
202332,65321,00017,27320,7551,05919,6963,75112,10176516,28620,46338,733
202229,31018,81314,95718,84997017,8793,20311,58960215,68920,20035,581
202124,10515,80412,31115,22770514,5222,7988,67654216,48719,97837,589
202021,84614,08110,86610,4407369,7042,6648,11441616,28921,07136,210
201922,97715,00112,08012,78475612,0282,2698,6074077,83816,72934,684
201820,60912,95410,30112,94171812,2231,9187,1923278,16216,63034,006
201718,35812,1446,6999,3177078,6101,5796,8912359,87416,61832,760
201615,0827,8835,9915,5745235,0511,3502215,61915,88232,912
201513,8809,0646,3286,5844146,1701,1772,9101873,518029,842
201412,7027,6975,4387,2055536,6521,0064,1181721,97127,413
201311,7787,2394,9803,0224712,5518645,3651792,18626,870
201210,4212,1392,1445,0093764,6335957101472,07427,630
20119,1885,4563,6503,8723533,5194232,0241542,12726,437
20108,0654,5892,9662,6912412,4503681,0001313,8673225,011
20096,9113,5382,3535583062523182,6461154,6174423,189
20086,2631,2328045314151169313,446744,9795521,141
20073,590-1,449-1,076505160345000275-501

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.