Visa Inc. (V) DCF Valuation
Visa DCF: $19B TTM FCF, 60%+ operating margin, 10% near-term growth on payments volume.
Financials · Founded 2007 (IPO) · Beta 0.95
Visa Inc.
Current price: $290.40 · Market cap ≈ $522.7B
Visa's $19B TTM free cash flow grows in lockstep with global consumer payments volume. The asset-light network business produces 60%+ operating margins with minimal capital intensity. The $10B net cash position and tiny capex needs mean nearly all FCF converts to dividend + buyback. Long-term tailwind from cash displacement in emerging markets.
DCF Valuation Inputs
High-growth phase
Decay/growth normalization
Perpetual (≤ WACC)
Must be > terminal growth
in millions
Enterprise Value
$495M
Equity Value
$505M
Per Share
$0
Upside / (Downside)
-100.0%
PV of explicit FCF
$97M
Terminal value
$586M
PV of terminal
$399M
Terminal % of EV
80.5%
| Year | Growth | FCF ($M) | Discount Factor | PV ($M) |
|---|---|---|---|---|
| 0 | base | $19 | 1.000 | — |
| 1 | 10.0% | $21 | 0.926 | $19 |
| 2 | 8.0% | $23 | 0.857 | $19 |
| 3 | 8.0% | $24 | 0.794 | $19 |
| 4 | 8.0% | $26 | 0.735 | $19 |
| 5 | 8.0% | $28 | 0.681 | $19 |
| Terminal | perpetual | — | — | $399 |
Discount factor = 1 / (1 + WACC)ⁿ. Terminal value computed using the Gordon Growth Model: TV = FCF_N × (1 + g) / (WACC − g), then discounted back to present.
| g ＼ WACC | 6.0% | 7.0% | 8.0% | 9.0% | 10.0% |
|---|---|---|---|---|---|
| 2.0% | $0 | $0 | $0 | $0 | $0 |
| 2.5% | $0 | $0 | $0 | $0 | $0 |
| 3.0% | $0 | $0 | $0 | $0 | $0 |
| 3.5% | $0 | $0 | $0 | $0 | $0 |
| 4.0% | $0 | $0 | $0 | $0 | $0 |
Highlighted cell is your current WACC × terminal-growth assumption. Cells beyond WACC ≤ g are undefined (Gordon Growth fails).
V DCF: At Default Assumptions
| Item | Value | Notes |
|---|---|---|
| Current price | $290.40 | Market |
| Intrinsic value (per share) | $0.28 | DCF model output |
| Upside / (Downside) | -99.9% | vs current price |
| Enterprise value | $$495M | PV of explicit FCF + terminal |
| Equity value | $$505M | EV − net debt |
| Key fact | Operating margin: ~60% (asset-light network) | |
Numbers reflect TTM fundamentals + default DCF assumptions (8.0% WACC, 3.0% terminal growth, 10% Year-1 growth, 8% Years 2+). Use the calculator above to run your own scenario.
V Sources & References
- SEC EDGAR: latest 10-K filing, 10-Q filings, and proxy statement for Visa Inc. (V).
- Yahoo Finance: real-time price snapshot, analyst consensus growth estimates, and 52-week range.
- S&P Capital IQ: WACC build (cost of equity via CAPM + after-tax cost of debt).
- Federal Reserve Economic Data (FRED): risk-free rate for CAPM, sector beta benchmarks.
- Damodaran Online (NYU): Financials sector WACC and beta benchmarks for cross-validation.
DCF models for other large-caps
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Author
Maya Chen, CFA
Chartered Financial Analyst
Independently reviewed
Dr. Aaron Pak, PhD
Doctor of Kinesiology & Public Health
Last reviewed: August 12, 2026 · Next scheduled review: quarterly
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Cross-checked against authoritative formulas (IRS, NIST, ACM) and updated for 2025/2026 tax years and rates.
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