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Visa (V) Shiller PE Ratio : 50.65 (As of Apr. 25, 2024)


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What is Visa Shiller PE Ratio?

As of today (2024-04-25), Visa's current share price is $275.02. Visa's E10 for the quarter that ended in Dec. 2023 was $5.43. Visa's Shiller PE Ratio for today is 50.65.

The historical rank and industry rank for Visa's Shiller PE Ratio or its related term are showing as below:

V' s Shiller PE Ratio Range Over the Past 10 Years
Min: 39.22   Med: 65.16   Max: 77.6
Current: 50.65

During the past years, Visa's highest Shiller PE Ratio was 77.60. The lowest was 39.22. And the median was 65.16.

V's Shiller PE Ratio is ranked worse than
82.43% of 296 companies
in the Credit Services industry
Industry Median: 14.405 vs V: 50.65

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Visa's adjusted earnings per share data for the three months ended in Dec. 2023 was $2.390. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $5.43 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Visa Shiller PE Ratio Historical Data

The historical data trend for Visa's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Visa Shiller PE Ratio Chart

Visa Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 66.31 66.62 61.99 39.25 43.52

Visa Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.56 46.18 46.80 43.52 47.92

Competitive Comparison of Visa's Shiller PE Ratio

For the Credit Services subindustry, Visa's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Visa's Shiller PE Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Visa's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Visa's Shiller PE Ratio falls into.



Visa Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Visa's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=275.02/5.43
=50.65

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Visa's E10 for the quarter that ended in Dec. 2023 is calculated as:

For example, Visa's adjusted earnings per share data for the three months ended in Dec. 2023 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=2.39/129.4194*129.4194
=2.390

Current CPI (Dec. 2023) = 129.4194.

Visa Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201403 0.630 99.695 0.818
201406 0.540 100.560 0.695
201409 0.430 100.428 0.554
201412 0.630 99.070 0.823
201503 0.630 99.621 0.818
201506 0.690 100.684 0.887
201509 0.620 100.392 0.799
201512 0.800 99.792 1.038
201603 0.710 100.470 0.915
201606 0.170 101.688 0.216
201609 0.790 101.861 1.004
201612 0.860 101.863 1.093
201703 0.180 102.862 0.226
201706 0.860 103.349 1.077
201709 0.900 104.136 1.119
201712 1.070 104.011 1.331
201803 1.110 105.290 1.364
201806 1.000 106.317 1.217
201809 1.230 106.507 1.495
201812 1.300 105.998 1.587
201903 1.310 107.251 1.581
201906 1.370 108.070 1.641
201909 1.340 108.329 1.601
201912 1.460 108.420 1.743
202003 1.380 108.902 1.640
202006 1.070 108.767 1.273
202009 0.970 109.815 1.143
202012 1.420 109.897 1.672
202103 1.380 111.754 1.598
202106 1.180 114.631 1.332
202109 1.650 115.734 1.845
202112 1.830 117.630 2.013
202203 1.700 121.301 1.814
202206 1.600 125.017 1.656
202209 1.860 125.227 1.922
202212 1.990 125.222 2.057
202303 2.030 127.348 2.063
202306 2.000 128.729 2.011
202309 2.270 129.860 2.262
202312 2.390 129.419 2.390

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Visa  (NYSE:V) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Visa Shiller PE Ratio Related Terms

Thank you for viewing the detailed overview of Visa's Shiller PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Visa (V) Business Description

Address
P.O. Box 8999, San Francisco, CA, USA, 94128-8999
Visa is the largest payment processor in the world. In fiscal 2022, it processed over $14 trillion in total volume. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.
Executives
Rajat Taneja officer: PRESIDENT, TECHNOLOGY C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, LEGAL DEPT., REDWOOD CITY CA 94065
Ryan Mcinerney officer: PRESIDENT C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Kelly Alfred F Jr director, officer: CHAIRMAN & CEO AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Chris Suh officer: CHIEF FINANCIAL OFFICER C/O CARDLYTICS, INC., 675 PONCE DE LEON AVE. NE, STE 6000, ATLANTA GA 30308
Vasant M Prabhu officer: VICE CHAIR, CFO C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Tullier Kelly Mahon officer: V.CHAIR, CHF PPL & ADM OFF C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Lloyd Carney director C/O MICROMUSE INC, 139 TOWNSEND ST, SAN FRANCISCO CA 94107
Pam Murphy director 1201 S. 2ND STREET, MILWAUKEE WI 53204
Julie B Rottenberg officer: GENERAL COUNSEL C/O VISA INC, POB 8999, SAN FRANCISCO CA 94128
Kermit R Crawford director 200 WILMOT ROAD, DEERFIELD IL 60015
Peter M Andreski officer: GBL CORP CONTROLLER, CAO C/O VISA INC., POB 8999, SAN FRANCISCO CA 94128
Teri List director 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Robert W Matschullat director C/O THE CLOROX COMPANY, 1221 BROADWAY, OAKLAND CA 94612
James H Hoffmeister officer: GBL CORP CONTROLLER, CAO C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Paul D Fabara officer: CHIEF RISK OFFICER 200 VESEY STREET, NEW YORK NY 10285

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