Monday, May 15, 2023

Visa Valuation

 


Visa Inc, the credit card and basically a financial technology, fintech company is trading at circa 475 billion USD market capitalization. Which is a huge market capitalization value.

In short, Visa Inc is overvalued is Wolfteam Ltd.'s corporate view.

Visa exhibits staggering net profit margins at around 50 %, having in mind that most fintech companies are losing huge amount of money.

But still at a Price/Earnings of circa 31 and Price Sales of approximately 16 Visa Inc seems overvalued.

Even though fintech is a large part of the future of finance and ultimately the global economy.

That said, if Visa's revenue goes on growing by more than 20 % as it did in 2022, Visa could soon grow into its valuation.


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