VNEUTRAL

V P/E Ratio Analysis

30.9x

Higher than 77% of Financial Services sector peers

Updated 273h ago·SEC filings & market data

Key Takeaway

The P/E ratio measures the price investors pay for each dollar of current earnings, so Visa’s 30.9x means the stock trades at roughly 31 times its annual profit per share.

Sector Performance

77th percentile

30.9x

Sector Median

13.2x

Sector Avg

19.3x

Prior Period

31.1x(Aug 2026)

→ Stable

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Deep Analysis

The P/E ratio measures the price investors pay for each dollar of current earnings, so Visa’s 30.9x means the stock trades at roughly 31 times its annual profit per share.

That is far above the sector median of 13.2x, placing Visa in the 77th percentile among Financial Services peers, which signals a premium valuation relative to most companies in its industry. The ratio has been stable over the last eight quarters, with a year-over-year change of -0.5% and a quarter-over-quarter change of -0.4%, showing no material shift in market pricing. A high but steady multiple implies that investors are not expanding or contracting their earnings expectations; this reduces near-term valuation-driven downside while still leaving little margin for disappointment. The level suggests above-average growth is already priced in, and the flat trend indicates that expectation has been consistent over time. This metric supports the overall NEUTRAL verdict: the stable premium valuation justifies neither an overweight nor an underweight stance without new information.

Frequently Asked Questions

What does the P/E Ratio tell investors about V?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

How does V's P/E Ratio compare to its sector?

V's P/E Ratio of 30.9x compares to a Financial Services sector median of 13.2x, placing it in the 77th percentile.

Who are V's closest peers by P/E Ratio?

The closest Financial Services peers by P/E Ratio include: PFG (13.2x), AFL (12.9x), HSBC (12.8x), AIG (13.7x), RJF (12.7x).

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Learn More About P/E Ratio

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.