V is now overvalued and could go down -40%

Based on our analysis, Visa has received an overvalued rating of 1 out of 5 stars from Cashu. Several financial ratios indicate that the company may be overextended in its current valuation compared to its sector peers. Visa’s Price to Earnings (PE) Ratio stands at 34.25, significantly higher than the sector average of 12.19. A high PE ratio suggests that investors are willing to pay more for each dollar of earnings, which could imply overvaluation versus its peers. Additionally, Visa's Price to Book (PB) Ratio is 13.81, compared to the sector average of 1.12. This metric indicates that investors are paying substantially more for each dollar of net assets, which may not be justified given the competitive landscape. The Dividend Yield for Visa is at 0.65%, while the sector average is 3.30%. A lower yield suggests that Visa is returning less cash to shareholders as dividends compared to its peers, which may concern investors looking for income. Furthermore, while Visa excels in profitability with a Net Profit Margin of 54.95 and a Return on Equity (ROE) of 50.45, these strengths do not negate the concerns raised by the other ratios. The company’s Return on Assets (ROA) ratio of 20.89 also far exceeds the sector average of 0.88, indicating efficient asset use. However, the high valuations in other areas warrant caution. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.