A Snapshot Of Visa's Business And Outlook

Visa (NYSE: V) has seen its revenue grow at a CAGR of 17% and its stock jump 1.7x between 2015 and 2017. The company has seen a significant growth in its transaction volumes, supported by the transition towards digital payments and Visa’s expansion. Visa is in an extremely strong position operationally; it has huge scale, as its credit and debit cards are accepted almost universally, a large number of co-branding partners, and its cards in circulation and volume of transactions processed far exceed those of its rivals.

Our price estimate for Visa’s stock stands at $96, which is below the market price following the rally in 2017. We expect the company’s overall revenues to grow by nearly 23% in 2018. Our interactive dashboard shows the historical trends and our expectations for the company’s FY’18 top line; you can modify the key value drivers to see how they impact the company’s results.

Revenue Forecasts

Transaction revenue accounts for about a third of Visa’s overall revenues. The company has seen significant growth in its transaction volumes, supported by Visa’s expanding coverage and increased uptake of cards. The company’s focus on improving technology to enhance payments has further helped it expand its customer base and co-branding partners, and consequently drive growth in volumes and revenues.

International transaction fees account for 28% of the overall revenue. With the recovery in global economic conditions, we saw improved consumer spending and international adoption of credit cards. Additionally, the company’s expansion in developing markets has driven international GDV and revenue.

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Visa (NYSE: V) has seen its revenue grow at a CAGR of 17% and its stock jump 1.7x between 2015 and 2017. The company has seen a significant growth in its transaction volumes, supported by the transition towards digital payments and Visa’s expansion. Visa is in an extremely strong position operationally; it has huge scale, as its credit and debit cards are accepted almost universally, a large number of co-branding partners, and its cards in circulation and volume of transactions processed far exceed those of its rivals.

Our price estimate for Visa’s stock stands at $96, which is below the market price following the rally in 2017. We expect the company’s overall revenues to grow by nearly 23% in 2018. Our interactive dashboard shows the historical trends and our expectations for the company’s FY’18 top line; you can modify the key value drivers to see how they impact the company’s results.

Revenue Forecasts

Transaction revenue accounts for about a third of Visa’s overall revenues. The company has seen significant growth in its transaction volumes, supported by Visa’s expanding coverage and increased uptake of cards. The company’s focus on improving technology to enhance payments has further helped it expand its customer base and co-branding partners, and consequently drive growth in volumes and revenues.

International transaction fees account for 28% of the overall revenue. With the recovery in global economic conditions, we saw improved consumer spending and international adoption of credit cards. Additionally, the company’s expansion in developing markets has driven international GDV and revenue.

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