Mastercard Inc (MA)
OvervaluedFundamental
79
Price
$551.91
Market Cap
$497.80B
Part 1 · What the company is worth
Overview
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers products and services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; consumer bill payment services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from an existing account and leverages the credit limit of the funding account; and a platform to optimize supplier payment enablement campaigns for financial institutions. In addition, the company offers Mastercard Move, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and partners with central banks, fintechs, and financial institutions, as well as enables various cross-border payment flows. Further, it provides security solutions; marketing, personalization, and issuer and merchant loyalty services; business and operational intelligence, advanced analytics and AI, consulting and agentic solutions, and payments and portfolio optimization; digital and authentication; processing and gateway solutions; and other solutions. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus names. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$35.08B
Trailing 12 months (through 6/30/2026)
Net Income
$16.26B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$17.16B
Total Equity
$7.74B
Total Liabilities
$46.41B
Current Ratio
1.06
Interest Coverage
27.36
Debt/EBITDA
1.23
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$450.97
Current Price
$551.91
Margin of Safety
-22.4%
Fair Value Range
$293.13 - $608.81
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
30.33
ROE
193.5%
P/B Ratio
12.04
P/FCF
4.05
Gross Margin
-
ROIC
49.5%
Profitability Radar
Value Creation (Economic Moat)
ROIC
49.5%
WACC
8.6%
ROIC − WACC
+40.8 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (21)
- EPS shows upward trend
- Price CAGR 18.62%
- ROIC 49.5%
- P/FCF 4.05
- Operating Margin 58.3%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- DCF valuation (Undervalued)
- ROE 232.5%
- Revenue Growth 5Y 16.5%
- Analyst Consensus 91% Buy
- Earnings Surprise avg 2.8%
- PEG Ratio 1.45
- Earnings Quality (OCF/NI) 1.07
- Share Dilution -2.2%
- Net Margin Trend 46.3% vs 44.9%
- Piotroski F-Score 8/9
Failed (5)
- EPS CAGR 4.14%
- P/B Ratio 12.04
- Debt/Equity ratio
- Low reliance on intangibles
- Price below Graham Number
Unavailable (2)
- Gross Margin NaN%
- Dividend Payout NaN%
Piotroski F-Score
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Michael Miebach | CEO, President & Director | 57 |
| Mr. Timothy Henry Murphy J.D. | Vice Chair | 57 |
| Mr. Edward Grunde McLaughlin | President & CTO of Mastercard Technology | 59 |
| Mr. Craig E. Vosburg | Vice Chair | 58 |
| Ms. Linda Pistecchia Kirkpatrick | Chief Services Officer | 48 |
| Mr. Sachin Mehra | Chief Business Officer | 54 |
| Mr. Ling Hai | Chief Financial Officer | 54 |
| Mr. Chris Mullett | Corporate Controller & Principal Accounting Officer | 51 |
| Mr. Richard R. Verma Ph.D. | Chief Administrative Officer | 52 |
| Mr. Devin Corr | Executive Vice President of Investor Relations | - |
Audit Risk
4
Board Risk
2
Compensation Risk
5
Shareholder Rights Risk
3
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-11
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-07-30
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-07-30
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for MA, sourced from Markets Gazette.
- 8/7/2026NEUTRALCan new technology break Mastercard and Visa's duopoly?
Mastercard and Visa currently dominate the payment processing industry, generating substantial profits from transaction fees. However, emerging technologies and geopolitical shifts pose potential challenges to their long-standing duopoly. While the article highlights these risks, it does not present immediate data indicating a decline in their market position or profitability. Investors should monitor technological advancements and regulatory developments for potential future impacts on these payment giants.
- 8/5/2026NEUTRALMastercard, Borderless test shared identity checks for stablecoin transfers
Mastercard is collaborating with Borderless to integrate stablecoin transfers with its Crypto Credential framework, aiming to enhance trust in cross-border transactions. This pilot program seeks to leverage Mastercard's established payment infrastructure to provide more secure and reliable digital asset transfers. While the initiative highlights Mastercard's continued exploration of blockchain technology and its potential applications in payments, it is currently in a testing phase. The long-term impact on Mastercard's revenue and market position remains speculative until wider adoption and regulatory clarity emerge.
- 8/4/2026POSITIVEMastercard completes $1.8B BVNK acquisition in stablecoin push
Mastercard has finalized its acquisition of BVNK for $1.8 billion, a strategic move aimed at bolstering its presence in the stablecoin payment ecosystem. The integration is designed to empower banks, fintech firms, and corporations to enhance their stablecoin-based payment, payout, settlement, and treasury operations. This acquisition signals Mastercard's commitment to expanding its digital currency services and adapting to evolving financial technologies, potentially opening new revenue streams and solidifying its position in the digital payments landscape.
- 6/10/2026POSITIVEMastercard Just Built A Payment Network For AI Agents — And It Runs On Crypto
Mastercard has unveiled Agent Pay for AI, a novel protocol enabling AI agents to conduct peer-to-peer payments and micropayments. Crucially, the system stores human-granted permissions for AI agents on the Polygon blockchain, which operates on Ethereum. This development signifies a significant step towards integrating AI capabilities into financial infrastructure, potentially unlocking new revenue streams and use cases for digital transactions. For investors, this positions Mastercard at the forefront of innovation in the burgeoning AI economy, leveraging blockchain technology to create a secure and efficient payment network for autonomous agents.
- 6/3/2026POSITIVEMastercard Unveils Stablecoin Settlement Support Spanning 8 Blockchains, Including The XRP Ledger
Mastercard is expanding its payment network to support regulated stablecoins across eight blockchains, including the XRP Ledger, Arbitrum, Base, Ethereum, and Polygon. This initiative aims to enable direct on-chain clearing of card transactions for issuers and acquirers, enhancing liquidity management with intraday, weekend, and holiday settlement cycles. The move signifies a significant step towards integrating digital assets into traditional payment infrastructure, potentially increasing transaction efficiency and reducing settlement times. While initially limited to parts of the US and Latin America, Mastercard plans global expansion and the addition of more stablecoins and networks through 2026, subject to regulatory approval.
- 5/27/2026POSITIVEMastercard secures New York BitLicense for crypto operations
Mastercard has secured a New York BitLicense, granting it the legal authority to operate digital asset business activities within the state. This strategic move signifies the payments behemoth's deepening commitment to exploring and integrating blockchain technology for settlement systems. The license is a crucial step for Mastercard as it navigates the evolving landscape of digital finance, potentially unlocking new revenue streams and enhancing its service offerings in the cryptocurrency space. Investors may view this as a positive development, indicating proactive adaptation to emerging financial technologies.
via Markets Gazette