Price to Earnings (P/E)
since 2008
Calculation
Visa Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 16, 2022 | 28.97 | = | 210.14 | ÷ | 7.25 | 7.25 | = | 14,957 | ÷ | 2,061,687,546 | |
| Nov 18, 2021 | 34.83 | = | 203.33 | ÷ | 5.84 | 5.84 | = | 12,311 | ÷ | 2,108,549,451 | |
| Nov 19, 2020 | 40.76 | = | 207.57 | ÷ | 5.09 | 5.09 | = | 10,866 | ÷ | 2,133,541,039 | |
| Nov 14, 2019 | 32.08 | = | 179.75 | ÷ | 5.60 | 5.60 | = | 12,080 | ÷ | 2,155,629,545 | |
| Nov 16, 2018 | 30.03 | = | 140.18 | ÷ | 4.67 | 4.67 | = | 10,301 | ÷ | 2,206,760,802 | |
| Nov 17, 2017 | 37.19 | = | 109.82 | ÷ | 2.95 | 2.95 | = | 6,699 | ÷ | 2,268,806,703 | |
| Nov 15, 2016 | 30.68 | = | 78.57 | ÷ | 2.56 | 2.56 | = | 5,991 | ÷ | 2,339,519,893 | |
| Nov 20, 2015 | 30.79 | = | 80.19 | ÷ | 2.60 | 2.60 | = | 6,328 | ÷ | 2,429,472,223 | |
| Nov 21, 2014 | 28.90 | = | 63.56 | ÷ | 2.20 | 2.20 | = | 5,438 | ÷ | 2,473,017,076 | |
| Nov 22, 2013 | 25.84 | = | 50.53 | ÷ | 1.96 | 1.96 | = | 4,980 | ÷ | 2,546,194,415 | |
| Nov 16, 2012 | 44.49 | = | 35.68 | ÷ | 0.80 | 0.80 | = | 2,144 | ÷ | 2,673,429,711 | |
| Nov 18, 2011 | 17.10 | = | 22.70 | ÷ | 1.33 | 1.33 | = | 3,650 | ÷ | 2,749,075,937 | |
| Nov 19, 2010 | 18.61 | = | 19.26 | ÷ | 1.03 | 1.03 | = | 2,966 | ÷ | 2,866,468,592 | |
| Nov 20, 2009 | 25.25 | = | 20.00 | ÷ | 0.79 | 0.79 | = | 2,353 | ÷ | 2,970,508,130 | |
| Nov 21, 2008 | 44.78 | = | 11.60 | ÷ | 0.26 | 0.26 | = | 804 | ÷ | 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.
A consistent upward trajectory is observed in both the share price and earnings per share over the analyzed period from 2008 to 2022. While the long-term trend indicates substantial growth in both valuation and profitability, the price-to-earnings (P/E) ratio exhibits significant volatility, reflecting fluctuating market expectations and periodic earnings anomalies.
- Share Price Appreciation
- The share price increased from 11.60 US$ in 2008 to 210.14 US$ by 2022. A period of accelerated growth is evident between 2012 and 2019, during which the price rose from 35.68 US$ to 179.75 US$. Following a peak of 207.57 US$ in 2020, the price stabilized, ending the period with a slight overall increase to 210.14 US$.
- Earnings per Share (EPS) Growth
- Earnings per share demonstrated a strong overall expansion, rising from 0.26 US$ in 2008 to 7.25 US$ in 2022. The growth was generally linear, with two notable exceptions: a contraction in 2012 where EPS dropped to 0.80 US$ from 1.33 US$ in the previous year, and a minor decline in 2020 to 5.09 US$ from 5.60 US$ in 2019. Despite these fluctuations, the terminal EPS represents a significant increase in fundamental profitability.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio experienced several distinct phases. An initial high of 44.78 in 2008 was followed by a contraction to a low of 17.10 by 2011. A sharp spike to 44.49 occurred in 2012, coinciding directly with the observed decline in EPS. Between 2013 and 2019, the ratio remained relatively stable, oscillating between 25.84 and 32.08. Another valuation peak of 40.76 was recorded in 2020, again correlating with a temporary dip in earnings. By 2022, the ratio normalized to 28.97, suggesting a realignment of the market price with the current earnings capacity.
The relationship between these metrics suggests that the market maintained a high valuation premium during periods of earnings contraction, particularly in 2012 and 2020. The expansion of the share price was driven by both fundamental earnings growth and shifts in the P/E multiple, though the latter has shown a tendency to mean-revert toward the 28-32 range in recent years.
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Comparison to Competitors
Visa Inc., P/E, 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 | 28.97 | 22.93 | 33.15 | — | 59.70 | — | 71.56 | 57.31 | 28.34 | 26.85 | — | — | 135.68 | 284.29 | 51.76 | 1,957.29 |
| Nov 18, 2021 | 34.83 | 36.58 | 48.90 | 472.35 | 53.88 | — | 19.40 | 75.17 | 35.14 | 15.84 | — | — | 48.20 | 487.70 | 73.37 | — |
| Nov 19, 2020 | 40.76 | 28.32 | 41.69 | — | 62.89 | — | 19.30 | 49.52 | 35.04 | 16.69 | — | — | 1,204.70 | 978.49 | 55.92 | — |
| Nov 14, 2019 | 32.08 | 24.58 | 57.17 | — | 20.22 | — | 13.35 | 48.17 | 26.86 | 16.89 | — | — | 107.70 | 106.89 | 39.55 | — |
| Nov 16, 2018 | 30.03 | 24.10 | 46.11 | — | 46.59 | — | 14.25 | 46.88 | 50.00 | 45.90 | — | — | 731.11 | — | 29.60 | — |
| Nov 17, 2017 | 37.19 | 26.18 | 57.41 | — | 55.67 | — | 25.07 | 37.26 | 26.25 | 22.49 | — | — | 324.94 | — | 95.81 | — |
| Nov 15, 2016 | 30.68 | 18.07 | 46.80 | — | 40.53 | — | 14.29 | 29.60 | 26.08 | 18.53 | — | — | — | — | 33.71 | — |
| Nov 20, 2015 | 30.79 | 22.75 | 70.59 | — | 25.14 | — | 9.65 | 63.89 | 30.63 | 17.92 | — | — | — | — | 30.45 | — |
| Nov 21, 2014 | 28.90 | 17.46 | 132.73 | — | 34.03 | — | 13.55 | 26.44 | 16.11 | 16.33 | — | — | — | — | 25.00 | — |
| Nov 22, 2013 | 25.84 | 15.20 | 104.21 | — | 26.30 | — | 11.58 | 21.73 | 12.14 | 12.78 | — | — | — | — | 24.68 | — |
| Nov 16, 2012 | 44.49 | 17.95 | 22.73 | — | 9.11 | — | 13.37 | 22.37 | 14.40 | 13.61 | — | 6,057.94 | — | — | 26.53 | — |
| Nov 18, 2011 | 17.10 | 17.60 | 18.49 | — | 44.80 | — | 14.47 | 22.53 | 10.03 | 19.17 | — | — | 251.73 | — | 17.51 | — |
| Nov 19, 2010 | 18.61 | 17.62 | 22.05 | — | 20.39 | — | 13.32 | 24.82 | 11.91 | 17.66 | — | — | 118.88 | — | 17.09 | — |
| Nov 20, 2009 | 25.25 | 17.45 | 46.62 | — | — | — | 12.24 | 20.01 | 14.56 | 19.25 | — | — | 87.39 | — | 18.86 | — |
| Nov 21, 2008 | 44.78 | 13.74 | 11.84 | — | — | — | 9.40 | 20.68 | 13.28 | 19.44 | — | — | 388.13 | — | 13.55 | — |
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/E, long-term trends, comparison to sector (software & services)
| Visa Inc. | Software & Services | |
|---|---|---|
| Nov 16, 2022 | 28.97 | 34.25 |
| Nov 18, 2021 | 34.83 | 37.62 |
| Nov 19, 2020 | 40.76 | 38.46 |
| Nov 14, 2019 | 32.08 | 28.30 |
| Nov 16, 2018 | 30.03 | 43.31 |
| Nov 17, 2017 | 37.19 | 30.27 |
| Nov 15, 2016 | 30.68 | 23.96 |
| Nov 20, 2015 | 30.79 | 23.38 |
| Nov 21, 2014 | 28.90 | 18.36 |
| Nov 22, 2013 | 25.84 | 14.09 |
| Nov 16, 2012 | 44.49 | 14.97 |
| Nov 18, 2011 | 17.10 | 13.91 |
| Nov 19, 2010 | 18.61 | 14.04 |
| Nov 20, 2009 | 25.25 | 15.17 |
| Nov 21, 2008 | 44.78 | 13.87 |
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/E, long-term trends, comparison to industry (information technology)
| Visa Inc. | Information Technology | |
|---|---|---|
| Nov 16, 2022 | 28.97 | 26.99 |
| Nov 18, 2021 | 34.83 | 29.75 |
| Nov 19, 2020 | 40.76 | 30.97 |
| Nov 14, 2019 | 32.08 | 23.40 |
| Nov 16, 2018 | 30.03 | 23.17 |
| Nov 17, 2017 | 37.19 | 23.55 |
| Nov 15, 2016 | 30.68 | 19.69 |
| Nov 20, 2015 | 30.79 | 16.54 |
| Nov 21, 2014 | 28.90 | 17.14 |
| Nov 22, 2013 | 25.84 | 14.15 |
| Nov 16, 2012 | 44.49 | 14.37 |
| Nov 18, 2011 | 17.10 | 13.71 |
| Nov 19, 2010 | 18.61 | 15.08 |
| Nov 20, 2009 | 25.25 | 21.50 |
| Nov 21, 2008 | 44.78 | 15.83 |
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).