Price to Operating Profit (P/OP)
since 2008
Calculation
Visa Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 16, 2022 | 23.03 | = | 210.14 | ÷ | 9.13 | 9.13 | = | 18,813 | ÷ | 2,061,687,546 | |
| Nov 18, 2021 | 27.13 | = | 203.33 | ÷ | 7.50 | 7.50 | = | 15,804 | ÷ | 2,108,549,451 | |
| Nov 19, 2020 | 31.45 | = | 207.57 | ÷ | 6.60 | 6.60 | = | 14,081 | ÷ | 2,133,541,039 | |
| Nov 14, 2019 | 25.83 | = | 179.75 | ÷ | 6.96 | 6.96 | = | 15,001 | ÷ | 2,155,629,545 | |
| Nov 16, 2018 | 23.88 | = | 140.18 | ÷ | 5.87 | 5.87 | = | 12,954 | ÷ | 2,206,760,802 | |
| Nov 17, 2017 | 20.52 | = | 109.82 | ÷ | 5.35 | 5.35 | = | 12,144 | ÷ | 2,268,806,703 | |
| Nov 15, 2016 | 23.32 | = | 78.57 | ÷ | 3.37 | 3.37 | = | 7,883 | ÷ | 2,339,519,893 | |
| Nov 20, 2015 | 21.49 | = | 80.19 | ÷ | 3.73 | 3.73 | = | 9,064 | ÷ | 2,429,472,223 | |
| Nov 21, 2014 | 20.42 | = | 63.56 | ÷ | 3.11 | 3.11 | = | 7,697 | ÷ | 2,473,017,076 | |
| Nov 22, 2013 | 17.77 | = | 50.53 | ÷ | 2.84 | 2.84 | = | 7,239 | ÷ | 2,546,194,415 | |
| Nov 16, 2012 | 44.59 | = | 35.68 | ÷ | 0.80 | 0.80 | = | 2,139 | ÷ | 2,673,429,711 | |
| Nov 18, 2011 | 11.44 | = | 22.70 | ÷ | 1.98 | 1.98 | = | 5,456 | ÷ | 2,749,075,937 | |
| Nov 19, 2010 | 12.03 | = | 19.26 | ÷ | 1.60 | 1.60 | = | 4,589 | ÷ | 2,866,468,592 | |
| Nov 20, 2009 | 16.79 | = | 20.00 | ÷ | 1.19 | 1.19 | = | 3,538 | ÷ | 2,970,508,130 | |
| Nov 21, 2008 | 29.22 | = | 11.60 | ÷ | 0.40 | 0.40 | = | 1,232 | ÷ | 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.
An analysis of the financial performance between 2008 and 2022 reveals a consistent long-term growth trajectory in both share price and operating profit per share. The share price increased from 11.60 USD in 2008 to 210.14 USD in 2022, while operating profit per share rose from 0.40 USD to 9.13 USD over the same period.
- Price to Operating Profit (P/OP) Volatility
- The P/OP ratio exhibited significant fluctuations, particularly in the early years of the analyzed period. After starting at 29.22 in 2008, the ratio declined to a low of 11.44 by 2011. A sharp spike occurred in 2012, where the ratio reached a peak of 44.59. This anomaly was driven by a substantial decrease in operating profit per share to 0.80 USD, coinciding with a continued increase in the share price to 35.68 USD.
- Mid-Term Stabilization
- From 2013 to 2019, the P/OP ratio entered a period of relative stabilization, generally fluctuating between 17.77 and 25.83. During this window, operating profit per share grew steadily from 2.84 USD to 6.96 USD, indicating that the market valuation of the company was largely keeping pace with its operational earnings growth.
- Recent Valuation Trends
- In 2020, the P/OP ratio rose to 31.45, the highest level since 2012, reflecting a valuation expansion despite a slight dip in operating profit per share to 6.60 USD. Following this peak, the ratio gradually compressed, ending the period at 23.03 in 2022. This final decline in the ratio occurred even as operating profit per share reached its historical maximum of 9.13 USD, suggesting a normalization of the valuation multiple relative to increased profitability.
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Comparison to Competitors
Visa Inc., P/OP, long-term trends, comparison to competitors
| Visa Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 16, 2022 | 23.03 | 16.83 | 25.85 | — | 47.21 | — | 46.05 | 24.72 | 16.51 | — | — | 357.52 | 260.27 | 43.85 | — |
| Nov 18, 2021 | 27.13 | 28.35 | 40.64 | 111.61 | 48.13 | — | 62.00 | 30.79 | 14.31 | — | — | 431.39 | 436.46 | 75.64 | — |
| Nov 19, 2020 | 31.45 | 22.21 | 51.75 | — | 57.54 | — | 41.56 | 29.30 | 12.17 | — | — | 511.08 | 583.08 | 59.90 | — |
| Nov 14, 2019 | 25.83 | 18.63 | 51.63 | — | 40.67 | — | 40.45 | 24.54 | 13.83 | — | — | 223.46 | 1,590.34 | 40.48 | — |
| Nov 16, 2018 | 23.88 | 16.75 | 42.06 | — | 40.66 | — | 37.92 | 23.63 | 12.83 | — | — | 395.31 | — | 35.54 | — |
| Nov 17, 2017 | 20.52 | 19.47 | 44.86 | — | 35.08 | — | 25.94 | 24.93 | 16.52 | — | — | 908.77 | — | 37.64 | — |
| Nov 15, 2016 | 23.32 | 15.44 | 36.62 | — | 33.61 | — | 23.33 | 21.70 | 13.09 | — | — | 411.51 | — | 28.34 | — |
| Nov 20, 2015 | 21.49 | 15.66 | 49.21 | — | 22.23 | — | 31.60 | 20.57 | 12.84 | — | — | — | — | 25.82 | — |
| Nov 21, 2014 | 20.42 | 11.94 | 86.32 | — | 26.17 | — | 18.25 | 12.81 | 12.12 | — | — | — | — | 26.04 | — |
| Nov 22, 2013 | 17.77 | 11.50 | 71.49 | — | 22.85 | — | 15.12 | 9.91 | 9.51 | — | — | — | — | 24.81 | — |
| Nov 16, 2012 | 44.59 | 11.84 | 16.04 | — | 18.94 | — | 15.05 | 11.23 | 9.91 | — | 1,147.44 | — | — | 25.46 | — |
| Nov 18, 2011 | 11.44 | 11.55 | 14.01 | — | 26.88 | — | 14.19 | 8.55 | 13.61 | — | — | 166.46 | — | 18.21 | — |
| Nov 19, 2010 | 12.03 | 10.76 | 17.20 | — | — | — | 16.51 | 9.27 | 11.95 | — | — | 83.25 | — | 22.01 | — |
| Nov 20, 2009 | 16.79 | 10.49 | 26.10 | — | — | — | 13.11 | 10.42 | 12.94 | — | — | 59.54 | — | 15.18 | — |
| Nov 21, 2008 | 29.22 | 7.72 | 10.04 | — | — | — | 15.15 | 10.44 | 13.68 | — | — | 350.81 | — | 11.75 | — |
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).