Visa Inc
NYSE:V

Watchlist Manager
Visa Inc Logo
Visa Inc
NYSE:V
Watchlist
Price: 309.92 USD 0.01% Market Closed
Market Cap: 609.3B USD
Have any thoughts about
Visa Inc?
Write Note

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Nov 23, 2024.

Estimated DCF Value of one V stock is 191.26 USD. Compared to the current market price of 309.92 USD, the stock is Overvalued by 38%.

V DCF Value
Base Case
191.26 USD
Overvaluation 38%
DCF Value
Price
Worst Case
Base Case
Best Case
191.26
DCF Value
Worst Case
Base Case
Best Case
Hide
DCF Value: 191.26 USD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 112.7B USD. The present value of the terminal value is 266.4B USD. The total present value equals 379.1B USD.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
Hide DCF Settings
Save

DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 379.1B USD
+ Cash & Equivalents 12B USD
+ Investments 5.7B USD
Firm Value 396.8B USD
- Debt 20.8B USD
Equity Value 376B USD
/ Shares Outstanding 2B
V DCF Value 191.26 USD
Overvalued by 38%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
40.2B 58.1B
Operating Income
26.9B 38.6B
FCFF
24.5B 32.6B

See Also

Discover More

What is the DCF value of one V stock?

Estimated DCF Value of one V stock is 191.26 USD. Compared to the current market price of 309.92 USD, the stock is Overvalued by 38%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Visa Inc's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 379.1B USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 191.26 USD per share.

Back to Top
//