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Visa (NEOE:VISA) Shiller PE Ratio : 49.87 (As of May. 13, 2024)


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What is Visa Shiller PE Ratio?

As of today (2024-05-13), Visa's current share price is C$26.93. Visa's E10 for the quarter that ended in Mar. 2024 was C$0.54. Visa's Shiller PE Ratio for today is 49.87.

The historical rank and industry rank for Visa's Shiller PE Ratio or its related term are showing as below:

NEOE:VISA' s Shiller PE Ratio Range Over the Past 10 Years
Min: 39.22   Med: 65.13   Max: 77.6
Current: 50.31

During the past years, Visa's highest Shiller PE Ratio was 77.60. The lowest was 39.22. And the median was 65.13.

NEOE:VISA's Shiller PE Ratio is ranked worse than
83.17% of 303 companies
in the Credit Services industry
Industry Median: 14.56 vs NEOE:VISA: 50.31

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Visa's adjusted earnings per share data for the three months ended in Mar. 2024 was C$0.246. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is C$0.54 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Visa Shiller PE Ratio Historical Data

The historical data trend for Visa's Shiller PE 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 Shiller PE Ratio Chart

Visa Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 66.31 66.62 61.99 39.25 43.52

Visa Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Shiller PE 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 46.18 46.80 43.52 47.92 50.01

Competitive Comparison of Visa's Shiller PE Ratio

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

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

* The bar in red indicates where Visa's Shiller PE Ratio falls into.



Visa Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Visa's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=26.93/0.54
=49.87

* 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 E10 for the quarter that ended in Mar. 2024 is calculated as:

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

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.246/129.4194*129.4194
=0.246

Current CPI (Mar. 2024) = 129.4194.

Visa Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 0.046 100.560 0.059
201409 0.038 100.428 0.049
201412 0.058 99.070 0.076
201503 0.063 99.621 0.082
201506 0.068 100.684 0.087
201509 0.065 100.392 0.084
201512 0.087 99.792 0.113
201603 0.074 100.470 0.095
201606 0.017 101.688 0.022
201609 0.082 101.861 0.104
201612 0.091 101.863 0.116
201703 0.019 102.862 0.024
201706 0.091 103.349 0.114
201709 0.088 104.136 0.109
201712 0.108 104.011 0.134
201803 0.114 105.290 0.140
201806 0.104 106.317 0.127
201809 0.127 106.507 0.154
201812 0.138 105.998 0.168
201903 0.139 107.251 0.168
201906 0.144 108.070 0.172
201909 0.141 108.329 0.168
201912 0.152 108.420 0.181
202003 0.153 108.902 0.182
202006 0.115 108.767 0.137
202009 0.102 109.815 0.120
202012 0.144 109.897 0.170
202103 0.137 111.754 0.159
202106 0.114 114.631 0.129
202109 0.166 115.734 0.186
202112 0.186 117.630 0.205
202203 0.171 121.301 0.182
202206 0.162 125.017 0.168
202209 0.197 125.227 0.204
202212 0.214 125.222 0.221
202303 0.220 127.348 0.224
202306 0.211 128.729 0.212
202309 0.243 129.860 0.242
202312 0.254 129.419 0.254
202403 0.246 129.419 0.246

Add all the adjusted EPS together and divide 10 will get our E10.

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  (NEOE:VISA) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Visa Shiller PE Ratio Related Terms

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


Visa (NEOE:VISA) Business Description

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.

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