MA Valuation

Mastercard Inc

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568.280

+0.06(0.011%)1D

Overview
Forecast
Valuation
Earnings

MA Relative Valuation

MA's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MA is overvalued; if below, it's undervalued.

Historical Valuation

Mastercard Inc (MA) is now in the Fair zone, suggesting that its current forward PE ratio of 34.53 is considered Fairly compared with the five-year average of 34.32. The fair price of Mastercard Inc (MA) is between 474.24 to 616.73 according to relative valuation methord.

Relative Value

Fair Zone

474.24-616.73

Current Price：568.28

Fair

34.53

Trailing

Forward

25.97

EV/EBITDA

Mastercard Inc. (MA) has a current EV/EBITDA of 25.97. The 5-year average EV/EBITDA is 26.34. The thresholds are as follows: Strongly Undervalued below 18.80, Undervalued between 18.80 and 22.57, Fairly Valued between 30.11 and 22.57, Overvalued between 30.11 and 33.88, and Strongly Overvalued above 33.88. The current Forward EV/EBITDA of 25.97 falls within the Historic Trend Line -Fairly Valued range.

27.57

EV/EBIT

Mastercard Inc. (MA) has a current EV/EBIT of 27.57. The 5-year average EV/EBIT is 27.98. The thresholds are as follows: Strongly Undervalued below 19.64, Undervalued between 19.64 and 23.81, Fairly Valued between 32.16 and 23.81, Overvalued between 32.16 and 36.33, and Strongly Overvalued above 36.33. The current Forward EV/EBIT of 27.57 falls within the Historic Trend Line -Fairly Valued range.

15.70

Mastercard Inc. (MA) has a current PS of 15.70. The 5-year average PS is 15.66. The thresholds are as follows: Strongly Undervalued below 11.57, Undervalued between 11.57 and 13.62, Fairly Valued between 17.70 and 13.62, Overvalued between 17.70 and 19.75, and Strongly Overvalued above 19.75. The current Forward PS of 15.70 falls within the Historic Trend Line -Fairly Valued range.

29.44

P/OCF

Mastercard Inc. (MA) has a current P/OCF of 29.44. The 5-year average P/OCF is 30.68. The thresholds are as follows: Strongly Undervalued below 21.05, Undervalued between 21.05 and 25.87, Fairly Valued between 35.50 and 25.87, Overvalued between 35.50 and 40.32, and Strongly Overvalued above 40.32. The current Forward P/OCF of 29.44 falls within the Historic Trend Line -Fairly Valued range.

35.26

P/FCF

Mastercard Inc. (MA) has a current P/FCF of 35.26. The 5-year average P/FCF is 34.15. The thresholds are as follows: Strongly Undervalued below 23.78, Undervalued between 23.78 and 28.97, Fairly Valued between 39.34 and 28.97, Overvalued between 39.34 and 44.52, and Strongly Overvalued above 44.52. The current Forward P/FCF of 35.26 falls within the Historic Trend Line -Fairly Valued range.

Mastercard Inc (MA) has a current Price-to-Book (P/B) ratio of 77.52. Compared to its 3-year average P/B ratio of 62.54 , the current P/B ratio is approximately 23.96% higher. Relative to its 5-year average P/B ratio of 58.70, the current P/B ratio is about 32.06% higher. Mastercard Inc (MA) has a Forward Free Cash Flow (FCF) yield of approximately 2.91%. Compared to its 3-year average FCF yield of 2.92%, the current FCF yield is approximately -0.25% lower. Relative to its 5-year average FCF yield of 2.67% , the current FCF yield is about 8.92% lower.

77.52

P/B

Median3y

62.54

Median5y

58.70

2.91

FCF Yield

Median3y

2.92

Median5y

2.67

Competitors Valuation Multiple

The average P/S ratio for MA's competitors is 8.79, providing a benchmark for relative valuation. Mastercard Inc Corp (MA) exhibits a P/S ratio of 15.70, which is 78.55% above the industry average. Given its robust revenue growth of 14.21%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MA increased by 22.71% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 6.35B to 7.25B.

The secondary factor is the P/E Change, contributed 13.12%to the performance.

Overall, the performance of MA in the past 1 year is driven by Revenue Growth. Which is more sustainable.

14.21%

6.35B → 7.25B

Revenue Growth

-4.62%

47.43 → 45.24

Margin Expansion

13.12%

35.22 → 39.84

P/E Change

22.71%