VNEUTRAL

V PEG Ratio Analysis

0.98x

Higher than 75% of Financial Services sector peers

Updated 269h ago·SEC filings & market data

Key Takeaway

The PEG ratio (price-to-earnings divided by earnings growth rate) blends valuation with expected growth; at 0.98x, Visa’s stock price is roughly in line with its projected earnings growth, often seen as fairly valued.

Sector Performance

75th percentile

V

0.98x

Sector Median

0.26x

Sector Avg

2.18x

Prior Period

0.92x(Jun 2026)

↓ Declining
📊

Deep Analysis

The PEG ratio (price-to-earnings divided by earnings growth rate) blends valuation with expected growth; at 0.98x, Visa’s stock price is roughly in line with its projected earnings growth, often seen as fairly valued.

Compared to the Financial Services sector median of 0.34x, Visa’s PEG sits at the 74th percentile among peers, meaning it trades at a higher multiple relative to growth than most sector companies. The metric has been stable over the last eight quarters, with a year-over-year increase of +14.0% and a quarter-over-quarter increase of +6.5%, indicating a gradual upward drift rather than a sharp move. A PEG near 1.0 combined with a stable but rising trend implies moderate valuation risk — the stock is not obviously cheap, but its growth profile justifies its premium over the sector median. This metric supports the overall NEUTRAL verdict: the PEG ratio does not signal a clear mispricing, consistent with a balanced outlook.

Frequently Asked Questions

What does the PEG Ratio tell investors about V?

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

How is the PEG Ratio calculated?

PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.

How does V's PEG Ratio compare to its sector?

V's PEG Ratio of 0.98x compares to a Financial Services sector median of 0.26x, placing it in the 75th percentile.

Who are V's closest peers by PEG Ratio?

The closest Financial Services peers by PEG Ratio include: SOFI (0.26x), ARES (0.27x), AMP (0.19x), ITUB (0.18x), NU (0.39x).

The Formula

P/E Ratio / EPS Growth Rate

Why It Matters

The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.

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V

0.98x

Sector Median

0.26x

Sector Avg

2.18x

How V's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.