Executive Summary
Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, platforms, and value-added services. It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands. Since being founded in 1958 they now control 40% of the global market shares in payments processing across the globe and possess the most secure and reliable digital transaction processing infrastructure in the industry with a net worth of over $500 billion. The company operates in an essential, irreplaceable industry and their network cannot be replicated ensuring their financial security. Visa has been dominating the market for 15 years (with impressive increasing net income over these years) and has maintained a superiority over their competitors over this time period and appears to be performing extremely well as it is currently the 10th most valued company in the world. The company is listed on New York Stock Exchange, S&P 500 stock market and Dow Jones Industrial Average, at a stock price of $240 per share. Based on the Discounted Cash Flow and Multiples valuation, the Visa Inc stock is undervalued and a buy recommendation is issued.