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Visa (V) Cyclically Adjusted Price-to-FCF : 45.91 (As of Apr. 27, 2024)


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What is Visa Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Visa's current share price is $274.52. Visa's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $5.98. Visa's Cyclically Adjusted Price-to-FCF for today is 45.91.

The historical rank and industry rank for Visa's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

V' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 37.09   Med: 63.77   Max: 72.51
Current: 45.99

During the past years, Visa's highest Cyclically Adjusted Price-to-FCF was 72.51. The lowest was 37.09. And the median was 63.77.

V's Cyclically Adjusted Price-to-FCF is ranked worse than
84.31% of 102 companies
in the Credit Services industry
Industry Median: 10.035 vs V: 45.99

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Visa's adjusted free cash flow per share data for the three months ended in Mar. 2024 was $2.088. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $5.98 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Visa Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Visa's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

Visa Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.00 63.54 57.96 37.07 39.67

Visa Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF 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 42.50 42.98 39.67 44.36 46.64

Competitive Comparison of Visa's Cyclically Adjusted Price-to-FCF

For the Credit Services subindustry, Visa's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Visa's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Visa's Cyclically Adjusted Price-to-FCF falls into.



Visa Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Visa's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=274.52/5.98
=45.91

* 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 Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Visa's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=2.088/129.4194*129.4194
=2.088

Current CPI (Mar. 2024) = 129.4194.

Visa Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.730 100.560 0.940
201409 0.628 100.428 0.809
201412 0.669 99.070 0.874
201503 0.358 99.621 0.465
201506 0.832 100.684 1.069
201509 0.654 100.392 0.843
201512 0.763 99.792 0.990
201603 0.298 100.470 0.384
201606 0.072 101.688 0.092
201609 0.948 101.861 1.204
201612 0.965 101.863 1.226
201703 0.104 102.862 0.131
201706 1.401 103.349 1.754
201709 1.132 104.136 1.407
201712 1.136 104.011 1.414
201803 1.157 105.290 1.422
201806 1.537 106.317 1.871
201809 1.423 106.507 1.729
201812 1.369 105.998 1.671
201903 0.837 107.251 1.010
201906 1.408 108.070 1.686
201909 1.683 108.329 2.011
201912 1.645 108.420 1.964
202003 0.504 108.902 0.599
202006 1.283 108.767 1.527
202009 0.872 109.815 1.028
202012 1.524 109.897 1.795
202103 1.446 111.754 1.675
202106 1.939 114.631 2.189
202109 1.729 115.734 1.933
202112 1.880 117.630 2.068
202203 1.504 121.301 1.605
202206 2.357 125.017 2.440
202209 2.639 125.227 2.727
202212 1.866 125.222 1.929
202303 1.744 127.348 1.772
202306 2.645 128.729 2.659
202309 3.208 129.860 3.197
202312 1.637 129.419 1.637
202403 2.088 129.419 2.088

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

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  (NYSE:V) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Visa Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Visa's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Visa (V) Business Description

Industry
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.
Executives
Rajat Taneja officer: PRESIDENT, TECHNOLOGY C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, LEGAL DEPT., REDWOOD CITY CA 94065
Ryan Mcinerney officer: PRESIDENT C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Kelly Alfred F Jr director, officer: CHAIRMAN & CEO AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Chris Suh officer: CHIEF FINANCIAL OFFICER C/O CARDLYTICS, INC., 675 PONCE DE LEON AVE. NE, STE 6000, ATLANTA GA 30308
Vasant M Prabhu officer: VICE CHAIR, CFO C/O SAFEWAY INC, 5918 STONERIDGE MALL ROAD, PLEASANTON CA 94588
Tullier Kelly Mahon officer: V.CHAIR, CHF PPL & ADM OFF C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Lloyd Carney director C/O MICROMUSE INC, 139 TOWNSEND ST, SAN FRANCISCO CA 94107
Pam Murphy director 1201 S. 2ND STREET, MILWAUKEE WI 53204
Julie B Rottenberg officer: GENERAL COUNSEL C/O VISA INC, POB 8999, SAN FRANCISCO CA 94128
Kermit R Crawford director 200 WILMOT ROAD, DEERFIELD IL 60015
Peter M Andreski officer: GBL CORP CONTROLLER, CAO C/O VISA INC., POB 8999, SAN FRANCISCO CA 94128
Teri List director 2200 PENNSYLVANIA AVENUE, SUITE 800W, WASHINGTON DC 20037
Robert W Matschullat director C/O THE CLOROX COMPANY, 1221 BROADWAY, OAKLAND CA 94612
James H Hoffmeister officer: GBL CORP CONTROLLER, CAO C/O VISA INC., PO BOX 8999, SAN FRANCISCO CA 94128
Paul D Fabara officer: CHIEF RISK OFFICER 200 VESEY STREET, NEW YORK NY 10285