Visa Inc. (V): A Bull Case Theory 

We came across a bullish thesis on Visa Inc. on Uncle Stock Notes’s Substack. In this article, we will summarize the bulls’ thesis on V. Visa Inc.’s share was trading at $330.39 as of December 1st. V’s trailing and forward P/E were 32.79 and 26.11 respectively according to Yahoo Finance.

Visa Inc. reported robust Q4 and full-year FY2025 results on October 28, reinforcing its reputation as a stable compounder in the global payments ecosystem. Despite a $899 million litigation provision, non-GAAP operating expenses rose just 8%, below revenue growth of 10%, underscoring Visa’s operating leverage and cost discipline. Net revenue reached $10.7 billion, non-GAAP EPS grew 13% to $2.98, and payment volume rose 9%, reflecting continued momentum in the global shift from cash to digital payments.

Cross-border transactions—Visa’s most profitable business—grew 12% year-over-year, driven by the rebound in international travel and e-commerce, fueling strong margin expansion. Beyond its core payments engine, Visa’s new payment flows and value-added services surged over 20%, led by Visa Direct, Visa B2B Connect, and embedded APIs that extend the network into B2B, B2C, and G2C verticals. These newer segments now represent Visa’s “second growth curve,” broadening its reach and deepening integration with fintechs and enterprises.

The company maintained its shareholder-friendly capital strategy with $13.7 billion in buybacks and a 14% dividend increase, supported by $23.9 billion in free cash flow for FY2025. Management guided to low double-digit revenue and EPS growth for FY2026, signaling sustained earnings visibility.

Valuation frameworks—forward P/E of 29–35x and DCF-based intrinsic value of $315–$355—suggest the stock remains reasonably priced given Visa’s growth, profitability, and defensible moat. With its scale, network effects, and expanding role in global commerce, Visa continues to compound value as the infrastructure backbone of digital payments.

Previously we covered a bullish thesis on Visa Inc. (V) by Margin of Sanity in May 2025, which highlighted Visa’s structural dominance, capital efficiency, and enduring moat within the global payments ecosystem. The company’s stock price has depreciated by approximately 9.51% since our coverage. This is because the thesis has not yet played out. The thesis still stands as Visa’s fundamentals and compounding strength remain intact. Uncle Stock Notes shares a similar view but emphasizes Visa’s operating leverage and second growth curve driven by value-added services.

Visa Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 167 hedge fund portfolios held V at the end of the second quarter which was 165 in the previous quarter. While we acknowledge the risk and potential of V as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than V and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.