Visa Inc. (NYSE:V)

Price to Earnings (P/E) Ratio

The P/E ratio exhibits some fluctuations but remains within a moderate range overall. Starting around 37.19 near the end of 2016, it slightly increased to a peak of approximately 48.53 by late 2021. Subsequently, it declined steadily to about 29.73 by the first quarter of 2023. This pattern indicates periods of both growing market optimism and valuation corrections over time.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio shows an overall upward trend from 20.52 at the end of 2016, reaching a peak around 37.24 in late 2021. Following this peak, it decreased steadily to 23.87 by early 2023. The increase until 2021 suggests improving market expectations or increasing operating profits, but the notable decline afterwards may reflect adjustments in valuation or operating performance.

Price to Sales (P/S) Ratio

The P/S ratio generally increased from 13.57 near the end of 2016 to a high of 23.66 by late 2021. After this peak, the ratio declined to 15.15 by early 2023. This indicates growing sales valuations over the years, with a significant premium at the 2021 peak, followed by a reduction, possibly due to revenue growth normalization or market valuation corrections.

Price to Book Value (P/BV) Ratio

The P/BV ratio trended upwards from 6.02 at the end of 2016 to a maximum of around 13.95 in mid-2021. Subsequently, it showed a slight downward correction and stabilized, ending around 12.17 by the first quarter of 2023. This trend suggests an increase in market valuation relative to book value over the period, with some correction following the peak valuation levels.

Summary of Trends

Across all valuation metrics, there is a consistent pattern of growth in valuation ratios from late 2016 up to approximately 2021, reflecting increased market confidence or improved financial metrics. Following 2021, a general correction is observable in all ratios, indicating a moderation in market valuation or adjustments to financial performance outlook. The ratios remain at levels higher than the starting values in 2016, suggesting sustained market valuation above the earlier baseline.

The analysis of the quarterly financial data reveals several key trends and developments in the company's market performance and earnings profile over the observed periods.

Share Price Trends

The share price displayed a general upward trajectory from the end of 2016 through early 2020, increasing from $82.30 to a peak near $208 in the third quarter of 2020. Following this peak, some volatility is noted with fluctuating values but generally maintaining an elevated level compared to earlier years. Notably, the share price reached highs above $240 in early to mid-2021 before moderating somewhat toward the end of 2022 and early 2023, settling around the $229 mark in the first quarter of 2023.

Earnings Per Share (EPS) Progression

Reported earnings per share commenced recording in late 2017 at $2.95 and showed steady growth through to 2019, reaching $5.76 at year-end. This upward trend continued albeit with some minor fluctuations, with EPS peaking at $7.70 in the first quarter of 2023. The growth in EPS suggests ongoing profitability improvements and effective earnings expansion during the period under review.

Price-to-Earnings (P/E) Ratio Movements

The P/E ratio initially stood at 37.19 in late 2017 and experienced fluctuations without a clear long-term directional trend. It declined towards the 30s in 2018 and then saw a rise and subsequent spikes above 40 and even near 48 in late 2020 and 2021, indicating increased market valuation relative to earnings during those quarters. Post-2021, the P/E ratio gradually declined towards the high 20s and low 30s by early 2023, reflecting either relative price adjustments or continual EPS growth dampening valuation multiples.

Interrelation Insights

The concurrent increase in both share price and EPS over several years signals positive market sentiment supported by genuine earnings growth. The volatility in the P/E ratio points to changing market expectations or external economic factors impacting share valuation independently from earnings changes. The elevated P/E ratios during 2020 and 2021 may suggest heightened investor optimism or speculative interest during that interval.

Overall, the data portrays a company that has experienced substantial value appreciation and consistent earnings growth with some valuation ratio fluctuations that align with broader market dynamics.

The share price demonstrates an overall upward trajectory from December 31, 2016, through March 31, 2023, despite some fluctuations. Initial values at approximately $82.3 gradually increased to a peak around $247.92 in June 2021. The trajectory reflects significant growth, especially notable from late 2018 through mid-2021. However, after this peak, the share price experienced a decline and periods of volatility, tapering to around $229 by March 31, 2023.

Operating profit per share (OPPS) data, available from December 31, 2017, onwards, shows a consistent upward trend. Beginning at 5.35 US dollars, it steadily rises through the quarters, achieving a value of 9.59 US dollars by March 31, 2023. This indicates ongoing growth in operational profitability on a per-share basis. There are minor fluctuations mid-way, especially around March to September 2020, when OPPS slightly decreased from 7.32 to 6.36 US dollars, likely indicating some operational challenges or external factors influencing profitability during that interval, yet it quickly resumed growth afterward.

The price to operating profit ratio (P/OP) reflects market valuation relative to operating profit per share. After initial data availability from December 31, 2017, the ratio fluctuates between roughly 20 and 37 over the observed period. Notably, this ratio exhibits an increasing trend from late 2019 into mid-2021, peaking near 37.24 in June 2021. This suggests that the share price grew at a faster rate than operating profits during this time, indicative of increasing investor valuation or market optimism. Post mid-2021, the ratio declines gradually toward the mid-20s by early 2023, consistent with the earlier noted share price correction and stabilization relative to operating profit gains.

In summary, the financial data reflects sustained growth in operating profit per share through the entire period, accompanied by substantial appreciation in share price, albeit with notable volatility particularly post-peak in mid-2021. The oscillations in the price to operating profit ratio highlight changing market valuations relative to profit dynamics, underscoring phases of heightened investor enthusiasm followed by more tempered valuations.

Share Price Trend

The share price exhibited a general upward trend over the analyzed period, rising from $82.3 at the end of 2016 to a peak near $248 by mid-2021. There were fluctuations, including a notable dip around the end of 2018 and again in 2020 during the global market uncertainties. After peaking in September 2021, the price showed some volatility but remained relatively high above $200 through early 2023.

Sales Per Share Evolution

Sales per share, which started being reported from late 2017, followed an upward trajectory from $8.09 to $15.12 by March 2023. The growth was steady with minor decreases observed during 2020, possibly reflecting impacts from broader economic conditions. The general increase indicates improving revenue generation on a per-share basis over time.

Price-to-Sales (P/S) Ratio Fluctuations

The P/S ratio displayed considerable variability but remained elevated throughout the period, highlighting market expectations relative to sales. Initial figures around 13.57 increased to levels above 20 in some quarters, particularly in early 2021, suggesting increased investor optimism or premium valuation. Post-peak, the ratio decreased toward the 15–17 range by early 2023, indicating a moderation in the price premium relative to sales.

Interrelationship Observations

While share price increased substantially, sales per share also grew, albeit at a steadier pace. The P/S ratio deviations reflect market sentiment fluctuations rather than mere sales changes. Periods with high P/S ratios corresponded to increased share price beyond what sales growth alone would suggest. Conversely, dips in share price alongside sustained or slightly declining sales suggest adjustments in market valuation rather than fundamental revenue declines.

Summary

The data reflect an overall positive performance and market valuation growth over the years. Despite intermittent volatility, the company’s sales efficiency improved, and investor confidence appeared strong, particularly evident in elevated P/S ratios during certain periods. Recent moderation in valuation multiples may suggest a recalibration of market expectations but still indicates a relatively high valuation anchored by solid sales growth.

The share price demonstrated an overall upward trend from December 31, 2016, through March 31, 2023, beginning at $82.3 and reaching $229.01 by the end of the period. Several periods of notable price increases occurred, particularly between December 31, 2017 ($125.72) and June 30, 2019 ($183.69), and again from March 31, 2020 ($176.15) to March 31, 2021 ($236.86). Some fluctuations and minor declines were observed, such as the decrease from June 30, 2019 ($183.69) to September 30, 2019 ($179.75) and from September 30, 2021 ($247.92) to September 30, 2022 ($211.35). Despite these fluctuations, the price maintained higher levels than earlier years, reflecting overall positive market performance.

The book value per share (BVPS) showed a steady upward progression as well, increasing from $13.67 at the end of 2016 to $18.82 by March 31, 2023. This growth was gradual and relatively stable, with minor variations but no significant declines, indicating consistent improvements in the company's net asset value on a per-share basis across the analyzed periods.

The price-to-book value (P/BV) ratio fluctuated considerably during the period. Starting at 6.02 in December 2016, the ratio climbed to a peak of 13.95 at June 30, 2021, indicating that the market price was appreciating more rapidly than the book value per share. Several peaks and troughs were evident, with notable highs at December 31, 2019 (12.12), March 31, 2021 (13.4), and June 30, 2021 (13.95). Lower points include 6.02 at the start and a moderate decline toward 12.17 by March 31, 2023. This pattern suggests varying investor sentiment and market valuations relative to the book value during the given timeframe.

In summary, the data suggests a strong appreciation in share price complemented by steady increases in book value per share, resulting in elevated P/BV ratios that reflect heightened market optimism and valuation multiples over time. Variability in P/BV indicates changing market perceptions of intrinsic value despite underlying book value growth.