Visa's management score of 100 reflects a return on invested capital of 28.4% against a debt to equity ratio of 0.7x, paired with an 80.4% gross margin. The moat score of 81 points to a durable competitive position sitting on top of that capital efficiency. Together these describe a business that converts capital into profit at a high and consistent rate, with little leverage behind it.
The margin of safety score of 35 comes from comparing the $362.82 share price against a consensus buy price of $159.19, itself built from figures as low as $111.14 and as high as $159.19 depending on method. The model used a 12.9% growth assumption, slightly below the 13.0% actually measured from Visa's history, a deliberate conservative cap rather than a forecast shortfall.
The tension is straightforward: the underlying business scores near the top on quality and durability, at a current price to earnings of 30.9x, while every valuation method here lands well under half of where the stock trades today.
| Price | $368.29 |
| Market cap | $687.6B |
| P/E ratio | 31.3x |
| Return on invested capital | 28.4% |
| Gross margin | 80.4% |
| Debt to equity | 0.66x |
| Free cash flow yield | 3.3% |
| Growth rate used | 12.9% |
| Growth rate measured | 13.0% |
| Exit multiple assumed | 25.7x |
| Company | Moat | Mgmt | Margin of safety |
|---|---|---|---|
| Mastercard Inc. (MA) | 96 | 100 | 48 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Visa Inc. rather than accepting ours.