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Visa Has a Premium Valuation after Strong Q4 Results

Andrew Brunton
Visa Has a Premium Valuation after Strong Q4 Results

At current market prices, Visa (V) trades at a premium valuation to most of its peers except Mastercard (MA) and PayPal (PYPL). The trailing-12-month (or TTM) PE ratio for Visa is 29.2x, which is lower than Mastercard’s and PayPal’s multiples of 34.7x and 36.4x, respectively. However, Visa’s PE ratio is much higher than its other peer, Global Payments (GPN), which trades at a multiple of 23.8x.