Is Visa, Inc. overvalued or undervalued?

As of 22 January 2025, Visa, Inc. has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics. The P/E ratio stands at 34, while the EV to EBITDA ratio is 27.23, and the ROE is an impressive 54.72%.
In comparison to its peers, Visa's P/E ratio of 34 is lower than Mastercard, Inc. at 58.16, which is considered very expensive, but higher than PayPal Holdings, Inc. at 16.85, which is very attractive. Additionally, Copart, Inc. has a fair valuation with a P/E of 31.46. While Visa's stock has outperformed the S&P 500 over the past year with a return of 24.90% compared to 10.26% for the index, the current valuation suggests that it is fairly priced in the market context.