What Mastercard Investors Are Talking About Today.

Now trading at a price of $348.77, Mastercard has moved 0.22% so far today. In contrast, the S&P 500 index moved -1.17%. Read below for a basic value analysis of Mastercard.

Mastercard shares moved 1.55% over the last 52 weeks, with a high of $390.0 and a low of $276.42. During this time, the stock outperformed the S&P 500 index by 12.82%. As of January 2022, the company's 50-day average price is $365.0. Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York. The large-cap Consumer Discretionary company is based in Purchase, NY. Mastercard has returned a 0.65% dividend yield over the last 12 months.

Good EPS Growth with Healthy Leverage Levels:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $16,883 $15,301 $18,884 $22,237
Revenue Growth n/a -9.37% 23.42% 17.76%
Gross Margins 57.24% 53.29% 53.89% 56.75%
Gross Margins Growth n/a -6.9% 1.13% 5.31%
Operating Margins 57.24% 52.81% 53.39% 55.15%
Operating Margins Growth n/a -7.74% 1.1% 3.3%
Earnings Per Share $8.05 $6.49 $8.84 $10.34
EPS Growth n/a -19.38% 36.21% 16.97%
Diluted Shares (MM) 1,008 999 982 959
Free Cash Flow (MM) $7,455 $6,516 $8,649 $10,098
FCF Growth n/a -12.6% 32.73% 16.75%
Capital Expenditures (MM) $728 $708 $814 $1,097
Net Debt / EBITDA n/a 1.82 1.86 1.67

Mastercard Is Overvalued:

Compared to the Consumer Discretionary sector's average of 22.33, Mastercard has a trailing twelve month P/E ratio of 34.57 and, according to its EPS guidance of 14.5, an expected P/E ratio of 24.05. Mastercard's PEG ratio is 1.49 based on its 23.2% annual average growth rate of historical and projected earnings per share. However, we believe that it is more prudent to calculate the PEG ratio using the broader market's 5-year expected EPS growth rate of 13.05%, because the growth rate implied by Mastercard's past and expected EPS is probably not sustainable. This more prudent approach shows a PEG ratio of 2.65, which suggests that the company's shares are actually overvalued.

Mastercard's P/B ratio is 54.04 compared to its sector average of 3.12. The company is likely overvalued in terms of its net asset value. The company's shares are currently trading 920.39% above their fair value as expressed by Benjamin Graham's formula:

√(22.5 * 5-year average EPS * book value per share) = √(22.5 * 7.88 * 6.59) = $34.18

37 analysts are following Mastercard and have set target prices ranging from $360.0 to $472.0 per share. On average, they have given the company a rating of buy. At the current price of $348.77, MA is trading -17.92% away from its average analyst target price of $424.94 per share, implying an analyst consensus of some upside potential for the stock.

The company has no information on the number of shares sold short since 1% of the company's shares are tied to short positions. Institutions own 79% of Mastercard's shares, while the insider ownership rate stands at 11%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.