Don't Judge Mastercard on Technicals Alone - Check Its Fundamentals!

By Chris Stiles • Wednesday, November 01 10:21 • Permanent Link

Large-cap Consumer Discretionary company Mastercard has moved 0.6% so far today on a volume of 349,627, compared to its average of 2,348,267. In contrast, the S&P 500 index moved 1.0%.

Mastercard trades -11.52% away from its average analyst target price of $427.96 per share. The 37 analysts following the stock have set target prices ranging from $377.24 to $467.78, and on average have given Mastercard a rating of buy.

Anyone interested in buying MA should be aware of the facts below:

Mastercard's current price is 897.2% above its Graham number of $37.97, which implies that at its current valuation it does not offer a margin of safety
Mastercard has moved 19.0% over the last year, and the S&P 500 logged a change of 13.0%
Based on its trailing earnings per share of 11.48, Mastercard has a trailing 12 month Price to Earnings (P/E) ratio of 33.0 while the S&P 500 average is 15.97
MA has a forward P/E ratio of 27.7 based on its forward 12 month price to earnings (EPS) of $13.65 per share
The company has a price to earnings growth (PEG) ratio of 2.1 — a number near or below 1 signifying that Mastercard is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 56.34 compared to its sector average of 3.12
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.
Based in Purchase, the company has 29,900 full time employees and a market cap of $355.09 Billion. Mastercard currently returns an annual dividend yield of 0.6%.

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.