Visa Inc. (V) Valuation
Rating: Fairly Valued
12-Month Fair Value: $260 – $295 – $330
Confidence: HIGH
Post Q1 FY2026 earnings update. Solid quarter: $10.9B net revenue (+15% YoY, beat by $220M), $3.17 non-GAAP EPS (+15%). Value-added services surged +28% (constant $), contributing ~50% of revenue growth. Cross-border +12%, Visa Direct +23%. But processed transactions slightly missed (69.4B vs 69.7B est), guidance reiterated not raised, and $708M DOJ litigation provision creates overhang. DCF $289 anchored by WACC 8.5%/TG 3%, P/E $361 (28x × $12.90). At $332 (26x FY26E), Visa trades near fair value of $320. Long-term R/R attractive at 4.02:1 but near-term limited at 0.92:1. Accumulate on pullback to $290-310.
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