Visa(US:V) Forbes·2025-11-21 16:25Core Insights - Visa (V) stock is considered a wise investment due to its high margins, indicative of pricing power and cash generation, currently offered at a discounted rate [1] - The stock has increased by 3.2% this year but is 39% less expensive based on its Price-to-Sales (P/S) ratio compared to one year ago [3] Financial Performance - Fiscal 2025 saw a net revenue increase of 11%, driven by a 13% rise in high-margin cross-border transaction volume and a 10% boost in processed transactions [4] - Projections for Q1 2026 anticipate net revenue growth at the higher end of low double-digits, with a year-to-date return of 3.29% [4] - Recent profitability metrics include a 57.6% operating cash flow margin and a 66.4% operating margin in the last twelve months [9] - Long-term profitability metrics show approximately 58.9% operating cash flow margin and 66.8% operating margin based on the last three-year average [9] - Visa experienced 11.3% revenue growth in the last twelve months and 10.9% over the last three-year average [9] Valuation - Visa stock is currently available at a P/S multiple of 10.5, representing a 39% discount compared to one year ago [9] - The company has a market capitalization of over $10 billion and high cash flow from operations margins [10] Investment Criteria - Visa meets several investment criteria, including high CFO margins, significant valuation decrease over the past year, and a historical average of 12-month forward returns of nearly 19% with a win rate of about 72% [10]