Orin
VNYSE·Financial - Credit Services

Visa Inc. V

Market cap $674.7BP/E 30.7× trailingGross margin 80.2%Reports Tue 27 Oct, after the close
$361.52
−0.52 (−0.14%)Wed close 16:00 ET
52-wk $293.89 – $385.57
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Orin's take
0.68conviction · moderate
Refreshed 1 Sep · take v8. A new filing or a print queues the next refresh.

Visa's business is accelerating — Q3 FY2026 revenue of $11.63B grew 14.4% YoY, up from 11.3% for the full FY2025, and the company has beaten EPS estimates for eight straight quarters including a 2.8% surprise in the most recent period. Bill Ackman's Pershing Square disclosed a new ~$1.1B position as of June 30, 2026, and smart-money flows remain positive at 0.1171 with fund count rising to 80.

However, at $379.37 the stock trades at 32.2x earnings — a 110.6% premium to the peer median P/E of 15.3 — while the smart-money score has declined from 0.2283 in Q1 2026 and insiders have been net sellers to the tune of $115.6M over 24 months, including recent sales by the CEO and CFO at $364–$371. The franchise earns its premium multiple, but the current price offers insufficient margin of safety for a new position.

What could go wrong

  • Valuation compression. At 32.2x earnings versus a peer median of 15.3x, any deceleration in growth or macro shock could trigger multiple contraction; even MA trades at a similar 32.4x, leaving no relative cushion.
  • Declining smart-money conviction. The smart-money score fell from 0.2283 as of 2026-03-31 to 0.1171 as of 2026-06-30, suggesting institutional enthusiasm is cooling even as fund count holds at 80.
  • Persistent insider selling. Over the trailing 24 months insiders net sold $115.6M in shares; in August 2026 alone the CEO, CFO, and Technology President all sold at $364–$371 per share.
  • Net income growth lagging revenue. FY2025 net income grew only 1.6% YoY versus revenue growth of 11.3%, and EPS growth of 4.8% was well below FY2024's 17.5%, indicating margin pressure or cost headwinds could persist.

What would change my mind

Revenue growth re-acceleration above 15%. Next quarterly report shows YoY revenue growth exceeding 15% with operating margin holding above 59%bullish
Smart-money score turns negative. Next 13F composite (Q3 2026, available ~November 14) shows smart-money score dropping below zerobearish
Multiple contraction to peer range. P/E compresses toward 25x or the premium to peer median narrows below 80%bullish
Operating margin deterioration. Quarterly operating margin falls below 58% for two consecutive quartersbearish

Where this comes from: quarterly_results, period ended 2026-06-30 · fundamentals and derived_metrics, fiscal year ended 2025-09-30 · peer_relative · smart_money, as of 2026-06-30. Orin's read on V; not advice.

Twelve months actual closes to 2026-09-23 · actual filings

Sept 25Nov 25Jan 26Mar 26May 26Jul 26

50-day average 200-day average · volume below

Largest holders · 13F Q2 2026

Money flow
FilerPositionOf fund
Vanguard Capital Management$36.4B0.8% of fund
State Street$28.4B0.8% of fund
Morgan Stanley$15.8B0.8% of fund
Geode Capital Management$15.5B0.8% of fund
Fmr$14.7B0.6% of fund
Vanguard Portfolio Management$12.6B0.6% of fund

229 filers · quarter ended Q2 2026 · positions, not flows

Insiders, last 24 months: 217 Form 4 filings, net −$119.3M. Of the 50 on hand, 0 were open-market purchases and 11 sales— the rest are grants, option exercises and tax withholding.

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Where it trades

vs its own 5y · Financial Services
MetricNowOwn medianSector
P/E30.7×27.8×21.6×
EV/EBITDA23.6×21.8×
P/S15.17×15.28×
P/B19.7×12.6×

Its P/E sits 60th percentile of its own last 5 years (+0.04σ from its own mean).

What the price assumes

13.8%

free-cash-flow growth every year for 10 years, discounted at 10%, is what today’s price implies — starting from $21.6B of trailing free cash flow. It is an assumption the market is making, not a forecast Orin is making.

What Wall Street published

62 firms · 2026-09-23
Consensus target

$422

$350$466 · +17% against today's price

How they rate it
  • 53 buy or overweight
  • 9 hold
  • 0 underweight or sell

The analysts’ consensus and their own ratings, not Orin’s. A target is a twelve-month opinion published by the firm that wrote it.

Against the companies it is compared to

median P/E 14.5× of 5 peers
CompanyMarket capP/EEV/EBITDAGrossNetROE
VVisa Inc.$675B30.7×23.6×80.2%50.8%61%
AXPAmerican Express Company$204B18.3×8.8×84.3%13.6%34%
BACBank of America Corporation$397B12.7×24.1×59.3%17.2%11%
JPMJPMorgan Chase & Co.$904B14.5×19.7×62.6%21.9%18%
MAMastercard Incorporated$491B30.7×22.8×100.0%46.3%232%
PYPLPayPal Holdings, Inc.$45B9.9×6.8×45.8%14.4%24%

The median is of the 5 peers listed above and nothing else — check it against the column. This company trades 111.7% above it. The peer set is the vendor’s, so a company can appear here that a person would not have chosen.

What it has traded at

P/E by fiscal year
FY14 24.7×FY25 33.4×

What its sector has traded at

Financial Services
FY14 29.6×FY26 23.9×

Two scales, drawn separately on purpose: a sector median and one company’s multiple are not the same number and putting them on one axis invites a comparison neither series supports.

Discounted cash flow

not recomputed since
ModelFair valueAgainstComputed
Standard DCF$224$320.88 · −30%2026-06-10
Levered DCF$252$320.88 · −22%2026-06-10

The vendor’s intrinsic-value models. Treat them as a low-growth anchor — for a fast grower the market routinely pays well above a DCF. These were computed against the price in the “against” column, not today’s.

Every estimate on one scale

price $361.52
52-week range$294 – $386
Analyst targets$350 – $466
Standard DCF$224 as of 2026-06-10, when it was $320.88
Levered DCF$252 as of 2026-06-10, when it was $320.88
At own 5y-median P/E (28×)$327
At 5y P/E range (25–39×)$299 – $454
At sector P/E (22×)$254

The vertical rule is the current price. Ranges and point estimates are the backend’s, published as they were calculated; an arrow means the estimate sits beyond this scale, and its number is on the right.