Visa Inc. (NYSE: V): Visa Inc. (Visa) is a payments technology company that provides digital payments across more than 200 countries and territories. The Company connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments.
Why Should Investor Exit?
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
Source: Analysis by Kalkine Group
Visa's stock price has increased by 9.17% in the past month and is entering a range-bound zone, with the supports placed at the higher end of the range, currently trading close to the mid-point of its 52-week range of USD 252.67 to USD 186.67. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at ~43.31. We have valued the stock using the EV/Sales multiple-based relative valuation methodology and arrived at a target price of USD 171.73.
Considering the decline in cash position, high leverage, overvalued multiples, intense competition, and current valuation, we recommend a "Sell" rating on the stock at the closing price of USD 211.40 as of April 12, 2022.
1-Year Technical Price Chart (as of April 12, 2022). Source: REFINITIV, Analysis by Kalkine Group
*The reference data in this report has been partly sourced from REFINITIV.