Price to Book Value (P/BV)
since 2008
Calculation
Visa Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 16, 2022 | 12.18 | = | 210.14 | ÷ | 17.26 | 17.26 | = | 35,581 | ÷ | 2,061,687,546 | |
| Nov 18, 2021 | 11.41 | = | 203.33 | ÷ | 17.83 | 17.83 | = | 37,589 | ÷ | 2,108,549,451 | |
| Nov 19, 2020 | 12.23 | = | 207.57 | ÷ | 16.97 | 16.97 | = | 36,210 | ÷ | 2,133,541,039 | |
| Nov 14, 2019 | 11.17 | = | 179.75 | ÷ | 16.09 | 16.09 | = | 34,684 | ÷ | 2,155,629,545 | |
| Nov 16, 2018 | 9.10 | = | 140.18 | ÷ | 15.41 | 15.41 | = | 34,006 | ÷ | 2,206,760,802 | |
| Nov 17, 2017 | 7.61 | = | 109.82 | ÷ | 14.44 | 14.44 | = | 32,760 | ÷ | 2,268,806,703 | |
| Nov 15, 2016 | 5.59 | = | 78.57 | ÷ | 14.07 | 14.07 | = | 32,912 | ÷ | 2,339,519,893 | |
| Nov 20, 2015 | 6.53 | = | 80.19 | ÷ | 12.28 | 12.28 | = | 29,842 | ÷ | 2,429,472,223 | |
| Nov 21, 2014 | 5.73 | = | 63.56 | ÷ | 11.08 | 11.08 | = | 27,413 | ÷ | 2,473,017,076 | |
| Nov 22, 2013 | 4.79 | = | 50.53 | ÷ | 10.55 | 10.55 | = | 26,870 | ÷ | 2,546,194,415 | |
| Nov 16, 2012 | 3.45 | = | 35.68 | ÷ | 10.34 | 10.34 | = | 27,630 | ÷ | 2,673,429,711 | |
| Nov 18, 2011 | 2.36 | = | 22.70 | ÷ | 9.62 | 9.62 | = | 26,437 | ÷ | 2,749,075,937 | |
| Nov 19, 2010 | 2.21 | = | 19.26 | ÷ | 8.73 | 8.73 | = | 25,011 | ÷ | 2,866,468,592 | |
| Nov 20, 2009 | 2.56 | = | 20.00 | ÷ | 7.81 | 7.81 | = | 23,189 | ÷ | 2,970,508,130 | |
| Nov 21, 2008 | 1.70 | = | 11.60 | ÷ | 6.81 | 6.81 | = | 21,141 | ÷ | 3,103,771,256 |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Visa Inc. Annual Report.
The financial trajectory between 2008 and 2022 is characterized by a substantial expansion in market valuation relative to book value. This growth is marked by a consistent increase in the Price to Book Value (P/BV) ratio, which ascended from 1.70 in November 2008 to 12.18 by November 2022.
- Share Price Appreciation
- A strong upward trend is evident in the share price, which rose from US$ 11.60 in 2008 to US$ 210.14 in 2022. The growth was particularly accelerated between 2017 and 2020, during which the price nearly doubled from US$ 109.82 to US$ 207.57.
- Book Value per Share (BVPS) Growth
- The BVPS exhibited a steady, linear progression, increasing from US$ 6.81 in 2008 to a peak of US$ 17.83 in 2021, before a slight correction to US$ 17.26 in 2022. The growth in book value was consistent but occurred at a significantly slower pace than the growth in market price.
- Price to Book Value (P/BV) Dynamics
- The P/BV ratio experienced three distinct phases. From 2008 to 2011, the ratio remained relatively low, fluctuating between 1.70 and 2.36. A period of rapid expansion occurred between 2012 and 2019, where the ratio climbed from 3.45 to 11.17. From 2020 to 2022, the ratio stabilized at a high premium, fluctuating within a narrow range between 11.41 and 12.23.
The widening gap between the share price and the book value per share suggests that the market has increasingly valued the entity based on intangible assets, brand equity, or future growth expectations rather than its tangible accounting value. The stability of the P/BV ratio above 11.00 since 2019 indicates a sustained high market premium.
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Comparison to Competitors
Visa Inc., P/BV, long-term trends, comparison to competitors
| Visa Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 16, 2022 | 12.18 | 7.13 | 11.22 | 2.67 | 18.46 | 17.39 | 5.34 | 7.20 | 12.38 | — | 6.94 | 252.00 | 3.37 | 18.36 | 9.24 | 12.68 |
| Nov 18, 2021 | 11.41 | 11.06 | 15.94 | 7.83 | 13.68 | 48.66 | 5.90 | 15.71 | 15.16 | 41.57 | 10.48 | 71.88 | 4.73 | 30.36 | 10.50 | 18.38 |
| Nov 19, 2020 | 12.23 | 8.51 | 16.53 | — | 14.90 | 31.25 | 5.24 | 17.71 | 13.11 | 14.01 | 28.60 | 20.61 | 4.48 | 40.91 | 7.57 | 15.54 |
| Nov 14, 2019 | 11.17 | 8.15 | 16.03 | — | 9.51 | 16.83 | 6.04 | 20.00 | 10.30 | 8.59 | — | 12.91 | 7.66 | 31.48 | 5.16 | 21.26 |
| Nov 16, 2018 | 9.10 | 9.44 | 12.76 | — | 12.50 | — | 7.40 | 24.12 | 10.02 | 3.84 | — | 22.92 | 9.93 | 39.03 | 3.68 | 18.62 |
| Nov 17, 2017 | 7.61 | 10.08 | 11.50 | — | 11.49 | — | 8.20 | 26.72 | 7.69 | 3.90 | — | 17.37 | 7.78 | 48.15 | 3.99 | 14.93 |
| Nov 15, 2016 | 5.59 | 9.83 | 7.37 | — | 11.10 | — | 9.30 | 24.96 | 6.08 | 3.49 | — | 16.91 | 9.45 | 37.73 | 2.81 | 12.36 |
| Nov 20, 2015 | 6.53 | 11.33 | 6.35 | — | 4.61 | — | 8.92 | 10.00 | 4.66 | 3.66 | — | 32.11 | 10.57 | 15.42 | 2.20 | 13.98 |
| Nov 21, 2014 | 5.73 | 8.96 | 5.26 | — | 4.06 | — | 13.73 | 7.79 | 3.96 | 3.82 | — | 16.81 | 12.79 | 26.77 | 2.12 | 14.17 |
| Nov 22, 2013 | 4.79 | 10.06 | 4.49 | — | 3.74 | — | 8.37 | 5.28 | 3.36 | 3.13 | — | 12.19 | 11.74 | 24.35 | 2.19 | 17.51 |
| Nov 16, 2012 | 3.45 | 11.05 | 2.84 | — | 4.38 | — | 11.77 | 6.46 | 3.68 | 3.11 | — | 19.49 | 12.73 | 19.86 | 1.93 | — |
| Nov 18, 2011 | 2.36 | 10.33 | 2.66 | — | 7.87 | — | 11.39 | 5.46 | 4.07 | 4.12 | — | — | 12.71 | — | 1.84 | — |
| Nov 19, 2010 | 2.21 | 11.06 | 3.29 | — | 9.33 | — | 8.57 | 5.05 | 4.84 | 3.52 | — | — | 9.19 | — | 1.93 | — |
| Nov 20, 2009 | 2.56 | 9.61 | 3.68 | — | 14.21 | — | 7.26 | 3.50 | 5.36 | 4.29 | — | — | 5.65 | — | 1.71 | — |
| Nov 21, 2008 | 1.70 | 9.15 | 2.34 | — | 10.30 | — | 8.61 | 4.76 | 6.47 | 4.66 | — | — | 15.76 | — | 1.68 | — |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).
Comparison to Sector (Software & Services)
Visa Inc., P/BV, long-term trends, comparison to sector (software & services)
| Visa Inc. | Software & Services | |
|---|---|---|
| Nov 16, 2022 | 12.18 | 10.54 |
| Nov 18, 2021 | 11.41 | 13.51 |
| Nov 19, 2020 | 12.23 | 11.67 |
| Nov 14, 2019 | 11.17 | 10.06 |
| Nov 16, 2018 | 9.10 | 8.75 |
| Nov 17, 2017 | 7.61 | 7.21 |
| Nov 15, 2016 | 5.59 | 6.29 |
| Nov 20, 2015 | 6.53 | 5.39 |
| Nov 21, 2014 | 5.73 | 5.16 |
| Nov 22, 2013 | 4.79 | 4.47 |
| Nov 16, 2012 | 3.45 | 4.89 |
| Nov 18, 2011 | 2.36 | 5.40 |
| Nov 19, 2010 | 2.21 | 5.32 |
| Nov 20, 2009 | 2.56 | 5.46 |
| Nov 21, 2008 | 1.70 | 6.11 |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).
Comparison to Industry (Information Technology)
Visa Inc., P/BV, long-term trends, comparison to industry (information technology)
| Visa Inc. | Information Technology | |
|---|---|---|
| Nov 16, 2022 | 12.18 | 10.25 |
| Nov 18, 2021 | 11.41 | 12.37 |
| Nov 19, 2020 | 12.23 | 10.94 |
| Nov 14, 2019 | 11.17 | 8.41 |
| Nov 16, 2018 | 9.10 | 7.00 |
| Nov 17, 2017 | 7.61 | 5.46 |
| Nov 15, 2016 | 5.59 | 4.53 |
| Nov 20, 2015 | 6.53 | 4.30 |
| Nov 21, 2014 | 5.73 | 4.36 |
| Nov 22, 2013 | 4.79 | 3.50 |
| Nov 16, 2012 | 3.45 | 3.75 |
| Nov 18, 2011 | 2.36 | 3.98 |
| Nov 19, 2010 | 2.21 | 4.16 |
| Nov 20, 2009 | 2.56 | 4.31 |
| Nov 21, 2008 | 1.70 | 4.00 |
Based on: 10-K (reporting date: 2022-09-30), 10-K (reporting date: 2021-09-30), 10-K (reporting date: 2020-09-30), 10-K (reporting date: 2019-09-30), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-30), 10-K (reporting date: 2015-09-30), 10-K (reporting date: 2014-09-30), 10-K (reporting date: 2013-09-30), 10-K (reporting date: 2012-09-30), 10-K (reporting date: 2011-09-30), 10-K (reporting date: 2010-09-30), 10-K (reporting date: 2009-09-30), 10-K (reporting date: 2008-09-30).