Stock Analysis on Net

Visa Inc. (NYSE:V)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Visa Inc., FCFE calculation

US$ in millions

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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
Purchases of property, equipment and technology (970) (705) (736) (756) (718) (707)
Repayments of debt (1,000) (3,000) (1,750)
Proceeds from issuance of senior notes 3,218 7,212 2,488
Debt issuance costs (15)
Free cash flow to equity (FCFE) 20,097 11,522 16,916 12,028 10,245 10,974

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Visa Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Visa Inc. FCFE decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Price to FCFE Ratio, Current

Visa Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 2,049,144,694
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 20,097
FCFE per share 9.81
Current share price (P) 229.01
Valuation Ratio
P/FCFE 23.35
Benchmarks
P/FCFE, Competitors1
Accenture PLC 23.60
Adobe Inc. 35.08
International Business Machines Corp. 10.33
Intuit Inc. 45.68
Microsoft Corp. 55.20
Oracle Corp. 16.08
Palo Alto Networks Inc. 97.10
Salesforce Inc. 38.03
ServiceNow Inc. 57.54
Synopsys Inc. 57.88
P/FCFE, Sector
Software & Services 46.81
P/FCFE, Industry
Information Technology 42.24

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Visa Inc., historical P/FCFE calculation, comparison to benchmarks

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Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019 Sep 30, 2018 Sep 30, 2017
No. shares of common stock outstanding1 2,061,687,546 2,108,549,451 2,133,541,039 2,155,629,545 2,206,760,802 2,268,806,703
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 20,097 11,522 16,916 12,028 10,245 10,974
FCFE per share3 9.75 5.46 7.93 5.58 4.64 4.84
Share price1, 4 210.14 203.33 207.57 179.75 140.18 109.82
Valuation Ratio
P/FCFE5 21.56 37.21 26.18 32.21 30.19 22.70
Benchmarks
P/FCFE, Competitors6
Accenture PLC 17.91 25.76 19.01 19.50 18.11
Adobe Inc. 21.32 34.26 41.36 41.90 19.87
International Business Machines Corp. 11.97 48.45 9.43 4.39
Intuit Inc. 13.86 86.74 17.36 34.61 29.29
Microsoft Corp. 36.73 42.54 42.74 30.77 37.57
Oracle Corp. 8.36 6.27 22.31 10.78
Palo Alto Networks Inc. 29.54 32.91 8.11 46.20 8.50
Salesforce Inc. 16.56 49.52 50.40 29.09
ServiceNow Inc. 44.44 64.54 49.83 68.98
Synopsys Inc. 33.41 40.55 45.07 77.64 19.63
P/FCFE, Sector
Software & Services 30.43 33.49 25.65 21.90
P/FCFE, Industry
Information Technology 26.56 27.30 23.29 18.92

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 Data adjusted for splits and stock dividends.

2 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 20,097,000,000 ÷ 2,061,687,546 = 9.75

4 Closing price as at the filing date of Visa Inc. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 210.14 ÷ 9.75 = 21.56

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Visa Inc. P/FCFE ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.