Visa Inc. (V): A Bull Case Theory

We came across a bullish thesis on Visa Inc. on Monopolistic Investor’s Substack by Antoni Nabzdyk. In this article, we will summarize the bulls’ thesis on V. Visa Inc.'s share was trading at $346.20 as of September 17th. V’s trailing and forward P/E were 33.21 and 26.45, respectively according to Yahoo Finance.

Visa operates one of the largest and most trusted payment networks in the world, serving 4.7 billion cards and over 150 million merchants across 200 countries. Unlike banks, it does not issue credit cards but provides the infrastructure that enables secure, fast, and reliable money transfers. Its scale and brand trust create a durable competitive moat that is difficult for new entrants to replicate. This entrenched position drives exceptional profitability, with gross margins of 97.8% and net margins of 51%, alongside strong free cash flow (FCF) generation that investors value for dividends and buybacks.

Visa’s business model benefits from both consumer and corporate spending, and while volumes may dip during recessions, historical patterns show resilient recovery. High barriers to entry, stringent regulatory standards, and decades of institutional trust reinforce Visa’s monopolistic traits, reflected in a proprietary scoring system that gives the company an 8.3/10, with perfect scores for gross margin and FCF margin, and strong returns on invested capital. Risks include a negative net cash position due to recent acquisitions, reliance on debt, and modestly lagging revenue growth relative to industry peers, but these are balanced by consistent cash generation and a robust balance sheet.

A discounted cash flow analysis suggests Visa’s stock is undervalued, with a fair value range of $396–$463 per share, implying significant upside from current levels. While the author prefers to allocate capital elsewhere in the short term, Visa remains a high-quality long-term investment, supported by network effects, market dominance, and enduring barriers to entry.

Previously we covered a bullish thesis on Visa Inc. (V) by Margin of Sanity in May 2025, which highlighted Visa’s compounding ability, structural dominance, and capital-light duopoly with Mastercard. The company’s stock price has depreciated approximately by 5.18% since our coverage. This is because the thesis didn’t fully play out yet. The thesis still stands as Visa remains a resilient long-term compounder. Antoni Nabzdyk shares a similar view but emphasizes Visa’s monopolistic traits, financial health metrics, and discounted cash flow valuation.

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 potential of V as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.