A Business at a Glance
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Mastercard Inc
MA
$489.0B
Mkt Cap
$539.66
+1.77%
Mastercard Inc (MA) has a current P/E ratio of 32.7, compared to its historical median P/E of 36.0. The stock is currently considered Fair based on its historical valuation range.
Mastercard Inc (MA) has a 5-year average return on invested capital (ROIC) of 78.7%. This indicates strong capital allocation and a potential competitive advantage.
Mastercard Inc (MA) has a market capitalization of $481.9B. It is classified as a mega-cap stock.
Yes, Mastercard Inc (MA) pays a dividend with a trailing twelve-month yield of 0.59%. The company also returns capital through share buybacks, with a buyback yield of 2.74%.
Based on historical P/E analysis, Mastercard Inc (MA) appears fair. The current P/E of 32.7 is 9% below its historical median of 36.0. The estimated fair value CAGR (P/E method) is 15.2%.
Mastercard Inc (MA) operates in the Services-Business Services, Nec industry, within the Industrials sector.
Mastercard Inc (MA) reported annual revenue of $32.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Mastercard is a technology company operating a global payments network that connects consumers, financial institutions, merchants, governments, and other organizations to enable electronic payments across more than 150 currencies and 220+ countries and territories. The company operates a four-party network model where it switches (authorizes, clears, and settles) transactions between account holders, issuers, merchants, and acquirers, generating revenue primarily through interchange fees, assessment fees, and service charges rather than from interest rates or credit extension. The business is organized around three strategic priorities: consumer payments (including cards, real-time payments, and account-based transactions), commercial and new payment flows (point-of-sale purchases, invoiced payments, and disbursements through Mastercard Move), and services and other solutions (security, consumer acquisition, business insights, digital authentication, processing, and gateway services). Mastercard's competitive moat derives from its proprietary global network, trusted brand portfolio (Mastercard, Maestro, Cirrus), franchise model that balances value across ecosystem participants, and integrated data and AI capabilities that enable differentiated services. The company serves a diverse customer base including financial institutions, merchants, fintechs, and governments, with revenue streams spanning payment network transactions, value-added services, and data-driven solutions that are fundamentally interdependent and reinforce one another.
【Healthy spending, selective pricing】 Management expects consumer and business spending to remain healthy in 2026, with net revenue growth projected at the high end of low double-digits on a currency-neutral basis, though the first half will face tougher year-over-year comparisons due to elevated foreign exchange volatility in the prior year. Operating expenses are expected to grow at the low end of low double-digits, with the company maintaining disciplined cost management while investing in strategic priorities. Value-added services and solutions continue to be a significant growth driver with broad-based momentum across regions and product groups, and management has embedded planned pricing initiatives into full-year guidance while maintaining flexibility to deploy new capabilities and pricing levers throughout the year. The company is managing near-term headwinds including the Capital One debit migration impact and geopolitical effects on cross-border travel, while positioning for progressive recovery in the second half of 2026 and maintaining conviction in the underlying fundamentals of its cross-border value proposition.
| Metric | Target | Period |
|---|---|---|
| Net revenue growth (currency-neutral basis, excluding inorganic activity) | high end of low double-digits range | FY2026 |
| Operating expense growth (currency-neutral basis, excluding inorganic activity) | low double digits range | FY2026 |
| Non-GAAP tax rate | 20%-21% | FY2026 |
Net revenue growth (currency-neutral basis, excluding inorganic activity) (FY2026): “As it relates to our expectations for the full year 2026, net revenue growth remains at the high end of a low double digits range on a currency-neutral basis, excluding inorganic activity.”
Operating expense growth (currency-neutral basis, excluding inorganic activity) (FY2026): “From an operating expense standpoint, we expect growth to be at the low double digits range versus a year ago on a currency-neutral basis, excluding inorganic activity.”
Non-GAAP tax rate (FY2026): “Finally, we expect a non-GAAP tax rate in the range of 20%-21% for both Q2 and the full year.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 33.9B | 32.8B | 28.2B | 25.1B | 22.2B | 29.8B |
| Net Income | 15.6B | 15.0B | 12.9B | 11.2B | 9.9B | 8.7B |
| EPS | $17.21 | $16.52 | $13.89 | $11.83 | $10.22 | $8.76 |
| Free Cash Flow | 17.8B | 17.2B | 14.3B | 11.6B | 10.8B | 9.1B |
| ROIC | 90.5% | 93.2% | 86.3% | 83.5% | 76.1% | 54.6% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 2.82 | 2.56 | 2.93 | 2.37 | 2.35 | 2.01 |
| Dividends/Share | $3.18 | $3.15 | $2.74 | $2.37 | $2.04 | $1.76 |
| Operating Income | 19.7B | 18.9B | 15.6B | 14.0B | 12.3B | 10.1B |
| Operating Margin | 57.9% | 57.6% | 55.3% | 55.8% | 55.2% | 33.8% |
| ROE | 231.7% | 210.5% | 191.9% | 169.3% | 145.9% | 126.8% |
| Shares Outstanding | 893M | 906M | 927M | 946M | 972M | 992M |
Mastercard Inc passes 7 of 9 quality checks, indicating strong fundamentals.
Mastercard Inc trades at 32.7x trailing earnings, compared to its 15-year median P/E of 36.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 28.5x vs a median of 32.9x. The company's 5-year average ROIC is 78.7%. Total shareholder yield (dividends + buybacks) is 3.3%. At current prices, the estimated annualized return to fair value is +17.0%.
Mastercard Inc (MA) has a net profit margin of 45.6%. This is a strong margin indicating high profitability.
Mastercard Inc (MA) generated $17.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Mastercard Inc (MA) has a debt-to-equity ratio of 2.56. This indicates higher leverage, which may increase financial risk.
Mastercard Inc (MA) reported earnings per share (EPS) of $16.52 in its most recent fiscal year.
Mastercard Inc (MA) has a return on equity (ROE) of 210.5%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 19 years of financial data for Mastercard Inc (MA), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Mastercard Inc (MA) has a book value per share of $8.54, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects consumer and business spending to remain healthy in 2026, with net revenue growth projected at the high end of low double-digits on a currency-neutral basis, though the first half will face tougher year-over-year comparisons due to elevated foreign exchange volatility in the prior year. Operating expenses are expected to grow at the low end of low double-digits, with the company maintaining disciplined cost management while investing in strategic priorities. Value-added services and solutions continue to be a significant growth driver with broad-based momentum across regions and product groups, and management has embedded planned pricing initiatives into full-year guidance while maintaining flexibility to deploy new capabilities and pricing levers throughout the year. The company is managing near-term headwinds including the Capital One debit migration impact and geopolitical effects on cross-border travel, while positioning for progressive recovery in the second half of 2026 and maintaining conviction in the underlying fundamentals of its cross-border value proposition.
Based on recent SEC filings and earnings calls, Mastercard Inc (MA) has provided the following forward guidance: Net revenue growth (currency-neutral basis, excluding inorganic activity): high end of low double-digits range (FY2026); Operating expense growth (currency-neutral basis, excluding inorganic activity): low double digits range (FY2026); Non-GAAP tax rate: 20%-21% (FY2026).
No recent press releases.