MA PE Ratio & Valuation,Is MA Overvalued

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 30.62 is considered Fairly compared with the five-year average of 33.08. The fair price of Mastercard Inc (MA) is between 570.52 to 706.67 according to relative valuation methord.

Relative Value

Fair Zone

570.52-706.67

Current Price：586.84

Fair

30.62

22.96

EV/EBITDA

Mastercard Inc. (MA) has a current EV/EBITDA of 22.96. The 5-year average EV/EBITDA is 25.45. The thresholds are as follows: Strongly Undervalued below 19.31, Undervalued between 19.31 and 22.38, Fairly Valued between 28.52 and 22.38, Overvalued between 28.52 and 31.59, and Strongly Overvalued above 31.59. The current Forward EV/EBITDA of 22.96 falls within the Historic Trend Line -Fairly Valued range.

24.35

EV/EBIT

Mastercard Inc. (MA) has a current EV/EBIT of 24.35. The 5-year average EV/EBIT is 27.01. The thresholds are as follows: Strongly Undervalued below 20.14, Undervalued between 20.14 and 23.58, Fairly Valued between 30.44 and 23.58, Overvalued between 30.44 and 33.87, and Strongly Overvalued above 33.87. The current Forward EV/EBIT of 24.35 falls within the Historic Trend Line -Fairly Valued range.

14.10

Mastercard Inc. (MA) has a current PS of 14.10. The 5-year average PS is 15.20. The thresholds are as follows: Strongly Undervalued below 11.90, Undervalued between 11.90 and 13.55, Fairly Valued between 16.85 and 13.55, Overvalued between 16.85 and 18.50, and Strongly Overvalued above 18.50. The current Forward PS of 14.10 falls within the Historic Trend Line -Fairly Valued range.

26.58

P/OCF

Mastercard Inc. (MA) has a current P/OCF of 26.58. The 5-year average P/OCF is 29.69. The thresholds are as follows: Strongly Undervalued below 20.92, Undervalued between 20.92 and 25.31, Fairly Valued between 34.08 and 25.31, Overvalued between 34.08 and 38.47, and Strongly Overvalued above 38.47. The current Forward P/OCF of 26.58 falls within the Historic Trend Line -Fairly Valued range.

29.74

P/FCF

Mastercard Inc. (MA) has a current P/FCF of 29.74. The 5-year average P/FCF is 32.97. The thresholds are as follows: Strongly Undervalued below 24.44, Undervalued between 24.44 and 28.70, Fairly Valued between 37.23 and 28.70, Overvalued between 37.23 and 41.50, and Strongly Overvalued above 41.50. The current Forward P/FCF of 29.74 falls within the Historic Trend Line -Fairly Valued range.

Mastercard Inc (MA) has a current Price-to-Book (P/B) ratio of 64.13. Compared to its 3-year average P/B ratio of 64.41 , the current P/B ratio is approximately -0.43% higher. Relative to its 5-year average P/B ratio of 59.44, the current P/B ratio is about 7.88% higher. Mastercard Inc (MA) has a Forward Free Cash Flow (FCF) yield of approximately 3.36%. Compared to its 3-year average FCF yield of 2.93%, the current FCF yield is approximately 14.92% lower. Relative to its 5-year average FCF yield of 2.76% , the current FCF yield is about 21.87% lower.

64.13

P/B

Median3y

64.41

Median5y

59.44

3.36

FCF Yield

Median3y

2.93

Median5y

2.76

Competitors Valuation Multiple

The average P/S ratio for MA's competitors is 8.24, providing a benchmark for relative valuation. Mastercard Inc Corp (MA) exhibits a P/S ratio of 14.10, which is 71.15% above the industry average. Given its robust revenue growth of 16.73%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of MA increased by 4.41% 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

-15.41%

42.57 → 36.01

P/E Change

4.41%

555.43 → 579.92

Mkt Cap Growth

People Also Watch

Frequently Asked Questions

Is Mastercard Inc (MA) currently overvalued or undervalued?

What is Mastercard Inc (MA) fair value?

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. The fair price of Mastercard Inc (MA) is between 570.52 to 706.67 according to relative valuation methord.

How does MA's valuation metrics compare to the industry average?

What is the current P/B ratio for Mastercard Inc (MA) as of Jan 08 2026?

As of Jan 08 2026, Mastercard Inc (MA) has a P/B ratio of 64.13. This indicates that the market values MA at 64.13 times its book value.

What is the current FCF Yield for Mastercard Inc (MA) as of Jan 08 2026?

As of Jan 08 2026, Mastercard Inc (MA) has a FCF Yield of 3.36%. This means that for every dollar of Mastercard Inc’s market capitalization, the company generates 3.36 cents in free cash flow.

What is the current Forward P/E ratio for Mastercard Inc (MA) as of Jan 08 2026?

As of Jan 08 2026, Mastercard Inc (MA) has a Forward P/E ratio of 30.62. This means the market is willing to pay $30.62 for every dollar of Mastercard Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Mastercard Inc (MA) as of Jan 08 2026?

As of Jan 08 2026, Mastercard Inc (MA) has a Forward P/S ratio of 14.10. This means the market is valuing MA at $14.10 for every dollar of expected revenue over the next 12 months.

MA Valuation