uploads///EV to EBITDA

Behind Visa’s Payment Volumes


Feb. 13 2018, Updated 7:34 a.m. ET

Total payment volumes

Visa (V) reported total payment volumes of $2.0 trillion in fiscal 1Q18, while in fiscal 1Q17, its payment volumes were $1.8 trillion. This difference reflected a 10% YoY (year-over-year) rise on a constant-dollar basis.

Among all regions, CEMEA (Central Europe, the Middle East, and Africa) saw the highest YoY growth in fiscal 1Q18 at 19% on a constant-dollar basis thanks to the Middle East’s Gulf countries.

The Latin American region saw payment volumes amounting to $112 billion in fiscal 1Q18, reflecting a rise of 14% on a YoY basis as Argentina witnessed positive momentum.

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Visa’s EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple stands at 21.19x on a trailing-12-month basis. The EV-to-EBITDA multiples of its peers (XLF) Green Dot (GDOT), Fiserv (FISV), and Total System Services (TSS) are 24.83x, 16.80x, and 16.49x, respectively, on a trailing-12-month basis.

Canada, Europe, and Asia-Pacific

In fiscal 1Q18, Visa saw payment volumes of $68 billion in Canada, implying a rise of 11% YoY on a constant-dollar basis. The company saw $881 billion in payment volumes in the US region in fiscal 1Q18, which reflected a 10% YoY rise on a constant-dollar basis thanks to the holiday season and consumer credit.

In fiscal 1Q18, Visa witnessed $416 billion in payment volumes from the European region, implying a 9% rise YoY on a constant-dollar basis aided by Southeast Europe and Turkey.

Of Visa’s total payment volumes, the Asia-Pacific region contributed $465 billion in fiscal 1Q18, representing an 8% rise YoY on a constant-dollar basis as favorable momentum was seen in Taiwan and Australia.


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