How to buy Visa shares | $197.25
Own Visa shares in just a few minutes.
Visa Inc is a credit services business with stocks listed in the US. Visa shares (V) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$197.25 – a decrease of 0.1% over the previous week.
How to buy shares in Visa
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Visa. Find the share by name or ticker symbol: V. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Visa reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$197.25, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Visa, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Visa. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Visa key stats
- Compare share trading platforms
- Is Visa stock a buy or sell?
- Visa performance over time
- Can I short Visa shares?
- Is Visa suitable for ethical investing?
- Are Visa shares over-valued?
- Visa's financials
- How volatile are Visa shares?
- Does Visa pay a dividend?
- Have Visa shares ever split?
- Other common questions
Visa share priceUse our graph to track the performance of V stocks over time.
Visa shares at a glance
|Latest market close||USD$197.25|
|52-week range||USD$133.93 - USD$217.35|
|50-day moving average||USD$203.314|
|200-day moving average||USD$187.3262|
|Dividend yield||USD$1.2 (0.61%)|
|Earnings per share (TTM)||USD$5.262|
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Is it a good time to buy Visa stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Visa price performance over time
|1 week (2020-09-22)||-1.65%|
|1 month (2020-08-28)||-8.56%|
|3 months (2020-06-29)||3.07%|
|6 months (2020-03-27)||22.09%|
|1 year (2019-09-27)||13.36%|
|2 years (2018-09-28)||31.42%|
|3 years (2017-09-29)||87.43%|
|5 years (2015-09-29)||187.83%|
Is Visa under- or over-valued?
Valuing Visa stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Visa's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Visa's P/E ratio
Visa's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 37x. In other words, Visa shares trade at around 37x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Visa's PEG ratio
Visa's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.2921. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Visa's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Visa's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$15.5 billion.
The EBITDA is a measure of a Visa's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$22.9 billion|
|Operating margin TTM||65.95%|
|Gross profit TTM||US$22.3 billion|
|Return on assets TTM||12.73%|
|Return on equity TTM||33.34%|
|Market capitalisation||US$429.3 billion|
TTM: trailing 12 months
Shorting Visa shares
There are currently 28.4 million Visa shares held short by investors – that's known as Visa's "short interest". This figure is 20.9% down from 35.8 million last month.
There are a few different ways that this level of interest in shorting Visa shares can be evaluated.
Visa's "short interest ratio" (SIR)
Visa's "short interest ratio" (SIR) is the quantity of Visa shares currently shorted divided by the average quantity of Visa shares traded daily (recently around 8.0 million). Visa's SIR currently stands at 3.55. In other words for every 100,000 Visa shares traded daily on the market, roughly 3550 shares are currently held short.
However Visa's short interest can also be evaluated against the total number of Visa shares, or, against the total number of tradable Visa shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Visa's short interest could be expressed as 0.01% of the outstanding shares (for every 100,000 Visa shares in existence, roughly 10 shares are currently held short) or 0.0168% of the tradable shares (for every 100,000 tradable Visa shares, roughly 17 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Visa.
Find out more about how you can short Visa stock.
Visa's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Visa.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Visa's total ESG risk score
Total ESG risk: 18.34
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Visa's overall score of 18.34 (as at 07/31/2020) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Visa is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Visa's environmental score
Environmental score: 2.61/100
Visa's environmental score of 2.61 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Visa is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Visa's social score
Social score: 11.33/100
Visa's social score of 11.33 puts it squarely in the 3rd percentile of companies rated in the same sector. This could suggest that Visa is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Visa's governance score
Governance score: 8.4/100
Visa's governance score puts it squarely in the 3rd percentile of companies rated in the same sector. That could suggest that Visa is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Visa's controversy score
Controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Visa scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Visa hasn't always managed to keep its nose clean.
Environmental, social, and governance (ESG) summary
|Total ESG score||18.34|
|Total ESG percentile||14.4|
|Environmental score percentile||3|
|Social score percentile||3|
|Governance score percentile||3|
|Level of controversy||3|
Visa share dividends
Dividend payout ratio: 21.86% of net profits
Recently Visa has paid out, on average, around 21.86% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.61% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Visa shareholders could enjoy a 0.61% return on their shares, in the form of dividend payments. In Visa's case, that would currently equate to about $1.2 per share.
While Visa's payout ratio might seem low, this can signify that Visa is investing more in its future growth.
Visa's most recent dividend payout was on 31 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 12 August 2020 (the "ex-dividend date").
Have Visa's shares ever split?
Visa's shares were split on a 4:1 basis on 18 March 2015. So if you had owned 1 share the day before before the split, the next day you'd have owned 4 shares. This wouldn't directly have changed the overall worth of your Visa shares – just the quantity. However, indirectly, the new 75% lower share price could have impacted the market appetite for Visa shares which in turn could have impacted Visa's share price.
Visa share price volatility
Over the last 12 months, Visa's shares have ranged in value from as little as US$133.93 up to US$217.35. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Visa's is 0.8986. This would suggest that Visa's shares are less volatile than average (for this exchange).
Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. has a strategic partnership with NovoPayment to enable financial institutions and merchants to deploy Visa's digital solutions in Latin America and the Caribbean; and a strategic agreement with Intuit Inc. The company was founded in 1958 and is headquartered in San Francisco, California.
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