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Is this Large Market Cap Stock target price reasonable for Visa Inc. (NYSE:V)?

The company in question is, Visa Inc. (NYSE:V) currently with a stock price of 82.53 (0.65% today). The market cap for Visa Inc. is 193174.67, and is in the sector Financial, and Credit Services industry. The target price for Visa Inc. is 91.14. Currently Visa Inc. is trading with a P/E of 40.82, and a forward P/E of 24.84. Average volume for Visa Inc. is 8775.06 and so far today it is 8103500.

Performance in the last year for Visa Inc. has been 20.20%. For EPS growth, Visa Inc. has seen a growth of 19.50%, and is looking to grow in the next year to 19.07%. More long term stats show that EPS growth has been 30.70% over the last five years and could be 16.07% for the next five years. Visa Inc. has seen sales growth quarter over quarter at 3.20%, with EPS growth quarter over quarter at -75.10%. The 20-day simple moving average is 5.08%, with the 200-day simple moving average coming to 7.78%.

Since the IPO date for Visa Inc. on the 3/19/2008, Visa Inc. has seen performance year to date to be 7.01%. With Visa Inc. trading at 82.53, the dividend yield is 0.68%, and the EPS is 2.02.

So could Visa Inc., be undervalued? Well as said before P/E is 40.82. The PEG is 2.54, P/S is 13.42 and the P/B is at 5.97. The P/cash is 22.07, with P/free cash flow at 63.69.

Visa Inc. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.8. This is with long term debt/equity at 0.48, and total debt/equity at 0.48.

In terms of margins, Visa Inc. has a gross margin of *TBA, an operating margin of 52.40% and a profit margin of 38.60%.Payout ratio for Visa Inc. is 23.40%. Return on assets come to 10.50% with return on investment coming to 21.40%.

Insider ownership for Visa Inc., is at 0.06% and institutional ownership comes to 93.30%. Outstanding shares are at 2340.66. While shares float is 1880.26. The float short is currently 2.93%, and short ratio is 6.27.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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