Visa (V) trades at $360.57 per share on a $651.9B market cap and 29.3x trailing earnings. Under a conservative 3-year scenario, the math points to roughly 42% of upside. Revenue compounding does most of the work in our scenario. Here is the picture the math sits on top of:

Where V Stands Today

• Valuation: P/E of 29.3 versus a 3-year average of 29.8 and a 3-year high of 33.9.
• Revenue: Revenue grew 14.4% over the last twelve months, with a 3-year CAGR of 11.6%.
• Net Margin: Running at 52% LTM, against a 3-year average of 53% and a 3-year peak of 55%.

The Three Levers Of Upside

Today’s price is paying for some combination of these three. Under our conservative calibration:

…