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Mastercard

NYSE:MA
Snowflake Description

Reasonable growth potential with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MA
NYSE
$200B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The last earnings update was 57 days ago. More info.


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3 Month History
MA
Industry
5yr Volatility vs Market

MA Value

 Is Mastercard undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mastercard to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

  • The current share price of Mastercard is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mastercard's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mastercard's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Mastercard is overvalued based on earnings compared to the US IT industry average.
  • Mastercard is overvalued based on earnings compared to the US market.
Price based on expected Growth
Does Mastercard's expected growth come at a high price?
  • Mastercard is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Mastercard's assets?
  • Mastercard is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Mastercard's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Mastercard has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (59.28%).

    Full details on the Value part of the Simply Wall St company analysis model.
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Discounted cash flow (2 Stage Free Cash Flow to Equity)

The calculations below outline how an intrinsic value for Mastercard is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.

See our documentation to learn about this calculation.

5 year cash flow forecast

Present value of next 5 years cash flows:
$32,275

Terminal Value

Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)

Terminal Value = $10,663 × (1 + 2.47%) ÷ (9.34% – 2.47%)

Terminal value based on the Perpetuity Method where growth (g) = 2.47%:
$159,018

Present value of terminal value:
$101,748

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
$134,023 = $32,275 + $101,748

Value = Total value / Shares Outstanding ($134,023 / 1,044)

Discount to Share Price

Value per share (USD): $128.38

Current discount (share price of $191.17): -48.91%



Estimate of Discount Rate

The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.

Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)

Discount rate = 9.34% = 2.47% + (0.913 * 7.53%)



Estimate of Bottom Up Beta

The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($199,575,943,143).

Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))

0.913 = 0.885 (1 + (1- 2.7%) (3.24%))

Levered Beta used in calculation = 0.913



Assumptions
  1. The risk free rate of 2.47% is from the 10 year government bond rate in USD.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (7.53%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

MA Future Performance

 How is Mastercard expected to perform in the next 1 to 3 years based on estimates from 34 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mastercard expected to grow at an attractive rate?
  • Mastercard's earnings growth is expected to exceed the low risk savings rate of 4.5%.
Growth vs Market Checks
  • Mastercard's earnings growth is expected to exceed the US market average.
  • Mastercard's revenue growth is expected to exceed the US market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Mastercard's earnings are expected to grow by 16.4% yearly, however this is not considered high growth (20% yearly).
  • Mastercard's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mastercard is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
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Future performance checks
We assess Mastercard's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the US market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the US market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mastercard has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MA Past Performance

  How has Mastercard performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mastercard's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mastercard's year on year earnings growth rate has been positive over the past 5 years.
  • Mastercard's 1-year earnings growth is less than its 5-year average (3.5% vs 11.1%)
  • Mastercard's earnings growth has not matched the US IT industry average in the past year (3.5% vs 15.3%).
Earnings and Revenue History
Mastercard's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mastercard made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Mastercard used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Mastercard's use of capital has not improved over the past 3 years (Return on Capital Employed).
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Past performance checks
We assess Mastercard's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mastercard has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MA Health

 How is Mastercard's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mastercard's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mastercard is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mastercard's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Mastercard's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Mastercard's level of debt (111.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 111.5% today).
  • Debt is well covered by operating cash flow (90.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 72.3x coverage).
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Financial health checks
We assess Mastercard's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mastercard has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MA Dividends

 What is Mastercard's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.52%
Current annual income from Mastercard dividends. Estimated to be 0.59% next year.
If you bought $2,000 of Mastercard shares you are expected to receive $10 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mastercard's dividend is below the low risk savings rate (1.42%).
  • Mastercard's dividend is below the markets top dividend payers (3.95%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Mastercard's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (4.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by net profit (6.8x coverage).
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Income/ dividend checks
We assess Mastercard's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Mastercard afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Mastercard has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MA Management

 What is the CEO of Mastercard's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ajay Banga, image provided by Google.
Ajay Banga
COMPENSATION $18,684,470
AGE 57
TENURE AS CEO 7.8 years
CEO Bio

Mr. Ajaypal S. Banga, also known as Ajay, has been the Chief Executive Officer and President of Mastercard Incorporated since July 1, 2010 and August 31, 2009 respectively. Mr. Banga has been the Chief Executive Officer and President of Mondex International Ltd. since July 1, 2010 and August 31, 2009, respectively. He serves as the Chief Executive Officer and President of MasterCard International Incorporated. He served as the Chief Operating Officer of Mastercard Incorporated from August 31, 2009 to July 1, 2010. He served as the Chief Operating Officer of Mondex International Ltd. from August 31, 2009 to July 1, 2010. He served as the Chief Operating Officer of MasterCard International Incorporated. He joined MasterCard in 2009. Mr. Banga served as the Chief Executive Officer of Asia Pacific Region at Citibank Singapore Limited, a subsidiary of Citigroup Inc. He served as the Chairman of the Board and Chief Executive Officer of Global Consumer Group, International at Citigroup Finance Canada Inc. from August 2005 to 2008 and Citigroup Inc. since August 2005. He spent 13 years at Citibank, where he served as Chief Executive Officer of Citi Asia Pacific and was responsible for all its business lines in the region, including institutional banking, alternative investments, wealth management, consumer banking and credit cards. Mr. Banga served as the Chief Executive Officer of Asia Pacific Region at Citigroup Inc. until June 2009 and Head of Alternative Investments for Asia Pacific Region since August 2008. His responsibilities included all credit card, retail banking and consumer finance operations in Asia, Japan, Europe/Middle East/Africa, Latin America and Mexico at Citigroup. He served as the Head of International Consumer Business, New York at Citigroup Inc. until August 2008. Mr. Banga served as an Executive Vice President of Global Consumer Group at Citigroup and President of Retail Banking North America since 2002. Since 2002, he had additional responsibility for the servicing and technology of all the real estate businesses in the consumer bank. He was responsible for branch and commercial banking, commercial real estate, commercial financing and leasing, mortgages, student loans and the Primerica Financial Services distribution channel. He served as the Business Head for CitiFinancial and the US Consumer Assets Division from 2000 to 2002 and as Division Executive for consumer bank in Central/Eastern Europe, Middle East, Africa and India from 1998 to 2000. Mr. Banga began his business career as a Management Trainee at Nestlé, India, where for 13 years he worked on assignments spanning sales, marketing and general management. He spent the next 13 years in a variety of assignments spanning sales, marketing and general management. He spent two years at Pepsico, where he was instrumental in launching its fast food franchises in India as the economy liberalized. He joined Citifinancial in 1996 as Head of Marketing and Sales in India and as Head of its Sales, Marketing and Business Development for Europe, Middle East and Africa, based in Brussels. He is Director of the American Red Cross. He is Co-founder of Cyber Readiness Institute. He served as the Chairman and Chief Executive Officer of Foreign Consumer Business of Citigroup Inc. He was Business Sponsor of Citi's African heritage network, NYC. From 2005 to mid-2009, he spearheaded Citi's strategy in the microfinance sector around the world. He served as Chairman of U.S.– India Business Council and serves as its Member. Mr. Banga served as Vice Chairman of the New York Hall of Science. He has been an Independent Director of Mastercard Incorporated since April 12, 2010. He serves as a Director of MasterCard International Incorporated and New York City Ballet, Inc. He serves as a Trustee of the National Urban League, Enterprise Community Partners and the Asia Society. He serves as a Director of The Partnership for New York City, Inc and serves as its Co-Chair and a Director of Mondex International Limited. Mr. Banga is a member of the Board of Overseers of the Weill Cornell Medical College. He has served on the board of trustees of the Asia Society, the New York Hall of Science and among others. He served as a Director of The Dow Chemical Company since February 19, 2013 to August 31, 2017. He served as a Director of Mondelez International, Inc. from January 2007 to May 23, 2012. He served as a Director for the Council for Economic Education. He served as a Director of Foreign Consumer Business of Citigroup Inc. He served as a Director of Kraft Foods Inc. from January 2007 to May 23, 2012. He is a member of the Council on Foreign Relations, the International Advisory Board of the Moscow School of Management (Skolkovo), The Economic Club of New York and The Financial Services Roundtable. He is a Member of President’s Advisory Committee for Trade Policy and Negotiations (U.S.). He was a member of President’s Commission on Enhancing National Cybersecurity (U.S.). He is a Member, materials advisory committee of the Board of Directors, DowDuPont, Inc. He is Vice Chairman of The Business Council. He is Founding Trustee of U.S.-India Strategic Partnership Forum. He has a keen interest in social development issues. He was named by The Economic Times of India as the fourth "Most Powerful Indian" in the world. He is a fellow of the Foreign Policy Association and was awarded the Foreign Policy Association Medal in 2012. Mr. Banga graduated with a BA in Economics Honors from Delhi University and received an MBA from the Indian Institute of Management in Ahmedabad, India.

CEO Compensation
  • Ajay's compensation has been consistent with company performance over the past year.
  • Ajay's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Mastercard management team in years:

2.1
Average Tenure
51
Average Age
  • The tenure for the Mastercard management team is about average.
Management Team

Ajay Banga

TITLE
President
COMPENSATION
$19M
AGE
57
TENURE
7.8 yrs

Martina T. Hund-Mejean

TITLE
Chief Financial Officer
COMPENSATION
$7M
AGE
56
TENURE
10.5 yrs

Ann Cairns

TITLE
President of International
COMPENSATION
$5M
AGE
60

Craig Vosburg

TITLE
President of North America
COMPENSATION
$4M
AGE
50
TENURE
2.3 yrs

Ed McLaughlin

TITLE
President of Operations & Technology
AGE
51
TENURE
1 yrs

Sandra Arkell

TITLE
Corporate Controller & Principal Accounting Officer
AGE
49
TENURE
1.1 yrs

Warren Kneeshaw

TITLE
Executive Vice President of Investor Relations
TENURE
1.5 yrs

Tim Murphy

TITLE
Chief Franchise Officer & General Counsel
AGE
49
TENURE
4.1 yrs

Raja Rajamannar

TITLE
Chief Marketing & Communications Officer and President of Healthcare

Michael Fraccaro

TITLE
Chief Human Resources Officer
AGE
51
TENURE
1.8 yrs
Board of Directors Tenure

Average tenure and age of the Mastercard board of directors in years:

10.3
Average Tenure
61
Average Age
  • The average tenure for the Mastercard board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Rick Haythornthwaite

TITLE
Chairman of the Board
COMPENSATION
$480K
AGE
60
TENURE
11.7 yrs

Ajay Banga

TITLE
President
COMPENSATION
$19M
AGE
57
TENURE
8.1 yrs

Steve Freiberg

TITLE
Director
COMPENSATION
$335K
AGE
60
TENURE
11.7 yrs

Nancy Karch

TITLE
Director
COMPENSATION
$320K
AGE
69
TENURE
11.3 yrs

José Reyes Lagunes

TITLE
Director
COMPENSATION
$305K
AGE
65
TENURE
10.3 yrs

Silvio Barzi

TITLE
Independent Director
COMPENSATION
$315K
AGE
69
TENURE
10.3 yrs

David Carlucci

TITLE
Director
COMPENSATION
$325K
AGE
62
TENURE
12 yrs

Jack Tai

TITLE
Director
COMPENSATION
$330K
AGE
67
TENURE
9.7 yrs

Rima Qureshi

TITLE
Director
COMPENSATION
$310K
AGE
52
TENURE
7.1 yrs

Julius Genachowski

TITLE
Director
COMPENSATION
$299K
AGE
54
TENURE
3.9 yrs
Recent Insider Trading
  • Mastercard insiders have only sold shares in the past 3 months.
Who owns this company?
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Management checks
We assess Mastercard's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mastercard has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MA News

External News
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Simply Wall St News

Should You Expect Mastercard Incorporated (NYSE:MA) To Continue Delivering An ROE Of 74.56%?

Check out our latest analysis for Mastercard Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Mastercard’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Mastercard’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:MA Last Perf May 11th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Does Mastercard Incorporated's (NYSE:MA) Stock Price Account For Its Growth?

Mastercard is trading at price-to-earnings (PE) ratio of 49.75x, this tells us the stock is overvalued compared to the US market average ratio of 18.68x , and overvalued based on current earnings compared to the it industry average of 25.38x. … NYSE:MA PE PEG Gauge Mar 18th 18 We understand MA seems to be overvalued based on its current earnings, compared to its industry peers. … This means that, when we account for Mastercard's growth, the stock can be viewed as overvalued , based on the fundamentals.

Simply Wall St -

How Do Analysts See Mastercard Incorporated (NYSE:MA) Performing In The Years Ahead?

Below is a brief commentary on my key takeaways on how market analysts view Mastercard's earnings growth trajectory over the next couple of years and whether the future looks brighter. … View our latest analysis for Mastercard Analysts' expectations for the upcoming year seems optimistic, with earnings growing by a significant 60.62%. … NYSE:MA Future Profit Mar 9th 18 Although it is useful to be aware of the rate of growth year by year relative to today’s level, it may be more insightful estimating the rate at which the earnings are growing on average every year.

Simply Wall St -

Does Mastercard Incorporated's (NYSE:MA) PE Ratio Signal A Selling Opportunity?

Mastercard Incorporated (NYSE:MA) trades with a trailing P/E of 47.9x, which is higher than the industry average of 24.8x. … Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MA Price per share = $175.93 Earnings per share = $3.669 ∴ Price-Earnings Ratio = $175.93 ÷ $3.669 = 47.9x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … Since MA's P/E of 47.9x is higher than its industry peers (24.8x), it means that investors are paying more than they should for each dollar of MA's earnings.

Simply Wall St -

Will Mastercard Incorporated's (NYSE:MA) Earnings Grow In Next 12 Months?

Based on Mastercard Incorporated's (NYSE:MA) earnings update in December 2017, analyst consensus outlook appear vastly optimistic, with profits predicted to ramp up by an impressive 60.67% next year, relative to the past 5-year average growth rate of 11.69%. … To get an idea of the overall earnings growth trend for MA, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line. … NYSE:MA Future Profit Feb 13th 18 From the current net income level of $3,915.0M and the final forecast of $7,924.9M by 2021, the annual rate of growth for MA’s earnings is 24.42%.

Simply Wall St -

Mastercard Incorporated (NYSE:MA) Delivered A Better ROE Than The Industry, Here’s Why

Check out our latest analysis for Mastercard What you must know about ROE Return on Equity (ROE) is a measure of Mastercard’s profit relative to its shareholders’ equity. … ROE can be dissected into three distinct ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:MA Last Perf Feb 1st 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Is It The Right Time To Buy Mastercard Incorporated (NYSE:MA)?

This means that the opportunity to buy Mastercard at a good price has disappeared! … Mastercard’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe Mastercard should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.

Simply Wall St -

What Do Analysts Think About Mastercard Incorporated's (NYSE:MA) Profit Growth?

Margin Calculation for MA Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 4.62 Billion ÷ 11.94 Billion = 38.70% Mastercard's margin has expanded in the past five years, as a result of a 12.42% average growth in net income surpassing 9.79% in average revenue growth, indicating that that the previous revenue growth has been acompanied by a growing portion translated in to earnings. … Based on future expectations, MA's profit margin will continue to expand, with 11.24% in expected annual revenue growth and a forecasted 14.48% in annual net income growth. … This suggests future earnings growth is driven further by enhanced cost efficiency alongside revenue increases, which is enlarging the incremental amount of net income that is retained from the forecasted revenue growth.

Simply Wall St -

An Intrinsic Value Calculation For Mastercard Incorporated (NYSE:MA) Shows Investors Are Overpaying

The sum of these cash flows is then discounted to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $5,611.95 $6,423.57 $7,083.00 $7,925.00 $8,860.00 Source Analyst x13 Analyst x7 Analyst x1 Analyst x1 Analyst x1 Present Value Discounted @ 9.1% $5,144.04 $5,397.06 $5,454.92 $5,594.50 $5,733.05 Present Value of 5-year Cash Flow (PVCF)= $27,324 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … NYSE:MA Intrinsic Value Jan 4th 18 The assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

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Are Mastercard Incorporated's (NYSE:MA) Interest Costs Too High?

See our latest analysis for Mastercard Is MA’s level of debt at an acceptable level? … NYSE:MA Historical Debt Jan 2nd 18 A simple way to determine whether the company has put debt into good use is to look at its operating cash flow against its debt obligation. … MA’s high cash coverage means that, although its debt levels are high, investors shouldn’t panic since the company is able to utilise its borrowings efficiently in order to generate cash flow.

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MA Company Info

Map
Description

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company also offers value-added services, such as safety and security products, loyalty and reward programs, information and consulting services, issuer and acquirer processing solutions, and payment and mobile gateways. In addition, it provides various integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations; programs that enable issuers to provide consumers with cards to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. Further, the company provides products and services to prevent, detect, and respond to fraud and cyber-attacks, and ensure the safety of transactions. It offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. Mastercard Incorporated has a strategic partnership with Bahrain Commercial Facilities Company BSC. The company was founded in 1966 and is headquartered in Purchase, New York.

Details
Name: Mastercard Incorporated
MA
Exchange: NYSE
Founded: 1966
$199,575,943,143
1,043,971,037
Website: http://www.mastercard.com
Address: Mastercard Incorporated
2000 Purchase Street,
Purchase,
New York, 10577,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MA Class A Common Stock New York Stock Exchange US USD 25. May 2006
DB M4I Class A Common Stock Deutsche Boerse AG DE EUR 25. May 2006
XTRA M4I Class A Common Stock XETRA Trading Platform DE EUR 25. May 2006
LSE 0R2Z Class A Common Stock London Stock Exchange GB USD 25. May 2006
SWX MA Class A Common Stock SIX Swiss Exchange CH CHF 25. May 2006
WBAG MAST Class A Common Stock Wiener Boerse AG AT EUR 25. May 2006
BMV MA * Class A Common Stock Bolsa Mexicana de Valores MX MXN 25. May 2006
BOVESPA MSCD34 BDR EACH REPR 1 COM CL 'A' USD0.0001 Bolsa de Valores de Sao Paulo BR BRL 02. Feb 2012
Number of employees
Current staff
Staff numbers
13,400
Mastercard employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/05/27 10:01
End of day share price update: 2018/05/25 00:00
Last estimates confirmation: 2018/05/18
Last earnings update: 2018/03/31
Last annual earnings update: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.