VNEUTRAL

V Return on Equity (ROE) Analysis

61.2%

Higher than 100% of Financial Services sector peers

Updated 925h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity, and Visa's 61.2% means it earns $0.612 for each dollar of equity.

Sector Performance

100th percentile

61.2%

Sector Median

13.3%

Sector Avg

19.5%

Prior Period

60.3%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity, and Visa's 61.2% means it earns $0.612 for each dollar of equity.

This far exceeds the sector median of 13.6%, placing Visa at the 100th percentile among Financial Services peers. The trend shows no year-over-year data (N/A), but quarter-over-quarter ROE rose 1.5% from 60.3% to 61.2%. A very high ROE with a slight quarterly increase suggests strong profit generation relative to equity, which can lower investment risk but also may attract competition or reflect high leverage. The level and modest upward trend present an opportunity for income-focused investors, though the lack of longer-term trend data limits trend analysis. This metric supports the NEUTRAL verdict because while the ROE is exceptionally high, it does not alone justify a bullish or bearish stance.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about V?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does V's Return on Equity (ROE) compare to its sector?

V's Return on Equity (ROE) of 61.2% compares to a Financial Services sector median of 13.3%, placing it in the 100th percentile.

Who are V's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (12.9%), HDB (13.8%), AFL (12.4%), ARES (12.3%), BRK-B (12.1%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.