MA Valuation

Mastercard Inc

Add to Watchlist

Advanced Chart

553.280

-0.03(-0.005%)1D

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 30.09 is considered Fairly compared with the five-year average of 33.61. The fair price of Mastercard Inc (MA) is between 546.70 to 687.13 according to relative valuation methord.

Relative Value

Fair Zone

546.70-687.13

Current Price：552.67

Fair

30.09

Trailing

Forward

22.52

EV/EBITDA

Mastercard Inc. (MA) has a current EV/EBITDA of 22.52. The 5-year average EV/EBITDA is 25.85. The thresholds are as follows: Strongly Undervalued below 19.17, Undervalued between 19.17 and 22.51, Fairly Valued between 29.19 and 22.51, Overvalued between 29.19 and 32.53, and Strongly Overvalued above 32.53. The current Forward EV/EBITDA of 22.52 falls within the Historic Trend Line -Fairly Valued range.

23.88

EV/EBIT

Mastercard Inc. (MA) has a current EV/EBIT of 23.88. The 5-year average EV/EBIT is 27.44. The thresholds are as follows: Strongly Undervalued below 19.99, Undervalued between 19.99 and 23.72, Fairly Valued between 31.16 and 23.72, Overvalued between 31.16 and 34.89, and Strongly Overvalued above 34.89. The current Forward EV/EBIT of 23.88 falls within the Historic Trend Line -Fairly Valued range.

553.31

Mastercard Inc. (MA) has a current PS of 553.31. The 5-year average PS is 18.47. The thresholds are as follows: Strongly Undervalued below -62.52, Undervalued between -62.52 and -22.02, Fairly Valued between 58.96 and -22.02, Overvalued between 58.96 and 99.45, and Strongly Overvalued above 99.45. The current Forward PS of 553.31 falls within the Strongly Overvalued range.

26.77

P/OCF

Mastercard Inc. (MA) has a current P/OCF of 26.77. The 5-year average P/OCF is 30.11. The thresholds are as follows: Strongly Undervalued below 20.99, Undervalued between 20.99 and 25.55, Fairly Valued between 34.67 and 25.55, Overvalued between 34.67 and 39.24, and Strongly Overvalued above 39.24. The current Forward P/OCF of 26.77 falls within the Historic Trend Line -Fairly Valued range.

29.13

P/FCF

Mastercard Inc. (MA) has a current P/FCF of 29.13. The 5-year average P/FCF is 33.48. The thresholds are as follows: Strongly Undervalued below 24.33, Undervalued between 24.33 and 28.91, Fairly Valued between 38.05 and 28.91, Overvalued between 38.05 and 42.62, and Strongly Overvalued above 42.62. The current Forward P/FCF of 29.13 falls within the Historic Trend Line -Fairly Valued range.

Mastercard Inc (MA) has a current Price-to-Book (P/B) ratio of 63.01. Compared to its 3-year average P/B ratio of 63.89 , the current P/B ratio is approximately -1.38% higher. Relative to its 5-year average P/B ratio of 59.31, the current P/B ratio is about 6.24% higher. Mastercard Inc (MA) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 2.91%, the current FCF yield is approximately -98.83% lower. Relative to its 5-year average FCF yield of 2.72% , the current FCF yield is about -98.75% lower.

63.01

P/B

Median3y

63.89

Median5y

59.31

0.03

FCF Yield

Median3y

2.91

Median5y

2.72

Competitors Valuation Multiple

The average P/S ratio for MA's competitors is 358.33, providing a benchmark for relative valuation. Mastercard Inc Corp (MA) exhibits a P/S ratio of 553.31, which is 54.41% 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

SoFi Technologies Inc

30.07

39.55%

32.72B

Performance Decomposition

Market capitalization of MA increased by 3.82% 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.

16.73%

7.37B → 8.60B

Revenue Growth

3.09%

44.28 → 45.65

Margin Expansion

-16.00%

42.12 → 35.38

P/E Change

3.82%