Mastercard Incorporated

NYSE:MA Stock Report

Market Cap: US$480.3b

Mastercard Valuation

Is MA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MA ($528.03) is trading above our estimate of fair value ($471.67)

Significantly Below Fair Value: MA is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MA?

Key metric: As MA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MA. This is calculated by dividing MA's market cap by their current earnings.
What is MA's PE Ratio?
PE Ratio39.3x
EarningsUS$12.32b
Market CapUS$480.28b

Price to Earnings Ratio vs Peers

How does MA's PE Ratio compare to its peers?

The above table shows the PE ratio for MA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.7x
V Visa
32x9.1%US$617.1b
FI Fiserv
38.3x18.6%US$115.1b
PYPL PayPal Holdings
19.7x6.2%US$87.0b
SQ Block
52.8x27.6%US$54.3b
MA Mastercard
39.3x12.0%US$480.3b

Price-To-Earnings vs Peers: MA is expensive based on its Price-To-Earnings Ratio (39.3x) compared to the peer average (35.7x).

Price to Earnings Ratio vs Industry

How does MA's PE Ratio compare vs other companies in the US Diversified Financial Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FOA Finance of America Companies
1.5x-136.3%US$566.25m
PMIR PMI Group
0.09xn/aUS$518.61k
ACGX Alliance Creative Group
1.3xn/aUS$281.69k
No more companies available in this PE range
MA 39.3xIndustry Avg. 18.0xNo. of Companies12PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MA is expensive based on its Price-To-Earnings Ratio (39.3x) compared to the US Diversified Financial industry average (18x).

Price to Earnings Ratio vs Fair Ratio

What is MA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.3x
Fair PE Ratio27.3x

Price-To-Earnings vs Fair Ratio: MA is expensive based on its Price-To-Earnings Ratio (39.3x) compared to the estimated Fair Price-To-Earnings Ratio (27.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$528.03
US$564.49
+6.9%
7.6%US$654.00US$464.23n/a35
Dec ’25US$532.94
US$559.24
+4.9%
6.7%US$610.00US$464.23n/a35
Nov ’25US$508.08
US$544.17
+7.1%
7.5%US$605.00US$456.00n/a37
Oct ’25US$496.38
US$521.96
+5.2%
5.6%US$591.00US$456.00n/a37
Sep ’25US$483.34
US$517.35
+7.0%
5.4%US$570.00US$451.00n/a36
Aug ’25US$462.41
US$517.39
+11.9%
6.0%US$615.00US$451.00n/a37
Jul ’25US$437.61
US$513.20
+17.3%
5.7%US$615.00US$451.00n/a37
Jun ’25US$447.07
US$514.99
+15.2%
5.5%US$615.00US$451.00n/a37
May ’25US$442.07
US$513.52
+16.2%
6.1%US$615.00US$412.00n/a37
Apr ’25US$478.40
US$508.98
+6.4%
5.3%US$575.00US$412.00n/a36
Mar ’25US$476.63
US$506.17
+6.2%
5.5%US$575.00US$412.00n/a37
Feb ’25US$460.92
US$492.36
+6.8%
7.1%US$536.00US$412.00n/a36
Jan ’25US$426.51
US$456.46
+7.0%
6.5%US$520.00US$410.00n/a35
Dec ’24US$414.36
US$444.47
+7.3%
5.1%US$484.00US$406.00US$532.9434
Nov ’24US$377.82
US$445.90
+18.0%
5.0%US$484.00US$406.00US$508.0835
Oct ’24US$395.91
US$457.88
+15.7%
5.8%US$529.00US$406.00US$496.3833
Sep ’24US$415.57
US$453.91
+9.2%
6.1%US$529.00US$389.00US$483.3434
Aug ’24US$397.07
US$450.61
+13.5%
6.1%US$529.00US$389.00US$462.4134
Jul ’24US$393.30
US$432.59
+10.0%
4.4%US$476.00US$389.00US$437.6134
Jun ’24US$370.88
US$433.25
+16.8%
4.7%US$476.00US$389.00US$447.0733
May ’24US$379.86
US$431.00
+13.5%
4.5%US$472.00US$389.00US$442.0734
Apr ’24US$363.41
US$426.73
+17.4%
4.8%US$472.00US$389.00US$478.4034
Mar ’24US$353.50
US$423.78
+19.9%
5.6%US$472.00US$360.00US$476.6335
Feb ’24US$374.08
US$421.33
+12.6%
6.3%US$472.00US$355.00US$460.9235
Jan ’24US$347.73
US$396.63
+14.1%
7.5%US$472.00US$310.00US$426.5134
Dec ’23US$360.80
US$394.78
+9.4%
7.9%US$472.00US$310.00US$414.3635

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 04:49
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Mastercard Incorporated is covered by 80 analysts. 33 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jim MarroneAccountability Research Corporation
Stephen BiggarArgus Research Company
David KoningBaird