Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Enterprise Value (EV)
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2008
- Price to Book Value (P/BV) since 2008
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Historical Valuation Ratios (Summary)
Visa Inc., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
The analysis of the quarterly financial valuation ratios over the given period reveals several notable trends and fluctuations.
- Price to Earnings (P/E) Ratio
- The P/E ratio exhibited a general decline from late 2017 through the end of 2018, dropping from 39.68 to 27.58. It then rose notably in 2019, peaking at 34.54 by the end of the year. During 2020, the ratio fluctuated markedly, reaching a high of 40.76 in the third quarter but then declining to 38.53 by the year-end. The ratio peaked significantly in the first half of 2021, reaching values above 47, before experiencing a downward trend through 2022 and early 2023, stabilizing around the 29-31 range.
- Price to Operating Profit (P/OP) Ratio
- This ratio showed a relatively stable pattern in 2017 and 2018, ranging between approximately 22 and 24. It increased steadily into 2019 and 2020, reaching a notable peak of 31.45 in the third quarter of 2020. Subsequently, the P/OP ratio declined through 2021 and into 2022, dropping back to the low 20s by early 2023. Overall, the peak in late 2020 and early 2021 suggests a period of relatively higher market valuation compared to operating profit during that time.
- Price to Sales (P/S) Ratio
- The P/S ratio exhibited some volatility but generally trended upward from the start of the data period in late 2017, increasing from 15.13 to a peak of 23.66 in the first quarter of 2021. After this peak, there was a marked decline in 2021 and 2022, bringing the ratio down to approximately 14.78 by the end of 2022. A slight recovery appears in early 2023, with the ratio moving back towards 15.15. This pattern indicates fluctuating investor sentiment in relation to the company's sales over the period, with heightened valuations during the pandemic period followed by normalization.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio showed a steady increase from late 2017, starting at 8.49 and increasing to around 12 by the end of 2019. It then continued to rise reaching a local peak of nearly 14 in mid-2021. Afterward, a moderate decline occurred through 2022, with the ratio stabilizing just above 12 by early 2023. This suggests an increasing market valuation relative to book value over most of the observed period, with some retrenchment after mid-2021.
Overall, the valuation ratios reflect periods of investor optimism and elevated market valuations especially around 2020 and early 2021, likely influenced by broader market conditions. The subsequent declines across most ratios in 2022 and early 2023 may indicate a reversion toward more normalized valuation levels. The fluctuations suggest responsiveness to economic cycles, operating performance, and market sentiment over the period analyzed.
Price to Earnings (P/E)
Visa Inc., historical P/E calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Net income (in millions) | |||||||||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2023 Calculation
EPS
= (Net incomeQ2 2023
+ Net incomeQ1 2023
+ Net incomeQ4 2022
+ Net incomeQ3 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Visa Inc. Quarterly or Annual Report.
4 Q2 2023 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The data reveals several notable trends in the company's financial performance over the observed periods. The share price demonstrates an overall upward trajectory from late 2017 through early 2023, with some fluctuations. Specifically, the share price increased from approximately $126 at the end of 2017 to a peak near $248 in mid-2021, followed by a period of volatility and slight decline, ending near $229 in early 2023.
Earnings per share (EPS) show a steady increase over the entire period, indicating consistent growth in profitability. Starting from just over $3 in late 2017, EPS rose to around $7.7 by early 2023. This upward movement in EPS reflects improved earnings performance quarter over quarter, despite some minor short-term dips observed around mid-2020.
The price-to-earnings (P/E) ratio exhibits more variability across the periods. Initially, the P/E ratio was relatively high at about 40 in late 2017, then generally declined through 2018 down to around 27.5, and rose significantly to nearly 48 in early to mid-2021. After this peak, the P/E ratio decreased closer to the 30 mark by early 2023. This fluctuation indicates changing market valuations relative to earnings, possibly influenced by market expectations, investor sentiment, or external economic factors.
- Share Price Trend
- Overall increase from about $126 to $229, peaking near $248 in mid-2021, with volatility and moderate correction thereafter.
- EPS Trend
- Consistent growth from approximately $3.17 to $7.7, suggesting progressively stronger earnings performance.
- P/E Ratio Trend
- Variable, declining initially from 40 to 27.5, then a pronounced increase to near 48 in 2021, followed by a decline towards 30, indicating cyclical market valuation adjustments.
In summary, the financial data indicates strong earnings growth supported by rising EPS figures, a general increase in share price over the long term, and fluctuating valuation as reflected in the P/E ratio. The volatility in the P/E ratio highlights changing investor perceptions despite consistent improvements in earnings.
Price to Operating Profit (P/OP)
Visa Inc., historical P/OP calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Operating income (in millions) | |||||||||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2023 Calculation
Operating profit per share
= (Operating incomeQ2 2023
+ Operating incomeQ1 2023
+ Operating incomeQ4 2022
+ Operating incomeQ3 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Visa Inc. Quarterly or Annual Report.
4 Q2 2023 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a general upward trend from late 2017 through early 2023, beginning at approximately $125.72 and reaching a peak near $247.92 in mid-2021. After this peak, there was notable volatility, with prices fluctuating between roughly $190 and $231 in subsequent quarters. The price saw periodic declines, particularly after the first quarter of 2021, but maintained levels substantially higher than those at the start of the period considered.
- Operating Profit Per Share (OPPS) Trends
- Operating profit per share showed a consistent and steady increase throughout the timeframe. Starting at around $5.48, it incrementally rose each quarter to reach approximately $9.59 by the first quarter of 2023. Despite minor quarter-to-quarter fluctuations, the overall direction indicates continual improvement in operating profitability on a per-share basis.
- Price-to-Operating-Profit Ratio (P/OP) Trends
- The price-to-operating-profit ratio experienced variability, moving in a range between roughly 21.88 and 37.24. Initially, the ratio hovered around the low to mid-20s, then increased to peak levels in mid-2021, suggesting a relative premium on the share price compared to operating profits during that period. After reaching the peak, the ratio declined towards the mid-20s, aligning more closely again with earlier multiples by early 2023. This pattern suggests changing market perceptions of valuation relative to operating profitability over time.
- Summary and Insights
- The data reflects a company experiencing growth in operating efficiency and profitability per share, evidenced by steadily increasing operating profit per share. The share price generally trended upward, with marked gains aligned with periods of improved profitability but also periods of correction and volatility, indicating external factors or market sentiment shifts influencing valuation. The fluctuations in the price-to-operating-profit ratio further highlight periods of cautious optimism or market reevaluation. Overall, the trends suggest a robust financial performance underpinned by improving operational results, while market pricing exhibits typical cyclical variability.
Price to Sales (P/S)
Visa Inc., historical P/S calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Net revenues (in millions) | |||||||||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2023 Calculation
Sales per share
= (Net revenuesQ2 2023
+ Net revenuesQ1 2023
+ Net revenuesQ4 2022
+ Net revenuesQ3 2022)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Visa Inc. Quarterly or Annual Report.
4 Q2 2023 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The share price exhibited overall growth throughout the periods analyzed, beginning at a value of 125.72 US$ near the end of 2017 and rising to approximately 229.01 US$ by the first quarter of 2023. Notably, there were fluctuations with peaks occurring at 247.92 US$ in mid-2021 and subsequent declines and recoveries thereafter. The trend indicates underlying volatility yet a general upward trajectory.
Sales per share demonstrated a consistent and steady increase over the entire timeline. Starting from 8.31 US$ at the end of 2017, this metric advanced progressively to reach 15.12 US$ by early 2023, reflecting sustained revenue growth on a per-share basis. There were minor short-term fluctuations, but the overall pattern was one of stable improvement.
The Price-to-Sales (P/S) ratio showed more variability compared to sales and price individually. It started at 15.13 and displayed oscillations influenced by changes in both share price and sales per share. The P/S ratio peaked at 23.66 around the first quarter of 2021, indicating elevated valuation relative to sales at that time. Following this peak, the ratio generally declined, reaching lower levels near 14.78 by late 2022, before slightly increasing again to 15.15 in early 2023. This fluctuation suggests periods of changing market sentiment and valuation multiples applied by investors in relation to the underlying sales performance.
In summary, the data shows a company with steadily rising revenues on a per-share basis and an increasing share price over the medium term, albeit with considerable short-term volatility. Valuation multiples as expressed by the P/S ratio have varied significantly, peaking in early 2021 and moderating thereafter, pointing to evolving investor expectations and market conditions during the period examined.
Price to Book Value (P/BV)
Visa Inc., historical P/BV calculation (quarterly data)
| Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||||||||
| Equity (in millions) | |||||||||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||||||||
| Accenture PLC | |||||||||||||||||||||||||||||
| Adobe Inc. | |||||||||||||||||||||||||||||
| AppLovin Corp. | |||||||||||||||||||||||||||||
| Cadence Design Systems Inc. | |||||||||||||||||||||||||||||
| CrowdStrike Holdings 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. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-K (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-K (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-K (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-K (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 Q2 2023 Calculation
BVPS = Equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Visa Inc. Quarterly or Annual Report.
4 Q2 2023 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited significant volatility over the observed periods. Starting at $125.72 at the end of 2017, it generally increased through 2018 and 2019, reaching peaks above $180 in mid-2019 and approaching nearly $200 by the end of 2019. There was a notable dip in early 2020, likely influenced by broader market conditions, with the price falling to $176.15 in March 2020. This was followed by a recovery and upward trend through 2020 and into early 2021, peaking at $247.92 in June 2021. After this peak, the share price declined, fluctuating around the $210 to $230 range through the end of 2022 and into early 2023.
- Book Value Per Share (BVPS) Trend
- The book value per share showed a steady and gradual increase across the entire timeframe. It started at $14.80 in December 2017 and incrementally rose each quarter, reaching $18.82 by March 2023. This consistent growth suggests a strengthening equity base over time, reflecting ongoing accumulation of retained earnings or other equity changes contributing positively to the book value.
- Price-to-Book Value (P/BV) Ratio Analysis
- The P/BV ratio demonstrated considerable variability, reflecting changes in market valuation relative to the underlying book value. Initially at 8.49 in late 2017, the ratio fluctuated but generally trended upward, reaching above 12 by the end of 2019. Despite the dip in share price in early 2020, the ratio recovered strongly, peaking at around 13.95 in mid-2021. Afterward, the ratio decreased somewhat but remained elevated above 12 through the latest data point in March 2023. These high P/BV ratios indicate a market valuation that significantly exceeds the underlying book value, suggesting strong investor confidence or expectations of high future earnings growth.
- Overall Insights
- Over the analyzed period, the company’s share price and market valuation displayed cyclical movements influenced by external factors, with a pronounced recovery following early 2020 declines. The steady increase in book value per share underscores a solid foundation in shareholder equity. The elevated and fluctuating P/BV ratios throughout suggest that the market consistently valued the company at a premium, possibly reflecting robust growth prospects or strong competitive positioning.