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's P/E ratio stands at 34, the Price to Book Value is 18.88, and the EV to EBITDA ratio is 27.23. In comparison to peers, Mastercard, Inc. has a higher P/E of 58.32, while PayPal Holdings, Inc. shows a much lower P/E of 15.30, indicating that Visa is positioned reasonably within its competitive landscape.
Despite recent underperformance against the S&P 500, with a year-to-date return of 8.18% compared to the index's 13.30%, Visa's strong ROCE of 61.56% and ROE of 54.72% suggest solid operational efficiency and profitability. Overall, Visa, Inc. is fairly valued in the current market context.