Morningstar Rating
Stock XNYS Rating as of
$262.47 −4.12(1.55%)
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Company Report
Company Report
Visa and Mastercard: Judge May Not Approve Settlement
Brett Horn
In March, Visa and Mastercard announced that they had reached a settlement to a long-standing antitrust lawsuit. As part of the agreement, the networks would slightly lower credit interchange fees and cap these fees at the current level for five years. At the time, we were happy to see this lawsuit seemingly resolved. But according to The Wall Street Journal, the judge has now informed Visa and Mastercard that she deems these changes inadequate and is unlikely to approve the settlement. This would presumably force the networks to arrange a new settlement or go to trial. While this is an obvious setback and we would prefer to see this matter closed as quickly as possible, we believe Visa and Mastercard’s unique competitive positions and their wide moats create ongoing legal and regulatory event risk, and this lawsuit represents just one piece of that. We will maintain our $272 and $451 fair value estimates for Visa and Mastercard, respectively, and see shares for both companies as about fairly valued.
Price vs Fair Value
Price vs Fair Value
V is trading at a 838% premium.
Price
$262.47
Fair Value
$394.00
Uncertainty
Medium
- 1-Star Price
- $773.70
- 5-Star Price
- $383.60
- Economic Moat
- Cdtr
- Capital Allocation
- Kgkjgnr
Bulls Say, Bears Say
Bulls Say, Bears Say
Bulls
Visa has commanding market share in a scalable industry.
Bears
Visa’s leading market share creates more opportunities for loss than gain.
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News
News
- Visa Expands Payment Options for Amazon Customers with Installments Plans
- Visa Brings Travelers Peace of Mind with New Digital Card Replacement
- What a legal snag in landmark merchant suit could mean for Visa and Mastercard
- Visa, Mastercard Swipe-Fee Deal With Retailers May Be Rejected, Bloomberg Reports
- Visa Celebrates the Power of Small Steps With Pharrell Williams, Sky Brown, Iga Świątek, Daniel Ricciardo, and More
- Visa Relaunches SavingsEdge™ with New Offers to Deliver Greater Value to Small Businesses
- Visa Releases Third Annual Money Travels: 2024 Digital Remittances Adoption Report
- Visa Issues 10 Billionth Token, Generating $40 Billion in Incremental E-commerce Globally
Trading Information
Trading Information
- Previous Close Price
- $266.59
- Day Range
$261.25–268.60
- 52-Week Range
$227.68–290.96
- Bid/Ask
- $262.47/$262.75
- Market Cap
- $528.49 Bil
- Volume/Avg
- 14.0 Mil/7.9 Mil
Key Statistics
Key Statistics
- Price/Earnings (Normalized)
- 27.89
- Price/Sales
- 15.81
- Dividend Yield (Trailing)
- 0.77%
- Dividend Yield (Forward)
- 0.79%
- Total Yield
- 3.21%
Company Profile
Company Profile
Visa is the largest payment processor in the world. In fiscal 2023, it processed almost $15 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.
- Sector
- Financial Services
- Industry
- Credit Services
- Stock Style Box
- Large Growth
- Total Number of Employees
- 28,800
- Website
- https://www.usa.visa.com
Competitors
Competitors
- American Express Co AXP
- Mastercard Inc Class A MA
- Discover Financial Services DFS
Valuation
Valuation
| Metric | V | AXP | MA |
|---|---|---|---|
Price/Earnings (Normalized) | 27.89 | 19.07 | 34.55 |
Price/Book Value | 13.81 | 5.79 | 56.72 |
Price/Sales | 15.81 | 2.73 | 16.15 |
Price/Cash Flow | 16.44 | 10.95 | 28.47 |
Price/Earnings
V
AXP
MA
Financial Strength
Financial Strength
| Metric | V | AXP | MA |
|---|---|---|---|
Quick Ratio | 1.00 | — | 0.70 |
Current Ratio | 1.40 | — | 1.09 |
Interest Coverage | 36.23 | — | 25.19 |
Quick Ratio
V
AXP
MA
Profitability
Profitability
| Metric | V | AXP | MA |
|---|---|---|---|
Return on Assets (Normalized) | 21.51% | 3.77% | 29.66% |
Return on Equity (Normalized) | 49.69% | 34.77% | 191.94% |
Return on Invested Capital (Normalized) | 33.22% | — | 57.01% |
Return on Assets
V
AXP
MA
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Credit Services Industry Comparables
Credit Services Industry Comparables
| 1-Day Chart | Name | Price | Morningstar Rating for Stocks | Capital Allocation | Economic Moat | Market Cap |
|---|---|---|---|---|---|---|
| Mastercard Inc Class A MA | Msvxymnk | Psdk | $410.1 Bil | |||
| American Express Co AXP | Kngvsqsfh | Gnfjn | $166.6 Bil | |||
| PayPal Holdings Inc PYPL | Hvwyqqr | Gkrvzy | $60.7 Bil | |||
| Capital One Financial Corp COF | Phzdfkjt | Hmydpw | $52.9 Bil | |||
| Discover Financial Services DFS | Xnxyhscrb | Rbcvsl | $32.8 Bil | |||
| Synchrony Financial SYF | Lkpkqhvk | Fnsg | $18.9 Bil | |||
| Ally Financial Inc ALLY | Bcfcskkc | Txdq | $12.1 Bil | |||
| SoFi Technologies Inc Ordinary Shares SOFI | Lzqlbwgz | Xpy | $7.0 Bil | |||
| The Western Union Co WU | Ydqpctq | Tcjxw | $4.2 Bil |
