Intrinsic value of VISA Cl A - V

Previous Close

$150.05

  Intrinsic Value

$138.26

stock screener

  Rating & Target

hold

-8%

Previous close

$150.05

 
Intrinsic value

$138.26

 
Up/down potential

-8%

 
Rating

hold

We calculate the intrinsic value of V stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 266.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  14.80
  13.82
  12.94
  12.14
  11.43
  10.79
  10.21
  9.69
  9.22
  8.80
  8.42
  8.08
  7.77
  7.49
  7.24
  7.02
  6.82
  6.63
  6.47
  6.32
  6.19
  6.07
  5.97
  5.87
  5.78
  5.70
  5.63
  5.57
  5.51
  5.46
Revenue, $m
  21,075
  23,988
  27,091
  30,381
  33,854
  37,505
  41,334
  45,338
  49,517
  53,873
  58,408
  63,125
  68,028
  73,124
  78,420
  83,923
  89,643
  95,590
  101,776
  108,212
  114,912
  121,890
  129,160
  136,740
  144,646
  152,896
  161,509
  170,505
  179,905
  189,730
Variable operating expenses, $m
  9,417
  10,125
  10,879
  11,678
  12,522
  13,410
  14,340
  15,313
  16,328
  17,387
  14,193
  15,339
  16,531
  17,769
  19,056
  20,393
  21,783
  23,228
  24,731
  26,295
  27,923
  29,619
  31,386
  33,228
  35,149
  37,154
  39,246
  41,432
  43,717
  46,104
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  9,417
  10,125
  10,879
  11,678
  12,522
  13,410
  14,340
  15,313
  16,328
  17,387
  14,193
  15,339
  16,531
  17,769
  19,056
  20,393
  21,783
  23,228
  24,731
  26,295
  27,923
  29,619
  31,386
  33,228
  35,149
  37,154
  39,246
  41,432
  43,717
  46,104
Operating income, $m
  11,658
  13,863
  16,212
  18,703
  21,331
  24,096
  26,994
  30,025
  33,189
  36,486
  44,215
  47,785
  51,497
  55,355
  59,364
  63,530
  67,860
  72,362
  77,044
  81,917
  86,988
  92,271
  97,775
  103,513
  109,497
  115,743
  122,263
  129,073
  136,188
  143,626
EBITDA, $m
  16,854
  19,183
  21,665
  24,296
  27,073
  29,993
  33,055
  36,257
  39,599
  43,083
  46,709
  50,481
  54,402
  58,477
  62,712
  67,113
  71,688
  76,444
  81,390
  86,537
  91,895
  97,475
  103,290
  109,351
  115,674
  122,271
  129,159
  136,353
  143,870
  151,728
Interest expense (income), $m
  489
  992
  1,261
  1,548
  1,854
  2,178
  2,521
  2,881
  3,258
  3,652
  4,064
  4,494
  4,940
  5,405
  5,888
  6,391
  6,912
  7,455
  8,018
  8,605
  9,214
  9,848
  10,509
  11,196
  11,913
  12,660
  13,439
  14,252
  15,101
  15,987
  16,913
Earnings before tax, $m
  10,666
  12,601
  14,664
  16,848
  19,153
  21,575
  24,113
  26,767
  29,537
  32,422
  39,721
  42,845
  46,092
  49,467
  52,973
  56,617
  60,405
  64,343
  68,440
  72,703
  77,140
  81,762
  86,578
  91,600
  96,838
  102,304
  108,011
  113,972
  120,201
  126,713
Tax expense, $m
  2,880
  3,402
  3,959
  4,549
  5,171
  5,825
  6,511
  7,227
  7,975
  8,754
  10,725
  11,568
  12,445
  13,356
  14,303
  15,287
  16,309
  17,373
  18,479
  19,630
  20,828
  22,076
  23,376
  24,732
  26,146
  27,622
  29,163
  30,772
  32,454
  34,212
Net income, $m
  7,786
  9,199
  10,705
  12,299
  13,982
  15,750
  17,603
  19,540
  21,562
  23,668
  28,997
  31,277
  33,647
  36,111
  38,670
  41,331
  44,096
  46,971
  49,961
  53,073
  56,312
  59,686
  63,202
  66,868
  70,692
  74,682
  78,848
  83,200
  87,747
  92,500

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  70,960
  80,766
  91,216
  102,293
  113,985
  126,280
  139,171
  152,653
  166,726
  181,392
  196,660
  212,541
  229,050
  246,209
  264,039
  282,568
  301,828
  321,853
  342,679
  364,350
  386,909
  410,403
  434,884
  460,405
  487,024
  514,802
  543,802
  574,091
  605,740
  638,823
Adjusted assets (=assets-cash), $m
  70,960
  80,766
  91,216
  102,293
  113,985
  126,280
  139,171
  152,653
  166,726
  181,392
  196,660
  212,541
  229,050
  246,209
  264,039
  282,568
  301,828
  321,853
  342,679
  364,350
  386,909
  410,403
  434,884
  460,405
  487,024
  514,802
  543,802
  574,091
  605,740
  638,823
Revenue / Adjusted assets
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
Average production assets, $m
  26,997
  30,728
  34,704
  38,918
  43,366
  48,044
  52,949
  58,078
  63,432
  69,012
  74,821
  80,863
  87,144
  93,672
  100,455
  107,505
  114,833
  122,451
  130,375
  138,619
  147,202
  156,141
  165,455
  175,164
  185,292
  195,860
  206,893
  218,417
  230,458
  243,045
Working capital, $m
  -4,236
  -4,821
  -5,445
  -6,107
  -6,805
  -7,539
  -8,308
  -9,113
  -9,953
  -10,829
  -11,740
  -12,688
  -13,674
  -14,698
  -15,762
  -16,868
  -18,018
  -19,214
  -20,457
  -21,751
  -23,097
  -24,500
  -25,961
  -27,485
  -29,074
  -30,732
  -32,463
  -34,271
  -36,161
  -38,136
Total debt, $m
  23,359
  28,674
  34,338
  40,342
  46,679
  53,343
  60,330
  67,637
  75,264
  83,213
  91,489
  100,096
  109,044
  118,344
  128,008
  138,051
  148,490
  159,343
  170,631
  182,377
  194,603
  207,337
  220,606
  234,439
  248,866
  263,922
  279,640
  296,056
  313,210
  331,141
Total liabilities, $m
  38,460
  43,775
  49,439
  55,443
  61,780
  68,444
  75,431
  82,738
  90,365
  98,314
  106,590
  115,197
  124,145
  133,445
  143,109
  153,152
  163,591
  174,444
  185,732
  197,478
  209,704
  222,438
  235,707
  249,540
  263,967
  279,023
  294,741
  311,157
  328,311
  346,242
Total equity, $m
  32,499
  36,991
  41,777
  46,850
  52,205
  57,836
  63,740
  69,915
  76,360
  83,077
  90,070
  97,344
  104,905
  112,764
  120,930
  129,416
  138,237
  147,409
  156,947
  166,872
  177,204
  187,964
  199,177
  210,866
  223,057
  235,779
  249,061
  262,934
  277,429
  292,581
Total liabilities and equity, $m
  70,959
  80,766
  91,216
  102,293
  113,985
  126,280
  139,171
  152,653
  166,725
  181,391
  196,660
  212,541
  229,050
  246,209
  264,039
  282,568
  301,828
  321,853
  342,679
  364,350
  386,908
  410,402
  434,884
  460,406
  487,024
  514,802
  543,802
  574,091
  605,740
  638,823
Debt-to-equity ratio
  0.720
  0.780
  0.820
  0.860
  0.890
  0.920
  0.950
  0.970
  0.990
  1.000
  1.020
  1.030
  1.040
  1.050
  1.060
  1.070
  1.070
  1.080
  1.090
  1.090
  1.100
  1.100
  1.110
  1.110
  1.120
  1.120
  1.120
  1.130
  1.130
  1.130
Adjusted equity ratio
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458
  0.458

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  7,786
  9,199
  10,705
  12,299
  13,982
  15,750
  17,603
  19,540
  21,562
  23,668
  28,997
  31,277
  33,647
  36,111
  38,670
  41,331
  44,096
  46,971
  49,961
  53,073
  56,312
  59,686
  63,202
  66,868
  70,692
  74,682
  78,848
  83,200
  87,747
  92,500
Depreciation, amort., depletion, $m
  5,196
  5,320
  5,453
  5,593
  5,741
  5,897
  6,061
  6,232
  6,410
  6,596
  2,494
  2,695
  2,905
  3,122
  3,349
  3,584
  3,828
  4,082
  4,346
  4,621
  4,907
  5,205
  5,515
  5,839
  6,176
  6,529
  6,896
  7,281
  7,682
  8,101
Funds from operations, $m
  12,982
  14,519
  16,157
  17,892
  19,723
  21,647
  23,664
  25,772
  27,972
  30,264
  31,491
  33,972
  36,552
  39,233
  42,019
  44,914
  47,923
  51,052
  54,307
  57,693
  61,219
  64,891
  68,717
  72,707
  76,868
  81,210
  85,744
  90,480
  95,429
  100,602
Change in working capital, $m
  -546
  -585
  -624
  -661
  -698
  -734
  -770
  -805
  -840
  -876
  -911
  -948
  -986
  -1,024
  -1,064
  -1,106
  -1,150
  -1,195
  -1,243
  -1,294
  -1,347
  -1,403
  -1,461
  -1,524
  -1,589
  -1,658
  -1,731
  -1,808
  -1,889
  -1,975
Cash from operations, $m
  13,528
  15,105
  16,781
  18,554
  20,421
  22,381
  24,433
  26,577
  28,812
  31,140
  32,402
  34,920
  37,538
  40,257
  43,083
  46,020
  49,073
  52,248
  55,550
  58,987
  62,566
  66,294
  70,179
  74,230
  78,457
  82,869
  87,476
  92,288
  97,318
  102,577
Maintenance CAPEX, $m
  -784
  -900
  -1,024
  -1,157
  -1,297
  -1,446
  -1,601
  -1,765
  -1,936
  -2,114
  -2,300
  -2,494
  -2,695
  -2,905
  -3,122
  -3,349
  -3,584
  -3,828
  -4,082
  -4,346
  -4,621
  -4,907
  -5,205
  -5,515
  -5,839
  -6,176
  -6,529
  -6,896
  -7,281
  -7,682
New CAPEX, $m
  -3,481
  -3,731
  -3,976
  -4,214
  -4,448
  -4,678
  -4,904
  -5,129
  -5,354
  -5,580
  -5,809
  -6,042
  -6,281
  -6,528
  -6,784
  -7,050
  -7,328
  -7,618
  -7,924
  -8,245
  -8,583
  -8,939
  -9,314
  -9,710
  -10,127
  -10,568
  -11,033
  -11,524
  -12,041
  -12,587
Cash from investing activities, $m
  -4,265
  -4,631
  -5,000
  -5,371
  -5,745
  -6,124
  -6,505
  -6,894
  -7,290
  -7,694
  -8,109
  -8,536
  -8,976
  -9,433
  -9,906
  -10,399
  -10,912
  -11,446
  -12,006
  -12,591
  -13,204
  -13,846
  -14,519
  -15,225
  -15,966
  -16,744
  -17,562
  -18,420
  -19,322
  -20,269
Free cash flow, $m
  9,263
  10,474
  11,781
  13,182
  14,675
  16,258
  17,927
  19,682
  21,522
  23,446
  24,293
  26,384
  28,561
  30,825
  33,177
  35,622
  38,162
  40,802
  43,545
  46,397
  49,362
  52,448
  55,660
  59,005
  62,491
  66,124
  69,914
  73,868
  77,996
  82,308
Issuance/(repayment) of debt, $m
  4,992
  5,315
  5,664
  6,004
  6,337
  6,664
  6,987
  7,307
  7,627
  7,949
  8,275
  8,607
  8,948
  9,300
  9,664
  10,043
  10,439
  10,853
  11,288
  11,745
  12,227
  12,734
  13,269
  13,833
  14,428
  15,055
  15,718
  16,417
  17,154
  17,931
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  4,992
  5,315
  5,664
  6,004
  6,337
  6,664
  6,987
  7,307
  7,627
  7,949
  8,275
  8,607
  8,948
  9,300
  9,664
  10,043
  10,439
  10,853
  11,288
  11,745
  12,227
  12,734
  13,269
  13,833
  14,428
  15,055
  15,718
  16,417
  17,154
  17,931
Total cash flow (excl. dividends), $m
  14,255
  15,789
  17,445
  19,186
  21,012
  22,922
  24,914
  26,990
  29,149
  31,395
  32,568
  34,992
  37,509
  40,124
  42,841
  45,665
  48,601
  51,655
  54,833
  58,142
  61,589
  65,182
  68,929
  72,838
  76,918
  81,180
  85,632
  90,285
  95,150
  100,239
Retained Cash Flow (-), $m
  -4,214
  -4,491
  -4,786
  -5,073
  -5,355
  -5,631
  -5,904
  -6,175
  -6,445
  -6,717
  -6,993
  -7,273
  -7,561
  -7,858
  -8,166
  -8,487
  -8,821
  -9,171
  -9,539
  -9,925
  -10,332
  -10,760
  -11,212
  -11,689
  -12,192
  -12,722
  -13,282
  -13,872
  -14,495
  -15,152
Prev. year cash balance distribution, $m
  4,475
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  14,516
  11,297
  12,659
  14,113
  15,658
  17,290
  19,010
  20,815
  22,704
  24,678
  25,575
  27,718
  29,948
  32,266
  34,675
  37,179
  39,780
  42,484
  45,294
  48,217
  51,257
  54,422
  57,717
  61,149
  64,727
  68,457
  72,350
  76,412
  80,655
  85,087
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  13,917
  10,342
  11,017
  11,621
  12,137
  12,548
  12,843
  13,010
  13,042
  12,938
  12,145
  11,828
  11,387
  10,832
  10,180
  9,448
  8,655
  7,824
  6,974
  6,127
  5,302
  4,516
  3,783
  3,114
  2,518
  1,997
  1,553
  1,182
  880
  641
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Visa Inc. (Visa) is a payments technology company that connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments. The Company operates through payment services segment. The Company enables global commerce through the transfer of value and information among the participants. The Company's transaction processing network facilitates authorization, clearing and settlement of payment transactions and enables to provide its financial institution and merchant clients a range of products, platforms and value-added services. The Company is a retail electronic payment network based on payments volume, number of transactions and number of cards in circulation. Its products/services include core products, processing infrastructure, transaction processing services, digital products, merchant products, and risk products and payment security initiatives.

FINANCIAL RATIOS  of  VISA Cl A (V)

Valuation Ratios
P/E Ratio 50.9
Price to Sales 18.6
Price to Book 10.4
Price to Tangible Book
Price to Cash Flow 37.1
Price to Free Cash Flow 40.1
Growth Rates
Sales Growth Rate 21.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 35.2%
Cap. Spend. - 3 Yr. Gr. Rate 5%
Financial Strength
Quick Ratio 8
Current Ratio 0.2
LT Debt to Equity 50.7%
Total Debt to Equity 56.1%
Interest Coverage 25
Management Effectiveness
Return On Assets 10.6%
Ret/ On Assets - 3 Yr. Avg. 13%
Return On Total Capital 13.4%
Ret/ On T. Cap. - 3 Yr. Avg. 16.9%
Return On Equity 20.4%
Return On Equity - 3 Yr. Avg. 20.5%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 69.4%
EBITDA Margin - 3 Yr. Avg. 65.5%
Operating Margin 66.2%
Oper. Margin - 3 Yr. Avg. 61.2%
Pre-Tax Margin 63.7%
Pre-Tax Margin - 3 Yr. Avg. 60.5%
Net Profit Margin 36.5%
Net Profit Margin - 3 Yr. Avg. 40.6%
Effective Tax Rate 42.7%
Eff/ Tax Rate - 3 Yr. Avg. 32.5%
Payout Ratio 23.6%

V stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the V stock intrinsic value calculation we used $18358 million for the last fiscal year's total revenue generated by VISA Cl A. The default revenue input number comes from 0001 income statement of VISA Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our V stock valuation model: a) initial revenue growth rate of 14.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for V is calculated based on our internal credit rating of VISA Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of VISA Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of V stock the variable cost ratio is equal to 47.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for V stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for VISA Cl A.

Corporate tax rate of 27% is the nominal tax rate for VISA Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the V stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for V are equal to 128.1%.

Life of production assets of 80.6 years is the average useful life of capital assets used in VISA Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for V is equal to -20.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $32760 million for VISA Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1776.66 million for VISA Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of VISA Cl A at the current share price and the inputted number of shares is $266.6 billion.

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COMPANY NEWS

▶ Former First Data exec takes reins at metro Atlanta-based tech company   [Sep-20-18 02:31PM  American City Business Journals]
▶ [$$] Mastercard, Visa Agree to Settle Merchant Antitrust Suit   [Sep-18-18 08:19PM  The Wall Street Journal]
▶ Business Highlights   [05:31PM  Associated Press]
▶ Square Stock Isnt That Attractive Anymore   [Sep-13-18 11:27AM  InvestorPlace]
▶ Why Visa Could Keep Beating the S&P 500   [Sep-12-18 03:43PM  GuruFocus.com]
▶ How a Stetson University program is creating next-gen investors   [05:15PM  American City Business Journals]
▶ Visa Inc. to Participate in Upcoming Investor Conferences   [Sep-07-18 04:05PM  Business Wire]
▶ Visa Taps into Fashion   [08:00AM  Business Wire]
▶ Visa Falls 3.02%   [Sep-05-18 02:18PM  Investing.com]
▶ Fintech Varo Money gets preliminary approval to start first mobile-only national bank   [Sep-04-18 05:33PM  American City Business Journals]
▶ 4 Growth Stocks to Buy Instead of iQiyi   [02:43PM  InvestorPlace]
▶ 3 Payment Stocks to Gain From Solid Retail Sales   [Aug-30-18 12:00PM  InvestorPlace]
▶ Better Buy: Visa Inc. vs. Square   [08:03AM  Motley Fool]
▶ [$$] TSB delays moving millions of customers to new debit card   [Aug-26-18 09:01PM  Financial Times]
▶ Facebook poaches HPs top marketing executive to take over as CMO   [Aug-24-18 10:00AM  American City Business Journals]
▶ Allianz Global Investors: What Makes This A Top Portfolio   [Aug-23-18 01:05PM  Investor's Business Daily]
▶ Visa Makes Strategic Investment in Paidy   [Aug-22-18 08:35PM  PR Newswire]
▶ New app simplifies paying for business expenses   [Aug-20-18 01:18PM  Yahoo Finance Video]
▶ Yahoo Finance Live: Midday Movers - Aug 20th, 2018   [09:25AM  Yahoo Finance Video]
▶ 10 Dividend Aristocrats You Never Have to Worry About   [Aug-17-18 03:38PM  InvestorPlace]
▶ 10 A-Rated Blue-Chip Stocks to Buy   [03:03PM  InvestorPlace]
▶ At US$141, Is Visa Inc (NYSE:V) A Buy?   [07:26AM  Simply Wall St.]
▶ FBI warns of coming attack on global ATMs   [01:49PM  Yahoo Finance Video]
▶ Top 10 Largest Global IPOs Of All Time   [Aug-13-18 01:44PM  Investopedia]
▶ PRESS DIGEST- Financial Times - Aug 13   [Aug-12-18 08:16PM  Reuters]
▶ 5 Companies Making Giant Buybacks   [Aug-08-18 10:15AM  InvestorPlace]
▶ Visa's Strong Third-Quarter Earnings   [12:54PM  Motley Fool]
▶ How Do Visa and Mastercard Make Money?   [12:43PM  Motley Fool]
▶ Indexes Gather Steam As PepsiCo Stock Climbs Past A Buy Point   [01:36PM  Investor's Business Daily]
▶ Visa Renews Olympic Partnership Through 2032   [08:00AM  Business Wire]
▶ [$$] Kroger Unit Wont Take Visa Credit Cards in California Stores   [Jul-30-18 07:44PM  The Wall Street Journal]

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