Is Visa, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Visa, Inc. moved from very expensive to fair. Based on the current metrics, Visa appears to be fairly valued. The company has a P/E ratio of 34, an EV to EBITDA ratio of 27.23, and a Price to Book Value of 18.88, which are competitive compared to its peers. For instance, Mastercard, Inc. has a significantly higher P/E ratio of 58.32, while PayPal Holdings, Inc. stands out with a much lower P/E of 15.30, indicating Visa's relative valuation is more attractive in comparison.
In terms of recent performance, Visa's stock has returned 17.73% over the past year, outperforming the S&P 500's return of 14.08%. However, over longer periods, such as the 5-year return, Visa's 70.72% lags behind the S&P 500's impressive 91.29%. Overall, Visa's current valuation metrics suggest it is fairly positioned within its industry, especially when considering its strong ROE of 54.72% and ROCE of 61.56%.