The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $14,330 M
Debt : $20,610 M
EBITDA : $25,580 M
Net Debt (Debt - Cash): $6,280 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Financial Services
Industry: Credit Services
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 27.86
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $9,040 M
Average Revenue: $18,275 M
Free Cash Flow to Revenue : 49 %
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-09-30): $35,832 M
Revenue 4 Years Ago (2020-09-30): $21,846 M
Revenue Growth: 13%
Since Revenue Growth is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-09-30): $1,873 M
Share Count 5 Years Ago (2020-09-30): $1,939 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $12.03
Dividend Per Share (DPS): $2
Payout Ratio: 18%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 25%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $335
52-Week Low: $251
Threshold Price (15% Above 52-Week Low): $289
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $668,113 M
Since Market Cap is between 500B - 1 Trillion, 4 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 4% exposure of Total Portfolio.
Value-Trade has assigned 29 points to above Visa Inc. Class A (V) stock.
Twenty Years Avg PE 40, Fair Value PE 15, Industry Based PE is 20 and Growth based PE is 20. Based on these all values average assigned is 23.75.
Value-Trades has assined P/E value 23.75. Since current year earning per share is $12.03.
The fair value of Visa Inc. Class A (V) stock should be (23.75 x $12.03) = $285.71
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