Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Price to Book Value (P/BV) 
since 2006

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Calculation

Mastercard Inc., P/BV, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).

1 US$

2 Data adjusted for splits and stock dividends.

3 Closing price as at the filing date of Mastercard Inc. Annual Report.


The financial data reveals several noteworthy trends in the company's valuation and book value metrics over the reviewed period.

Share Price
The share price has exhibited a strong upward trajectory from 10.72 US$ in early 2007 to a peak of approximately 369.96 US$ by early 2023. Despite some fluctuations, including a notable dip around 2009 reflecting the global financial crisis, the overall trend has been one of consistent and substantial growth. This growth accelerated particularly from 2017 onwards, indicating increased market confidence and possibly improved business performance or growth expectations.
Book Value Per Share (BVPS)
The book value per share showed more moderate growth relative to the share price, increasing from 1.75 US$ in 2007 to a high of 7.48 US$ by 2022 before a slight decline to 6.61 US$ in 2023. The BVPS experienced several periods of stagnation or mild decline, particularly between 2014 and 2019, suggesting periods of limited growth in net assets or equity base. The gradual increase post-2019 indicates some recovery or reinvestment contributing to the equity value.
Price-to-Book Value Ratio (P/BV)
The P/BV ratio has increased dramatically over the period, moving from a multiple of 6.12 in 2007 to levels exceeding 50 by the early 2020s, peaking at about 58.15 in 2020 before settling slightly lower around 56 in 2023. These elevated P/BV ratios suggest that the market consistently values the company significantly above its book value, indicative of strong investor expectations regarding profitability, growth potential, or intangible assets not fully captured on the balance sheet. The sharp rise in this ratio in recent years reflects heightened market optimism or possibly a premium attached to the company’s brand or technology position.

Overall, the data points to a company whose market valuation has vastly outpaced the growth in its accounting book value, with the share price enjoying robust growth. The elevated and rising P/BV ratio confirms sustained investor confidence and a growth-oriented market perception despite occasional slowdowns in book value growth. This dynamic is typical for firms in sectors characterized by high growth, strong brand value, or significant intangible assets.


Comparison to Competitors

Mastercard Inc., P/BV, long-term trends, comparison to competitors

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Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).


Comparison to Sector (Software & Services)

Mastercard Inc., P/BV, long-term trends, comparison to sector (software & services)

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Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).


Comparison to Industry (Information Technology)

Mastercard Inc., P/BV, long-term trends, comparison to industry (information technology)

Microsoft Excel

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31).