Visa Inc., FCFF calculation

US$ in millions

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Net income	14,957)	12,311)	10,866)	12,080)	10,301)	6,699)
Net noncash charges	11,549)	9,618)	7,972)	7,007)	5,069)	7,089)
Change in operating assets and liabilities	(7,657)	(6,702)	(8,398)	(6,303)	(2,657)	(4,580)
Net cash provided by operating activities	18,849)	15,227)	10,440)	12,784)	12,713)	9,208)
Interest payments on debt, net of tax¹	498)	495)	424)	435)	436)	279)
Purchases of property, equipment and technology	(970)	(705)	(736)	(756)	(718)	(707)
Free cash flow to the firm (FCFF)	18,377)	15,017)	10,128)	12,463)	12,431)	8,780)

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).

¹ See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Visa Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Visa Inc. FCFF increased from 2020 to 2021 and from 2021 to 2022.

Visa Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Effective Income Tax Rate (EITR)
EITR¹	18.00%	23.00%	21.00%	19.00%	20.00%	43.00%
Interest Paid, Net of Tax
Interest payments on debt, before tax	607)	643)	537)	537)	545)	489)
Less: Interest payments on debt, tax²	109)	148)	113)	102)	109)	210)
Interest payments on debt, net of tax	498)	495)	424)	435)	436)	279)

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).

¹ See details »

² 2022 Calculation
Interest payments on debt, tax = Interest payments on debt × EITR
= 607 × 18.00% = 109

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Visa Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	471,736)
Free cash flow to the firm (FCFF)	18,377)
Valuation Ratio
EV/FCFF	25.67
Benchmarks
EV/FCFF, Competitors¹
Accenture PLC	20.62
Adobe Inc.	29.59
International Business Machines Corp.	14.26
Intuit Inc.	35.55
Microsoft Corp.	50.55
Oracle Corp.	34.49
Palo Alto Networks Inc.	35.10
Salesforce Inc.	26.89
ServiceNow Inc.	52.69
Synopsys Inc.	52.36
EV/FCFF, Sector
Software & Services	41.96
EV/FCFF, Industry
Information Technology	40.26

Based on: 10-K (reporting date: 2022-09-30).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Visa Inc., historical EV/FCFF calculation, comparison to benchmarks

	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019	Sep 30, 2018	Sep 30, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	435,704)	431,122)	449,223)	394,738)	316,920)	257,478)
Free cash flow to the firm (FCFF)²	18,377)	15,017)	10,128)	12,463)	12,431)	8,780)
Valuation Ratio
EV/FCFF³	23.71	28.71	44.35	31.67	25.49	29.33
Benchmarks
EV/FCFF, Competitors⁴
Accenture PLC	16.99	24.76	17.90	18.49	17.18	—
Adobe Inc.	20.82	33.61	40.43	40.48	31.36	—
International Business Machines Corp.	16.47	13.10	9.35	12.86	—	—
Intuit Inc.	32.85	48.64	37.90	33.30	27.69	—
Microsoft Corp.	32.31	38.37	33.99	26.37	23.99	—
Oracle Corp.	31.60	16.36	14.99	14.03	11.11	—
Palo Alto Networks Inc.	29.29	32.74	26.50	20.44	22.33	—
Salesforce Inc.	35.97	44.91	39.63	41.21	—	—
ServiceNow Inc.	40.86	60.13	83.74	67.96	—	—
Synopsys Inc.	30.82	38.59	42.88	33.32	37.07	—
EV/FCFF, Sector
Software & Services	29.16	31.90	27.10	23.26	—	—
EV/FCFF, Industry
Information Technology	27.01	27.93	24.12	19.69	—	—

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).

¹ See details »

² See details »

³ 2022 Calculation
EV/FCFF = EV ÷ FCFF
= 435,704 ÷ 18,377 = 23.71

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Visa Inc. EV/FCFF ratio decreased from 2020 to 2021 and from 2021 to 2022.

Visa Inc. (NYSE:V)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical