Latest Ratios: P/E Ratio 34.5x · EV/EBITDA 27.0x · ROE 52.1%. (2005–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $675.7B | $671.2B | $557.9B | $479.6B | $379.5B | $487.4B | $444.5B | $390.8B | $349.6B | $252.0B | $199.6B |
| Enterprise Value | $680.7B | $676.2B | $566.7B | $483.7B | $386.2B | $491.9B | $452.9B | $399.7B | $358.0B | $260.5B | $209.9B |
| P/E Ratio → | 34.53 | 33.47 | 28.26 | 27.78 | 25.38 | 39.56 | 40.89 | 32.33 | 33.96 | 37.59 | 33.35 |
| P/S Ratio | 16.89 | 16.78 | 15.53 | 14.69 | 12.95 | 20.22 | 20.35 | 17.01 | 16.96 | 13.73 | 13.24 |
| P/B Ratio | 18.27 | 17.70 | 14.25 | 12.38 | 10.66 | 12.97 | 12.28 | 11.27 | 10.28 | 7.69 | 6.07 |
| P/FCF | 31.31 | 31.11 | 29.84 | 24.35 | 21.22 | 33.56 | 45.81 | 32.49 | 29.14 | 29.65 | 39.52 |
| P/OCF | 29.30 | 29.11 | 27.96 | 23.11 | 20.13 | 32.01 | 42.58 | 30.57 | 27.50 | 27.37 | 35.82 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 16.90 | 15.78 | 14.81 | 13.18 | 20.41 | 20.73 | 17.40 | 17.37 | 14.19 | 13.92 |
| EV / EBITDA | 27.00 | 26.82 | 23.01 | 22.05 | 19.63 | 29.62 | 30.50 | 25.53 | 26.39 | 20.52 | 25.03 |
| EV / EBIT | 28.37 | 27.28 | 23.08 | 22.31 | 20.68 | 29.67 | 31.66 | 25.93 | 26.68 | 21.42 | 24.87 |
| EV / FCF | — | 31.34 | 30.32 | 24.56 | 21.60 | 33.87 | 46.67 | 33.23 | 29.85 | 30.65 | 41.56 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.4% | 80.4% | 80.4% | 79.9% | 80.4% | 79.4% | 79.3% | 81.9% | 81.3% | 82.3% | 81.7% |
| Operating Margin | 60.0% | 60.0% | 65.7% | 64.3% | 64.2% | 65.6% | 64.5% | 65.3% | 62.9% | 66.2% | 52.3% |
| Net Profit Margin | 50.1% | 50.1% | 55.0% | 52.9% | 51.0% | 51.1% | 49.7% | 52.6% | 50.0% | 36.5% | 39.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 52.1% | 52.1% | 50.7% | 46.5% | 40.9% | 33.4% | 30.7% | 35.2% | 30.9% | 20.4% | 19.1% |
| ROA | 20.7% | 20.7% | 21.3% | 19.6% | 17.8% | 15.0% | 14.2% | 17.0% | 15.0% | 10.1% | 11.6% |
| ROIC | 29.2% | 29.2% | 29.7% | 26.9% | 24.2% | 19.9% | 18.8% | 22.0% | 19.1% | 18.2% | 15.0% |
| ROCE | 36.2% | 36.2% | 34.9% | 31.8% | 28.5% | 23.7% | 22.4% | 25.6% | 22.4% | 21.3% | 17.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.66 | 0.66 | 0.53 | 0.53 | 0.63 | 0.56 | 0.68 | 0.48 | 0.49 | 0.56 | 0.48 |
| Debt / EBITDA | 1.00 | 1.00 | 0.85 | 0.93 | 1.14 | 1.26 | 1.66 | 1.07 | 1.23 | 1.45 | 1.89 |
| Net Debt / Equity | — | 0.13 | 0.23 | 0.11 | 0.19 | 0.12 | 0.23 | 0.26 | 0.25 | 0.26 | 0.31 |
| Net Debt / EBITDA | 0.20 | 0.20 | 0.36 | 0.19 | 0.34 | 0.27 | 0.56 | 0.57 | 0.62 | 0.67 | 1.22 |
| Debt / FCF | — | 0.23 | 0.47 | 0.21 | 0.38 | 0.31 | 0.86 | 0.74 | 0.71 | 1.00 | 2.03 |
| Interest Coverage | 42.08 | 42.08 | 38.31 | 33.67 | 34.71 | 32.31 | 27.72 | 28.92 | 21.92 | 21.60 | 19.76 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.28 | 1.45 | 1.45 | 1.75 | 1.91 | 1.56 | 1.61 | 1.90 | 1.78 |
| Quick Ratio | 1.08 | 1.08 | 1.28 | 1.45 | 1.45 | 1.75 | 1.91 | 1.56 | 1.61 | 1.90 | 1.78 |
| Cash Ratio | 0.58 | 0.58 | 0.45 | 0.71 | 0.75 | 1.05 | 1.12 | 0.58 | 0.72 | 0.99 | 0.70 |
| Asset Turnover | — | 0.40 | 0.38 | 0.36 | 0.34 | 0.29 | 0.27 | 0.32 | 0.30 | 0.27 | 0.24 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 23.1% | 23.1% | 21.4% | 21.7% | 21.4% | 22.7% | 24.5% | 18.8% | 18.6% | 23.6% | 22.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 3.0% | 3.5% | 3.6% | 3.9% | 2.5% | 2.4% | 3.1% | 2.9% | 2.7% | 3.0% |
| FCF Yield | 3.2% | 3.2% | 3.4% | 4.1% | 4.7% | 3.0% | 2.2% | 3.1% | 3.4% | 3.4% | 2.5% |
| Buyback Yield | 2.0% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 2.7% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $2.0B | $2.0B | $2.1B | $2.1B | $2.2B | $2.2B | $2.3B | $2.3B | $2.4B | $2.4B |
Regulatory interchange fee caps
According to current market data, Visa trades at a forward P/E of 25.56, which suggests that investors are pricing in sustained double-digit earnings growth despite the potential for regulatory headwinds to compress long-term margins compared to historical averages observed in the broader financial services sector.
The current P/E multiple of 32.96 on a trailing basis indicates a significant premium over traditional financial institutions, justified by the company's asset-light model and lack of credit risk. However, the PEG ratio of 2.08 implies that the market may be overestimating the pace of future earnings expansion, warranting caution regarding the sustainability of this valuation if transaction volume growth moderates.
Based on reported financial statements, Visa's ROIC has fluctuated between 6.6% and 9.1% over the last ten quarters, a trend that appears to be influenced by aggressive share repurchases that reduce the equity base rather than a fundamental decline in the underlying network's ability to generate returns.
While the ROIC figures appear modest in isolation, they must be interpreted in the context of a business that requires minimal physical capital to scale. The divergence between high operating margins and these return metrics suggests that the company's capital allocation strategy, specifically heavy buybacks, is the primary driver of its return profile rather than operational inefficiency.
As reported in recent quarterly filings, Visa's current ratio has declined from 1.45 in 2024Q1 to 1.09 in 2026Q2, indicating a narrowing liquidity cushion that may limit the company's financial flexibility if working capital requirements continue to escalate during periods of high transaction volume volatility.
The consistent decline in the current ratio suggests that management is optimizing for capital efficiency by minimizing cash holdings in favor of shareholder distributions. While this strategy enhances EPS, it leaves the balance sheet with less margin for error should the company face unexpected litigation costs or a sudden shift in the global payments environment.
Based on an analysis of industry-standard ratios, the debt-to-EBITDA metric is frequently misapplied to Visa, as it fails to account for the company's unique ability to generate massive free cash flow without the credit risk exposure inherent in traditional lending institutions like American Express.
Investors often view Visa's rising debt-to-EBITDA ratio as a sign of deteriorating credit quality, yet this ignores the fact that the debt is primarily used to fund share repurchases rather than to support operational losses. A more appropriate metric for this business model would be interest coverage relative to free cash flow, which remains robust and suggests that the current leverage profile is well within manageable limits.
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying V stock.
Visa Inc.'s current P/E ratio is 34.5x. The historical average is 33.7x. This places it at the 72th percentile of its historical range.
Visa Inc.'s current EV/EBITDA is 27.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.5x.
Visa Inc.'s return on equity (ROE) is 52.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 38.5%.
Based on historical data, Visa Inc. is trading at a P/E of 34.5x. This is at the 72th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Visa Inc.'s current dividend yield is 0.67% with a payout ratio of 23.1%.
Visa Inc. has 80.4% gross margin and 60.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Visa Inc.'s Debt/EBITDA ratio is 1.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.