Price to Operating Profit (P/OP)
since 2006
Calculation
Mastercard Inc., P/OP, long-term trends, calculation
| P/OP | = | Share price1, 2, 3 | ÷ | Operating profit per share1 | Operating profit per share1 | = | Operating income (loss)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2023 | 28.76 | = | 369.96 | ÷ | 12.87 | 12.87 | = | 12,264 | ÷ | 953,242,534 | |
| Feb 11, 2022 | 35.85 | = | 369.77 | ÷ | 10.31 | 10.31 | = | 10,082 | ÷ | 977,476,439 | |
| Feb 12, 2021 | 41.92 | = | 341.00 | ÷ | 8.13 | 8.13 | = | 8,081 | ÷ | 993,362,338 | |
| Feb 14, 2020 | 35.46 | = | 340.95 | ÷ | 9.61 | 9.61 | = | 9,664 | ÷ | 1,005,108,964 | |
| Feb 13, 2019 | 31.07 | = | 220.54 | ÷ | 7.10 | 7.10 | = | 7,282 | ÷ | 1,025,909,048 | |
| Feb 14, 2018 | 27.39 | = | 172.52 | ÷ | 6.30 | 6.30 | = | 6,622 | ÷ | 1,051,384,936 | |
| Feb 15, 2017 | 20.52 | = | 109.66 | ÷ | 5.34 | 5.34 | = | 5,761 | ÷ | 1,077,919,768 | |
| Feb 12, 2016 | 18.57 | = | 84.89 | ÷ | 4.57 | 4.57 | = | 5,078 | ÷ | 1,110,738,748 | |
| Feb 13, 2015 | 19.60 | = | 87.14 | ÷ | 4.45 | 4.45 | = | 5,106 | ÷ | 1,148,452,950 | |
| Feb 14, 2014 | 20.39 | = | 77.39 | ÷ | 3.80 | 3.80 | = | 4,503 | ÷ | 1,186,540,730 | |
| Feb 14, 2013 | 16.28 | = | 52.22 | ÷ | 3.21 | 3.21 | = | 3,937 | ÷ | 1,227,706,140 | |
| Feb 16, 2012 | 18.34 | = | 39.32 | ÷ | 2.14 | 2.14 | = | 2,713 | ÷ | 1,265,112,800 | |
| Feb 24, 2011 | 11.59 | = | 24.42 | ÷ | 2.11 | 2.11 | = | 2,752 | ÷ | 1,305,964,320 | |
| Feb 18, 2010 | 12.81 | = | 22.20 | ÷ | 1.73 | 1.73 | = | 2,260 | ÷ | 1,304,210,450 | |
| Feb 19, 2009 | — | = | 15.46 | ÷ | -0.41 | -0.41 | = | -535 | ÷ | 1,293,647,390 | |
| Feb 21, 2008 | 24.20 | = | 20.45 | ÷ | 0.85 | 0.85 | = | 1,108 | ÷ | 1,311,309,130 | |
| Feb 28, 2007 | 63.10 | = | 10.72 | ÷ | 0.17 | 0.17 | = | 229 | ÷ | 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.
- Share Price Trend
- The share price demonstrates a general upward trajectory from 2007 to 2023. Starting at $10.72 in 2007, the price more than tripled by 2011, reaching $24.42, followed by a sharper increase to $77.39 in 2014. The price continued rising with minor fluctuations, peaking around $369.96 in 2023. Notably, there was a substantial surge between 2018 and 2020, reflecting strong market confidence.
- Operating Profit Per Share (OPPS)
- Operating profit per share displays growth over the period with some volatility. An initial positive value of $0.17 was recorded in 2007, followed by a drop to a negative $0.41 in 2009, indicating a loss during that fiscal year. From 2010 onwards, OPPS showed consistent recovery and growth, increasing from $1.73 to $12.87 by 2023. The overall trend suggests improving operational efficiency and profitability.
- P/OP Ratio Analysis
- The Price to Operating Profit (P/OP) ratio exhibits considerable fluctuations. Starting at a high of 63.1 in 2007, it fell sharply by 2010 to around 12.81, reflecting either a price adjustment or recovery in profits. From 2011 to 2015, the ratio hovered between 11.59 and 20.39, indicating moderate market valuation in relation to earnings. Subsequently, the ratio increased again, peaking at 41.92 in 2021, before declining to 28.76 in 2023. This pattern may point to periods of market optimism followed by valuation normalization.
- Overall Insights
- The data suggests a robust increase in shareholder value as indicated by the rising share price and improving operating profit per share over the long term. The temporary dip in profitability around 2009 likely reflects external economic challenges. The P/OP ratio indicates shifting investor expectations and market sentiment, with periods of high valuation possibly driven by growth prospects or market exuberance. More recently, despite soaring profit per share, valuation metrics have moderated, suggesting a potentially more cautious market stance or alignment with fundamental performance.
Comparison to Competitors
Mastercard Inc., P/OP, long-term trends, comparison to competitors
| Mastercard Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palantir Technologies Inc. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2023 | 28.76 | 16.83 | 25.85 | 47.21 | — | 46.05 | 24.72 | 16.51 | — | — | 357.52 | 260.26 | 43.85 | — |
| Feb 11, 2022 | 35.85 | 28.35 | 40.64 | 48.13 | — | 62.00 | 30.79 | 14.31 | — | — | 431.39 | 436.46 | 75.64 | — |
| Feb 12, 2021 | 41.92 | 22.21 | 51.75 | 57.54 | — | 41.56 | 29.30 | 12.17 | — | — | 511.08 | 583.07 | 59.90 | — |
| Feb 14, 2020 | 35.46 | 18.63 | 51.63 | 40.67 | — | 40.45 | 24.54 | 13.83 | — | — | 223.46 | 1,590.30 | 40.48 | — |
| Feb 13, 2019 | 31.07 | 16.75 | 42.06 | 40.66 | — | 37.92 | 23.63 | 12.83 | — | — | 395.31 | — | 35.54 | — |
| Feb 14, 2018 | 27.39 | 19.47 | 44.86 | 35.08 | — | 25.94 | 24.93 | 16.52 | — | — | 908.77 | — | 37.64 | — |
| Feb 15, 2017 | 20.52 | 15.44 | 36.62 | 33.61 | — | 23.33 | 21.70 | 13.09 | — | — | 411.51 | — | 28.34 | — |
| Feb 12, 2016 | 18.57 | 15.66 | 49.21 | 22.23 | — | 31.60 | 20.57 | 12.84 | — | — | — | — | 25.82 | — |
| Feb 13, 2015 | 19.60 | 11.94 | 86.32 | 26.17 | — | 18.25 | 12.81 | 12.12 | — | — | — | — | 26.04 | — |
| Feb 14, 2014 | 20.39 | 11.50 | 71.49 | 22.85 | — | 15.12 | 9.91 | 9.51 | — | — | — | — | 24.81 | — |
| Feb 14, 2013 | 16.28 | 11.84 | 16.04 | 18.94 | — | 15.05 | 11.23 | 9.91 | — | 1,147.44 | — | — | 25.46 | — |
| Feb 16, 2012 | 18.34 | 11.55 | 14.01 | 26.88 | — | 14.19 | 8.55 | 13.61 | — | — | 166.46 | — | 18.21 | — |
| Feb 24, 2011 | 11.59 | 10.76 | 17.20 | — | — | 16.51 | 9.27 | 11.95 | — | — | 83.25 | — | 22.01 | — |
| Feb 18, 2010 | 12.81 | 10.49 | 26.10 | — | — | 13.11 | 10.42 | 12.94 | — | — | 59.54 | — | 15.18 | — |
| Feb 19, 2009 | — | 7.72 | 10.04 | — | — | 15.15 | 10.44 | 13.68 | — | — | 350.81 | — | 11.75 | — |
| Feb 21, 2008 | 24.20 | 12.16 | 22.98 | 9.72 | — | 15.13 | 56.63 | 16.87 | — | — | — | — | 32.49 | — |
| Feb 28, 2007 | 63.10 | 14.25 | 41.03 | 26.13 | — | 20.38 | 48.35 | 16.72 | — | — | 214.74 | — | 131.87 | — |
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).