Price to Earnings (P/E)
since 2006
Calculation
Mastercard Inc., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2023 | 35.51 | = | 369.96 | ÷ | 10.42 | 10.42 | = | 9,930 | ÷ | 953,242,534 | |
| Feb 11, 2022 | 41.61 | = | 369.77 | ÷ | 8.89 | 8.89 | = | 8,687 | ÷ | 977,476,439 | |
| Feb 12, 2021 | 52.84 | = | 341.00 | ÷ | 6.45 | 6.45 | = | 6,411 | ÷ | 993,362,338 | |
| Feb 14, 2020 | 42.21 | = | 340.95 | ÷ | 8.08 | 8.08 | = | 8,118 | ÷ | 1,005,108,964 | |
| Feb 13, 2019 | 38.62 | = | 220.54 | ÷ | 5.71 | 5.71 | = | 5,859 | ÷ | 1,025,909,048 | |
| Feb 14, 2018 | 46.33 | = | 172.52 | ÷ | 3.72 | 3.72 | = | 3,915 | ÷ | 1,051,384,936 | |
| Feb 15, 2017 | 29.12 | = | 109.66 | ÷ | 3.77 | 3.77 | = | 4,059 | ÷ | 1,077,919,768 | |
| Feb 12, 2016 | 24.76 | = | 84.89 | ÷ | 3.43 | 3.43 | = | 3,808 | ÷ | 1,110,738,748 | |
| Feb 13, 2015 | 27.67 | = | 87.14 | ÷ | 3.15 | 3.15 | = | 3,617 | ÷ | 1,148,452,950 | |
| Feb 14, 2014 | 29.47 | = | 77.39 | ÷ | 2.63 | 2.63 | = | 3,116 | ÷ | 1,186,540,730 | |
| Feb 14, 2013 | 23.24 | = | 52.22 | ÷ | 2.25 | 2.25 | = | 2,759 | ÷ | 1,227,706,140 | |
| Feb 16, 2012 | 26.10 | = | 39.32 | ÷ | 1.51 | 1.51 | = | 1,906 | ÷ | 1,265,112,800 | |
| Feb 24, 2011 | 17.28 | = | 24.42 | ÷ | 1.41 | 1.41 | = | 1,846 | ÷ | 1,305,964,320 | |
| Feb 18, 2010 | 19.80 | = | 22.20 | ÷ | 1.12 | 1.12 | = | 1,463 | ÷ | 1,304,210,450 | |
| Feb 19, 2009 | — | = | 15.46 | ÷ | -0.20 | -0.20 | = | -254 | ÷ | 1,293,647,390 | |
| Feb 21, 2008 | 24.70 | = | 20.45 | ÷ | 0.83 | 0.83 | = | 1,086 | ÷ | 1,311,309,130 | |
| Feb 28, 2007 | 288.53 | = | 10.72 | ÷ | 0.04 | 0.04 | = | 50 | ÷ | 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 performance from 2007 to 2023 is characterized by substantial growth in both share price and earnings per share (EPS), alongside a significant evolution in the market valuation multiple.
- Earnings Per Share (EPS) Trajectory
- EPS exhibited a strong long-term upward trend, increasing from $0.04 in 2007 to $10.42 in 2023. A period of volatility was observed in the early stages, specifically in 2009 when earnings became negative (-$0.20). Following this dip, EPS grew steadily, with a marked acceleration in growth starting in 2019, where figures rose from $5.71 to $10.42 by the end of the period.
- Share Price Appreciation
- The share price demonstrated consistent and aggressive appreciation, rising from $10.72 in 2007 to $369.96 in 2023. A particularly rapid increase occurred between 2017 and 2020, during which the price rose from $109.66 to $340.95, reflecting a period of intense market value expansion.
- Price-to-Earnings (P/E) Ratio Dynamics
- The P/E ratio transitioned through three distinct valuation phases. The first phase was marked by extreme volatility, evidenced by a ratio of 288.53 in 2007 due to a minimal earnings base. The second phase, spanning from 2008 to 2016, showed relative stability with the ratio generally fluctuating between 17 and 30. The third phase began around 2018, characterized by a valuation re-rating where the multiple expanded significantly, reaching a peak of 52.84 in 2021. A subsequent compression is observed from 2021 to 2023, with the ratio moderating to 35.51.
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Comparison to Competitors
Mastercard Inc., P/E, 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 | 35.51 | 22.93 | 33.15 | — | 59.70 | — | 71.56 | 57.31 | 28.34 | 26.85 | — | — | 135.68 | 284.29 | 51.76 | 1,957.29 |
| Feb 11, 2022 | 41.61 | 36.58 | 48.90 | 472.35 | 53.88 | — | 19.40 | 75.17 | 35.14 | 15.84 | — | — | 48.20 | 487.70 | 73.37 | — |
| Feb 12, 2021 | 52.84 | 28.32 | 41.69 | — | 62.89 | — | 19.30 | 49.52 | 35.04 | 16.69 | — | — | 1,204.70 | 978.49 | 55.92 | — |
| Feb 14, 2020 | 42.21 | 24.58 | 57.17 | — | 20.22 | — | 13.35 | 48.17 | 26.86 | 16.89 | — | — | 107.70 | 106.89 | 39.55 | — |
| Feb 13, 2019 | 38.62 | 24.10 | 46.11 | — | 46.59 | — | 14.25 | 46.88 | 50.00 | 45.90 | — | — | 731.11 | — | 29.60 | — |
| Feb 14, 2018 | 46.33 | 26.18 | 57.41 | — | 55.67 | — | 25.07 | 37.26 | 26.25 | 22.49 | — | — | 324.94 | — | 95.81 | — |
| Feb 15, 2017 | 29.12 | 18.07 | 46.80 | — | 40.53 | — | 14.29 | 29.60 | 26.08 | 18.53 | — | — | — | — | 33.71 | — |
| Feb 12, 2016 | 24.76 | 22.75 | 70.59 | — | 25.14 | — | 9.65 | 63.89 | 30.63 | 17.92 | — | — | — | — | 30.45 | — |
| Feb 13, 2015 | 27.67 | 17.46 | 132.73 | — | 34.03 | — | 13.55 | 26.44 | 16.11 | 16.33 | — | — | — | — | 25.00 | — |
| Feb 14, 2014 | 29.47 | 15.20 | 104.21 | — | 26.30 | — | 11.58 | 21.73 | 12.14 | 12.78 | — | — | — | — | 24.68 | — |
| Feb 14, 2013 | 23.24 | 17.95 | 22.73 | — | 9.11 | — | 13.37 | 22.37 | 14.40 | 13.61 | — | 6,057.94 | — | — | 26.53 | — |
| Feb 16, 2012 | 26.10 | 17.60 | 18.49 | — | 44.80 | — | 14.47 | 22.53 | 10.03 | 19.17 | — | — | 251.73 | — | 17.51 | — |
| Feb 24, 2011 | 17.28 | 17.62 | 22.05 | — | 20.39 | — | 13.32 | 24.82 | 11.91 | 17.66 | — | — | 118.88 | — | 17.09 | — |
| Feb 18, 2010 | 19.80 | 17.45 | 46.62 | — | — | — | 12.24 | 20.01 | 14.56 | 19.25 | — | — | 87.39 | — | 18.86 | — |
| Feb 19, 2009 | — | 13.74 | 11.84 | — | — | — | 9.40 | 20.68 | 13.28 | 19.44 | — | — | 388.13 | — | 13.55 | — |
| Feb 21, 2008 | 24.70 | 24.38 | 27.23 | — | 10.43 | — | 15.20 | 21.92 | 74.58 | 23.58 | — | — | 10,271.10 | — | 29.39 | — |
| Feb 28, 2007 | 288.53 | 26.95 | 44.72 | — | 41.15 | — | 14.90 | 27.35 | 63.21 | 23.43 | — | — | 151.60 | — | 156.86 | — |
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/E, long-term trends, comparison to sector (software & services)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Feb 14, 2023 | 35.51 | 34.25 |
| Feb 11, 2022 | 41.61 | 37.62 |
| Feb 12, 2021 | 52.84 | 38.46 |
| Feb 14, 2020 | 42.21 | 28.30 |
| Feb 13, 2019 | 38.62 | 43.31 |
| Feb 14, 2018 | 46.33 | 30.27 |
| Feb 15, 2017 | 29.12 | 23.96 |
| Feb 12, 2016 | 24.76 | 23.38 |
| Feb 13, 2015 | 27.67 | 18.36 |
| Feb 14, 2014 | 29.47 | 14.09 |
| Feb 14, 2013 | 23.24 | 14.97 |
| Feb 16, 2012 | 26.10 | 13.91 |
| Feb 24, 2011 | 17.28 | 14.04 |
| Feb 18, 2010 | 19.80 | 15.17 |
| Feb 19, 2009 | — | 13.87 |
| Feb 21, 2008 | 24.70 | 43.67 |
| Feb 28, 2007 | 288.53 | 39.59 |
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/E, long-term trends, comparison to industry (information technology)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Feb 14, 2023 | 35.51 | 26.99 |
| Feb 11, 2022 | 41.61 | 29.75 |
| Feb 12, 2021 | 52.84 | 30.97 |
| Feb 14, 2020 | 42.21 | 23.40 |
| Feb 13, 2019 | 38.62 | 23.17 |
| Feb 14, 2018 | 46.33 | 23.55 |
| Feb 15, 2017 | 29.12 | 19.69 |
| Feb 12, 2016 | 24.76 | 16.54 |
| Feb 13, 2015 | 27.67 | 17.14 |
| Feb 14, 2014 | 29.47 | 14.15 |
| Feb 14, 2013 | 23.24 | 14.37 |
| Feb 16, 2012 | 26.10 | 13.71 |
| Feb 24, 2011 | 17.28 | 15.08 |
| Feb 18, 2010 | 19.80 | 21.50 |
| Feb 19, 2009 | — | 15.83 |
| Feb 21, 2008 | 24.70 | 36.48 |
| Feb 28, 2007 | 288.53 | 32.07 |
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).