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DCF Valuation
Base-case fair value
$199.52
Intrinsic $266.02 · 25% MOS
Current price: $327.24
Base-case summary
Our base-case DCF for Visa Inc. (V) projects 10 years of free cash flow growth at 7.8% for years 1–5 and 3.9% for years 6–10, anchored to 7.8% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $21.2B in trailing free cash flow, this produces an intrinsic value of $266.02 per share. A 25% safety margin gives a fair value of $199.52, suggesting the stock is currently 39% overvalued against the $327.24 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$21.2B
Cash & equivalents
$12.4B
Total debt
$24.0B
Shares outstanding
1.9B