Is Visa Getting Too Expensive?
Visa (NYSE: V) is one of the largest global payment technology companies in the world. Its name is synonymous with convenience and reliability, and its cards are accepted by a wide variety of merchants and retailers around the globe.
The payments giant recently reported an impressive full-year 2019 result, with net revenues up 11% year over year and GAAP net income up 17% year over year. For a $394 billion company to be able to report double-digit growth in both revenue and net income is truly outstanding, and Visa's operational statistics also paint a very rosy picture. Payments volume for the year was up 5.7% year over year to $8.78 trillion, while processed transactions in the fourth quarter of 2019 saw an 11% year-over-year jump to 53.2 million transactions. Since Visa makes money from both the number and total value of transactions, these numbers are indeed encouraging for investors.
Visa feels like an unstoppable behemoth, but let's slow down a little and think about the company's valuation. Could the business be getting a little too expensive for comfort?
Source Fool.com
