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 30.11 is considered Fairly compared with the five-year average of 33.35. The fair price of Mastercard Inc (MA) is between 536.10 to 668.22 according to relative valuation methord.
Relative Value
Fair Zone
536.10-668.22
Current Price：541.11
Fair
29.49
PE
1Y
3Y
5Y
Trailing
Forward
22.58
EV/EBITDA
Mastercard Inc. (MA) has a current EV/EBITDA of 22.58. The 5-year average EV/EBITDA is 25.63. The thresholds are as follows: Strongly Undervalued below 19.19, Undervalued between 19.19 and 22.41, Fairly Valued between 28.85 and 22.41, Overvalued between 28.85 and 32.07, and Strongly Overvalued above 32.07. The current Forward EV/EBITDA of 22.58 falls within the Historic Trend Line -Fairly Valued range.
23.95
EV/EBIT
Mastercard Inc. (MA) has a current EV/EBIT of 23.95. The 5-year average EV/EBIT is 27.20. The thresholds are as follows: Strongly Undervalued below 20.02, Undervalued between 20.02 and 23.61, Fairly Valued between 30.80 and 23.61, Overvalued between 30.80 and 34.39, and Strongly Overvalued above 34.39. The current Forward EV/EBIT of 23.95 falls within the Historic Trend Line -Fairly Valued range.
13.87
PS
Mastercard Inc. (MA) has a current PS of 13.87. The 5-year average PS is 15.29. The thresholds are as follows: Strongly Undervalued below 11.82, Undervalued between 11.82 and 13.56, Fairly Valued between 17.03 and 13.56, Overvalued between 17.03 and 18.77, and Strongly Overvalued above 18.77. The current Forward PS of 13.87 falls within the Historic Trend Line -Fairly Valued range.
26.14
P/OCF
Mastercard Inc. (MA) has a current P/OCF of 26.14. The 5-year average P/OCF is 29.89. The thresholds are as follows: Strongly Undervalued below 20.91, Undervalued between 20.91 and 25.40, Fairly Valued between 34.38 and 25.40, Overvalued between 34.38 and 38.86, and Strongly Overvalued above 38.86. The current Forward P/OCF of 26.14 falls within the Historic Trend Line -Fairly Valued range.
29.24
P/FCF
Mastercard Inc. (MA) has a current P/FCF of 29.24. The 5-year average P/FCF is 33.20. The thresholds are as follows: Strongly Undervalued below 24.32, Undervalued between 24.32 and 28.76, Fairly Valued between 37.64 and 28.76, Overvalued between 37.64 and 42.08, and Strongly Overvalued above 42.08. The current Forward P/FCF of 29.24 falls within the Historic Trend Line -Fairly Valued range.
Mastercard Inc (MA) has a current Price-to-Book (P/B) ratio of 63.06. Compared to its 3-year average P/B ratio of 64.14 , the current P/B ratio is approximately -1.68% higher. Relative to its 5-year average P/B ratio of 59.37, the current P/B ratio is about 6.21% higher. Mastercard Inc (MA) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.92%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.74% , the current FCF yield is about -100.00% lower.
61.76
P/B
Median3y
64.14
Median5y
59.37
3.42
FCF Yield
Median3y
2.92
Median5y
2.74
Competitors Valuation Multiple
The average P/S ratio for MA's competitors is , providing a benchmark for relative valuation. Mastercard Inc Corp (MA) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 16.73%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MA increased by 2.99% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 7.37B to 8.60B.
The secondary factor is the Margin Expansion, contributed 3.09%to the performance.
Overall, the performance of MA in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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FAQ
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