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.
The analysis of financial metrics from 2007 to 2023 reveals a strong long-term growth trajectory in both share price and operating profit per share, accompanied by significant fluctuations in the Price to Operating Profit (P/OP) ratio.
- Share Price and Operating Profit Trends
- The share price experienced substantial growth over the observed period, rising from 10.72 USD in 2007 to 369.96 USD in 2023. Concurrently, operating profit per share showed a generally positive trend, increasing from 0.17 USD in 2007 to 12.87 USD in 2023, despite a notable contraction to -0.41 USD in 2009.
- P/OP Ratio Volatility and Reset (2007–2011)
- The period began with an exceptionally high P/OP ratio of 63.10 in 2007, which sharply declined to 24.20 in 2008. Following a period of negative operating profits in 2009, the ratio stabilized at its lowest levels between 2010 and 2011, reaching a minimum of 11.59.
- Valuation Stability (2012–2017)
- From 2012 to 2017, the P/OP ratio exhibited relative consistency, oscillating within a narrow range between 16.28 and 20.52. This indicates a phase where the market valuation expanded in close proportion to the growth in operating performance.
- Valuation Expansion and Subsequent Correction (2018–2023)
- A significant upward trend in the P/OP ratio emerged starting in 2018 at 27.39, peaking at 41.92 in 2021. This suggests a period of valuation expansion where share price appreciation significantly outpaced the growth of operating profits. However, a corrective trend followed in 2022 and 2023, with the ratio decreasing to 28.76, reflecting a contraction in the multiple relative to the operating profit per share.
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Comparison to Competitors
Mastercard Inc., P/OP, long-term trends, comparison to competitors
| Mastercard Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | Datadog 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 | 260.27 | 43.85 | — |
| Feb 11, 2022 | 35.85 | 28.35 | 40.64 | 111.61 | 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 | 583.08 | 59.90 | — |
| Feb 14, 2020 | 35.46 | 18.63 | 51.63 | — | 40.67 | — | 40.45 | 24.54 | 13.83 | — | — | 223.46 | 1,590.34 | 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).