An analysis of Visa

1. Visa

2. Company Overview
 Facilitates electronic funds transfers
 Earns revenues from the issuers and acquirers
Source: Visa 10K report

3. Business
 Debit cards
 Credit cards
 Visa Checkout
 Visa Direct

4. Industry Comparison
Source: Visa 10K report
Source: The Nilson Report

5. Key Operating Metrics
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
FY2013A FY2014A FY2015A FY2016A FY2017A FY2018E
Total payments volume (in billion)
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
FY2013A FY2014A FY2015A FY2016A FY2017A FY2018E
Visa processed transactions (in million)

6. Outlook for Fiscal Full-Year 2018
 Annual revenue growth: low double-digit (from high single
digits)
 Client incentives as percentage of gross revenues: 21.5%-
22% (from 21.5%-22.5%)
 Tax rate: 21%-22% (from 23%)
 GAAP EPS: low 60% (from mid 50%)
 Non-GAAP EPS: high 20% (from mid 20%)

7. SWOT Analysis
Strengths
 Large market share
 Most recognized global
financial services brand
 Engaging in strategic
partnerships
 Low credit risk
Weaknesses
 Heavy dependency on
relationship with clients
and merchants
 Merchants’ and
processors’ continuing to
push lower acceptance
costs

8. SWOT Analysis
Opportunities
 Expansion of cross-border
volume with integration of
Visa Europe
 Cashless economies
Threats
 Competition in market
 Failure in network

9. Performance
 Recommendation: Buy
 DCF value: 133.9