Visa Inc Intrinsic Value – VISA INC Reports Record-Breaking Earnings Results for Third Quarter of FY2023
July 27, 2023
🌥️Earnings Overview
On July 25, 2023, VISA INC ($NYSE:V) announced its financial results for the third quarter of FY2023 ending June 30, 2023. Total revenue for the period amounted to USD 8.1 billion, an increase of 11.5% compared to the same quarter in the prior year. Net income was also up 22.0% year-over-year to USD 4.2 billion.
Market Price
The company’s stock opened at $240.0 and closed at $238.7, a decrease of 0.9% from its prior closing price of 240.7. The decline did not, however, stop VISA INC from recording its highest ever quarterly revenue and net income, the result of strong demand from consumers and businesses across the globe. VISA INC’s impressive results come on the back of its ongoing investment in technology and innovation, which has enabled the company to expand its services globally and drive customer engagement and loyalty. As the demand for digital payments continues to accelerate, VISA INC is well-positioned to capitalize on future opportunities and continue to report strong results for the foreseeable future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Visa Inc. More…
| Total Revenues | Net Income | Net Margin |
| 31.83k | 16.53k | 53.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Visa Inc. More…
| Operations | Investing | Financing |
| 19.7k | -711 | -17.23k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Visa Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 89.23k | 50.25k | 18.7 |
Key Ratios Snapshot
Some of the financial key ratios for Visa Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 11.6% | 12.3% | 65.6% |
| FCF Margin | ROE | ROA |
| 58.6% | 33.7% | 14.6% |
Analysis – Visa Inc Intrinsic Value
At GoodWhale, we have analyzed the financials of VISA INC. Our proprietary Valuation Line algorithm has calculated that the fair value of VISA INC shares is currently around $269.2. However, VISA INC’s stock is currently trading at $238.7, representing a reasonable price which is undervalued by 11.3%. We believe this presents a good investment opportunity for investors who are looking for growth potential and a margin of safety. More…
Peers
In the world of electronic payments, there are four major players: Visa Inc, Mastercard Inc, PayPal Holdings Inc, and American Express Co. All four of these companies are in constant competition with one another to gain market share. While Visa and Mastercard are the traditional giants in the industry, PayPal and American Express have been making inroads in recent years.
– Mastercard Inc ($NYSE:MA)
Mastercard Inc is a technology company that connects consumers, financial institutions, merchants, governments and businesses around the world, enabling them to use secure and convenient electronic transactions. As of 2022, Mastercard Inc has a market cap of 287.75B and a ROE of 110.3%. The company operates in two segments: Global Payment Solutions and Data & Services.
– PayPal Holdings Inc ($NASDAQ:PYPL)
Founded in 1998, PayPal Holdings, Inc. is a technology platform company that enables digital and mobile payments on behalf of consumers and merchants. PayPal has over 300 million active customers and handles over $232 billion in total payment volume on an annual basis. The company operates as a payment processor for online vendors, auction sites, and other commercial users, for which it charges a fee. In addition, PayPal offers a credit product called “Bill Me Later,” which allows customers to finance their online purchases.
– American Express Co ($NYSE:AXP)
American Express Co is a multinational financial services corporation with a market cap of 107.94B as of 2022. The company is headquartered in Three World Financial Center in New York City. American Express Co is best known for its credit card, charge card, and traveler’s cheque businesses.
Summary
Investors in VISA INC saw a 22% increase in net income year-over-year in their third quarter of FY2023, with total revenue of USD 8.1 billion. This is a 11.5% rise from the same quarter in the previous year. The strong quarterly results indicate that the company is performing well and is likely to continue to do so.
With a healthy balance sheet and a strong pipeline of products and services, VISA INC is well positioned to continue to show solid growth into the future. Investors should be confident in the company’s potential and take advantage of these positive results.
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