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Visa (V) Cyclically Adjusted PB Ratio : 16.96 (As of Apr. 27, 2024)


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What is Visa Cyclically Adjusted PB Ratio?

As of today (2024-04-27), Visa's current share price is $274.52. Visa's Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 was $16.19. Visa's Cyclically Adjusted PB Ratio for today is 16.96.

The historical rank and industry rank for Visa's Cyclically Adjusted PB Ratio or its related term are showing as below:

V' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 8.07   Med: 14.08   Max: 18.56
Current: 17

During the past years, Visa's highest Cyclically Adjusted PB Ratio was 18.56. The lowest was 8.07. And the median was 14.08.

V's Cyclically Adjusted PB Ratio is ranked worse than
98.84% of 258 companies
in the Credit Services industry
Industry Median: 0.875 vs V: 17.00

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Visa's adjusted book value per share data for the three months ended in Mar. 2024 was $19.000. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $16.19 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Visa Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Visa's Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Chart

Visa Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.34 15.97 16.32 11.82 14.38

Visa Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted PB 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 14.58 15.09 14.38 16.20 17.24

Competitive Comparison of Visa's Cyclically Adjusted PB Ratio

For the Credit Services subindustry, Visa's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB 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 Cyclically Adjusted PB Ratio Distribution in the Credit Services Industry

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

* The bar in red indicates where Visa's Cyclically Adjusted PB Ratio falls into.



Visa Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.

Visa's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=274.52/16.19
=16.96

* 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 Cyclically Adjusted Book per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Visa's adjusted Book Value per Share data for the three months ended in Mar. 2024 was:

Adj_Book=Book Value per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=19/129.4194*129.4194
=19.000

Current CPI (Mar. 2024) = 129.4194.

Visa Quarterly Data

Book Value per Share CPI Adj_Book
201406 11.014 100.560 14.175
201409 11.137 100.428 14.352
201412 11.389 99.070 14.878
201503 11.585 99.621 15.050
201506 11.823 100.684 15.197
201509 12.314 100.392 15.875
201512 12.305 99.792 15.958
201603 12.269 100.470 15.804
201606 11.367 101.688 14.467
201609 11.499 101.861 14.610
201612 11.096 101.863 14.098
201703 10.814 102.862 13.606
201706 11.436 103.349 14.321
201709 11.861 104.136 14.741
201712 12.253 104.011 15.246
201803 12.611 105.290 15.501
201806 12.366 106.317 15.053
201809 12.915 106.507 15.693
201812 12.850 105.998 15.689
201903 12.986 107.251 15.670
201906 13.406 108.070 16.054
201909 13.355 108.329 15.955
201912 13.679 108.420 16.328
202003 13.466 108.902 16.003
202006 14.228 108.767 16.930
202009 14.678 109.815 17.298
202012 15.695 109.897 18.483
202103 15.880 111.754 18.390
202106 16.082 114.631 18.157
202109 16.103 115.734 18.007
202112 15.608 117.630 17.172
202203 15.531 121.301 16.570
202206 15.473 125.017 16.018
202209 15.742 125.227 16.269
202212 16.616 125.222 17.173
202303 17.500 127.348 17.785
202306 17.873 128.729 17.969
202309 18.729 129.860 18.666
202312 19.338 129.419 19.338
202403 19.000 129.419 19.000

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

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) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.


Visa Cyclically Adjusted PB Ratio Related Terms

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


Visa (V) Business Description

Industry
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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