Price to Book Value (P/BV)
since 2006
Calculation
Mastercard Inc., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Total Mastercard Incorporated stockholders’ equity1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2023 | 56.00 | = | 369.96 | ÷ | 6.61 | 6.61 | = | 6,298 | ÷ | 953,242,534 | |
| Feb 11, 2022 | 49.43 | = | 369.77 | ÷ | 7.48 | 7.48 | = | 7,312 | ÷ | 977,476,439 | |
| Feb 12, 2021 | 53.00 | = | 341.00 | ÷ | 6.43 | 6.43 | = | 6,391 | ÷ | 993,362,338 | |
| Feb 14, 2020 | 58.15 | = | 340.95 | ÷ | 5.86 | 5.86 | = | 5,893 | ÷ | 1,005,108,964 | |
| Feb 13, 2019 | 41.94 | = | 220.54 | ÷ | 5.26 | 5.26 | = | 5,395 | ÷ | 1,025,909,048 | |
| Feb 14, 2018 | 33.17 | = | 172.52 | ÷ | 5.20 | 5.20 | = | 5,468 | ÷ | 1,051,384,936 | |
| Feb 15, 2017 | 20.90 | = | 109.66 | ÷ | 5.25 | 5.25 | = | 5,656 | ÷ | 1,077,919,768 | |
| Feb 12, 2016 | 15.64 | = | 84.89 | ÷ | 5.43 | 5.43 | = | 6,028 | ÷ | 1,110,738,748 | |
| Feb 13, 2015 | 14.74 | = | 87.14 | ÷ | 5.91 | 5.91 | = | 6,790 | ÷ | 1,148,452,950 | |
| Feb 14, 2014 | 12.27 | = | 77.39 | ÷ | 6.31 | 6.31 | = | 7,484 | ÷ | 1,186,540,730 | |
| Feb 14, 2013 | 9.27 | = | 52.22 | ÷ | 5.63 | 5.63 | = | 6,917 | ÷ | 1,227,706,140 | |
| Feb 16, 2012 | 8.48 | = | 39.32 | ÷ | 4.64 | 4.64 | = | 5,868 | ÷ | 1,265,112,800 | |
| Feb 24, 2011 | 6.13 | = | 24.42 | ÷ | 3.99 | 3.99 | = | 5,205 | ÷ | 1,305,964,320 | |
| Feb 18, 2010 | 8.26 | = | 22.20 | ÷ | 2.69 | 2.69 | = | 3,504 | ÷ | 1,304,210,450 | |
| Feb 19, 2009 | 10.38 | = | 15.46 | ÷ | 1.49 | 1.49 | = | 1,927 | ÷ | 1,293,647,390 | |
| Feb 21, 2008 | 8.86 | = | 20.45 | ÷ | 2.31 | 2.31 | = | 3,027 | ÷ | 1,311,309,130 | |
| Feb 28, 2007 | 6.12 | = | 10.72 | ÷ | 1.75 | 1.75 | = | 2,364 | ÷ | 1,350,846,950 |
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 trajectory from 2007 to 2023 reveals a profound divergence between the market valuation of the company and its accounting book value. While the share price experienced exponential growth, the book value per share grew at a significantly slower pace, leading to a substantial expansion of the Price to Book Value (P/BV) ratio.
- Share Price Appreciation
- A consistent and aggressive upward trend is observed in the share price, which rose from 10.72 US$ in February 2007 to 369.96 US$ by February 2023. This represents a massive increase in market capitalization that far outpaced the growth of tangible assets.
- Book Value per Share (BVPS) Dynamics
- The BVPS exhibited modest and non-linear growth. Starting at 1.75 US$ in 2007, it peaked at 7.48 US$ in 2022 before slightly declining to 6.61 US$ in 2023. Notable volatility is evident in the early period, specifically a decline to 1.49 US$ in 2009, followed by a period of relative stagnation between 2014 and 2023, where values largely fluctuated between 5.20 US$ and 7.48 US$.
- Price to Book Value (P/BV) Evolution
- The P/BV ratio evolved through three distinct valuation phases:
First, a period of relative stability occurred between 2007 and 2011, with the ratio generally fluctuating between 6.12 and 10.38.
Second, a phase of steady valuation expansion took place from 2012 to 2017, as the ratio climbed from 8.48 to 20.90, indicating increasing investor confidence in the company's intangible value or future earning potential.
Third, a period of hyper-expansion was observed from 2018 to 2023, where the ratio surged from 33.17 to a peak of 58.15 in 2020, eventually stabilizing in the 49.00 to 56.00 range.
- Analytical Insight on Valuation Decoupling
- The extreme increase in the P/BV ratio suggests that the market shifted its valuation focus away from the balance sheet's net asset value toward other drivers, such as network effects, intellectual property, and high return on equity. By 2023, the market price was approximately 56 times the book value, emphasizing that the company's value is derived primarily from intangible assets and future growth expectations rather than physical or monetary assets recorded on the balance sheet.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Mastercard Inc., P/BV, long-term trends, comparison to competitors
| Mastercard Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2023 | 56.00 | 7.13 | 11.22 | 2.67 | 18.46 | 17.39 | 5.34 | 7.20 | 12.38 | — | 6.94 | 252.00 | 3.37 | 18.36 | 9.24 | 12.68 |
| Feb 11, 2022 | 49.43 | 11.06 | 15.94 | 7.83 | 13.68 | 48.66 | 5.90 | 15.71 | 15.16 | 41.57 | 10.48 | 71.88 | 4.73 | 30.36 | 10.50 | 18.38 |
| Feb 12, 2021 | 53.00 | 8.51 | 16.53 | — | 14.90 | 31.25 | 5.24 | 17.71 | 13.11 | 14.01 | 28.60 | 20.61 | 4.48 | 40.91 | 7.57 | 15.54 |
| Feb 14, 2020 | 58.15 | 8.15 | 16.03 | — | 9.51 | 16.83 | 6.04 | 20.00 | 10.30 | 8.59 | — | 12.91 | 7.66 | 31.48 | 5.16 | 21.26 |
| Feb 13, 2019 | 41.94 | 9.44 | 12.76 | — | 12.50 | — | 7.40 | 24.12 | 10.02 | 3.84 | — | 22.92 | 9.93 | 39.03 | 3.68 | 18.62 |
| Feb 14, 2018 | 33.17 | 10.08 | 11.50 | — | 11.49 | — | 8.20 | 26.72 | 7.69 | 3.90 | — | 17.37 | 7.78 | 48.15 | 3.99 | 14.93 |
| Feb 15, 2017 | 20.90 | 9.83 | 7.37 | — | 11.10 | — | 9.30 | 24.96 | 6.08 | 3.49 | — | 16.91 | 9.45 | 37.73 | 2.81 | 12.36 |
| Feb 12, 2016 | 15.64 | 11.33 | 6.35 | — | 4.61 | — | 8.92 | 10.00 | 4.66 | 3.66 | — | 32.11 | 10.57 | 15.42 | 2.20 | 13.98 |
| Feb 13, 2015 | 14.74 | 8.96 | 5.26 | — | 4.06 | — | 13.73 | 7.79 | 3.96 | 3.82 | — | 16.81 | 12.79 | 26.77 | 2.12 | 14.17 |
| Feb 14, 2014 | 12.27 | 10.06 | 4.49 | — | 3.74 | — | 8.37 | 5.28 | 3.36 | 3.13 | — | 12.19 | 11.74 | 24.35 | 2.19 | 17.51 |
| Feb 14, 2013 | 9.27 | 11.05 | 2.84 | — | 4.38 | — | 11.77 | 6.46 | 3.68 | 3.11 | — | 19.49 | 12.73 | 19.86 | 1.93 | — |
| Feb 16, 2012 | 8.48 | 10.33 | 2.66 | — | 7.87 | — | 11.39 | 5.46 | 4.07 | 4.12 | — | — | 12.71 | — | 1.84 | — |
| Feb 24, 2011 | 6.13 | 11.06 | 3.29 | — | 9.33 | — | 8.57 | 5.05 | 4.84 | 3.52 | — | — | 9.19 | — | 1.93 | — |
| Feb 18, 2010 | 8.26 | 9.61 | 3.68 | — | 14.21 | — | 7.26 | 3.50 | 5.36 | 4.29 | — | — | 5.65 | — | 1.71 | — |
| Feb 19, 2009 | 10.38 | 9.15 | 2.34 | — | 10.30 | — | 8.61 | 4.76 | 6.47 | 4.66 | — | — | 15.76 | — | 1.68 | — |
| Feb 21, 2008 | 8.86 | 14.69 | 4.24 | — | 1.49 | — | 5.56 | 4.74 | 33.73 | 5.96 | — | — | 17.53 | — | 2.67 | — |
| Feb 28, 2007 | 6.12 | 13.85 | 4.39 | — | 3.45 | — | 4.96 | 6.56 | 19.86 | 5.28 | — | — | 21.98 | — | 3.34 | — |
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)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Feb 14, 2023 | 56.00 | 10.54 |
| Feb 11, 2022 | 49.43 | 13.51 |
| Feb 12, 2021 | 53.00 | 11.67 |
| Feb 14, 2020 | 58.15 | 10.06 |
| Feb 13, 2019 | 41.94 | 8.75 |
| Feb 14, 2018 | 33.17 | 7.21 |
| Feb 15, 2017 | 20.90 | 6.29 |
| Feb 12, 2016 | 15.64 | 5.39 |
| Feb 13, 2015 | 14.74 | 5.16 |
| Feb 14, 2014 | 12.27 | 4.47 |
| Feb 14, 2013 | 9.27 | 4.89 |
| Feb 16, 2012 | 8.48 | 5.40 |
| Feb 24, 2011 | 6.13 | 5.32 |
| Feb 18, 2010 | 8.26 | 5.46 |
| Feb 19, 2009 | 10.38 | 6.11 |
| Feb 21, 2008 | 8.86 | 15.50 |
| Feb 28, 2007 | 6.12 | 11.43 |
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)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Feb 14, 2023 | 56.00 | 10.25 |
| Feb 11, 2022 | 49.43 | 12.37 |
| Feb 12, 2021 | 53.00 | 10.94 |
| Feb 14, 2020 | 58.15 | 8.41 |
| Feb 13, 2019 | 41.94 | 7.00 |
| Feb 14, 2018 | 33.17 | 5.46 |
| Feb 15, 2017 | 20.90 | 4.53 |
| Feb 12, 2016 | 15.64 | 4.30 |
| Feb 13, 2015 | 14.74 | 4.36 |
| Feb 14, 2014 | 12.27 | 3.50 |
| Feb 14, 2013 | 9.27 | 3.75 |
| Feb 16, 2012 | 8.48 | 3.98 |
| Feb 24, 2011 | 6.13 | 4.16 |
| Feb 18, 2010 | 8.26 | 4.31 |
| Feb 19, 2009 | 10.38 | 4.00 |
| Feb 21, 2008 | 8.86 | 8.64 |
| Feb 28, 2007 | 6.12 | 7.24 |
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).