Price to Sales (P/S)
since 2006
Calculation
Mastercard Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Net revenue1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 14, 2023 | 15.86 | = | 369.96 | ÷ | 23.33 | 23.33 | = | 22,237 | ÷ | 953,242,534 | |
| Feb 11, 2022 | 19.14 | = | 369.77 | ÷ | 19.32 | 19.32 | = | 18,884 | ÷ | 977,476,439 | |
| Feb 12, 2021 | 22.14 | = | 341.00 | ÷ | 15.40 | 15.40 | = | 15,301 | ÷ | 993,362,338 | |
| Feb 14, 2020 | 20.30 | = | 340.95 | ÷ | 16.80 | 16.80 | = | 16,883 | ÷ | 1,005,108,964 | |
| Feb 13, 2019 | 15.13 | = | 220.54 | ÷ | 14.57 | 14.57 | = | 14,950 | ÷ | 1,025,909,048 | |
| Feb 14, 2018 | 14.51 | = | 172.52 | ÷ | 11.89 | 11.89 | = | 12,497 | ÷ | 1,051,384,936 | |
| Feb 15, 2017 | 10.97 | = | 109.66 | ÷ | 10.00 | 10.00 | = | 10,776 | ÷ | 1,077,919,768 | |
| Feb 12, 2016 | 9.75 | = | 84.89 | ÷ | 8.70 | 8.70 | = | 9,667 | ÷ | 1,110,738,748 | |
| Feb 13, 2015 | 10.56 | = | 87.14 | ÷ | 8.25 | 8.25 | = | 9,473 | ÷ | 1,148,452,950 | |
| Feb 14, 2014 | 11.00 | = | 77.39 | ÷ | 7.03 | 7.03 | = | 8,346 | ÷ | 1,186,540,730 | |
| Feb 14, 2013 | 8.67 | = | 52.22 | ÷ | 6.02 | 6.02 | = | 7,391 | ÷ | 1,227,706,140 | |
| Feb 16, 2012 | 7.41 | = | 39.32 | ÷ | 5.31 | 5.31 | = | 6,714 | ÷ | 1,265,112,800 | |
| Feb 24, 2011 | 5.76 | = | 24.42 | ÷ | 4.24 | 4.24 | = | 5,539 | ÷ | 1,305,964,320 | |
| Feb 18, 2010 | 5.68 | = | 22.20 | ÷ | 3.91 | 3.91 | = | 5,099 | ÷ | 1,304,210,450 | |
| Feb 19, 2009 | 4.01 | = | 15.46 | ÷ | 3.86 | 3.86 | = | 4,992 | ÷ | 1,293,647,390 | |
| Feb 21, 2008 | 6.59 | = | 20.45 | ÷ | 3.10 | 3.10 | = | 4,068 | ÷ | 1,311,309,130 | |
| Feb 28, 2007 | 4.35 | = | 10.72 | ÷ | 2.46 | 2.46 | = | 3,326 | ÷ | 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 is characterized by substantial growth in both nominal share price and sales per share, accompanied by a significant expansion and subsequent contraction of the Price-to-Sales (P/S) valuation multiple.
- Revenue and Price Growth
- A consistent upward trend is observed in sales per share, which grew from 2.46 USD in 2007 to 23.33 USD by 2023. During the same period, the share price experienced an aggressive increase, rising from 10.72 USD to 369.96 USD. While both metrics trended upward, the rate of share price appreciation significantly outpaced the growth rate of sales per share for much of the analyzed period.
- Price-to-Sales Ratio Trends
- The P/S ratio exhibited three distinct phases. From 2007 to 2011, the ratio remained relatively stable, fluctuating between 4.01 and 6.59. A period of valuation expansion began in 2012, with the ratio climbing steadily from 7.41 to peak at 22.14 in 2021. This indicates a period where the market attributed increasing value to each dollar of revenue generated. Following this peak, a valuation contraction occurred, with the P/S ratio declining to 15.86 by 2023.
- Valuation Divergence and Correction
- Between 2018 and 2021, a sharp divergence is evident; the P/S ratio surged from 14.51 to 22.14, suggesting a rapid increase in investor optimism or a shift in market pricing. However, the data from 2022 and 2023 reveals a correction. Despite sales per share reaching their historical maximum of 23.33 USD in 2023, the P/S ratio compressed, indicating that the share price growth slowed relative to the underlying revenue growth.
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Comparison to Competitors
Mastercard Inc., P/S, 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 | 15.86 | 2.56 | 8.95 | 1.80 | 14.23 | 14.64 | 1.94 | 9.30 | 10.40 | 4.25 | 9.34 | 9.62 | 7.40 | 12.75 | 10.03 | 11.19 |
| Feb 11, 2022 | 19.14 | 4.28 | 14.94 | 5.99 | 12.55 | 49.25 | 1.94 | 16.09 | 12.81 | 5.38 | 15.58 | 10.72 | 9.24 | 19.02 | 13.22 | 13.95 |
| Feb 12, 2021 | 22.14 | 3.26 | 17.04 | — | 13.85 | 49.57 | 1.47 | 11.78 | 10.85 | 4.33 | 39.86 | 6.66 | 8.88 | 25.66 | 10.08 | 10.65 |
| Feb 14, 2020 | 20.30 | 2.72 | 15.11 | — | 8.56 | 36.28 | 1.63 | 11.05 | 8.38 | 4.74 | — | 7.06 | 9.00 | 19.36 | 6.27 | 14.75 |
| Feb 13, 2019 | 15.13 | 2.35 | 13.23 | — | 7.53 | — | 1.56 | 9.52 | 7.51 | 4.41 | — | 9.75 | 8.89 | 16.63 | 4.10 | 13.73 |
| Feb 14, 2018 | 14.51 | 2.45 | 13.32 | — | 5.85 | — | 1.82 | 6.99 | 6.19 | 5.56 | — | 7.49 | 6.96 | 14.55 | 4.80 | 11.06 |
| Feb 15, 2017 | 10.97 | 2.13 | 9.34 | — | 4.53 | — | 2.12 | 6.17 | 5.13 | 4.45 | — | 9.69 | 7.09 | 10.50 | 3.71 | 12.08 |
| Feb 12, 2016 | 9.75 | 2.11 | 9.27 | — | 3.73 | — | 1.56 | 5.56 | 3.99 | 4.66 | — | 16.88 | 7.82 | 8.69 | 3.07 | 19.97 |
| Feb 13, 2015 | 10.56 | 1.61 | 8.59 | — | 3.42 | — | 1.76 | 5.32 | 4.10 | 4.67 | — | 13.17 | 9.54 | 16.81 | 3.15 | 35.87 |
| Feb 14, 2014 | 11.00 | 1.64 | 7.45 | — | 2.96 | — | 1.91 | 4.47 | 3.41 | 3.75 | — | 8.38 | 8.92 | 22.61 | 3.12 | 37.91 |
| Feb 14, 2013 | 8.67 | 1.54 | 4.30 | — | 3.02 | — | 2.12 | 4.27 | 3.32 | 3.66 | — | 17.50 | 8.91 | 19.84 | 2.76 | — |
| Feb 16, 2012 | 7.41 | 1.47 | 3.65 | — | 2.81 | — | 2.15 | 3.71 | 3.32 | 4.60 | — | — | 9.79 | — | 2.52 | — |
| Feb 24, 2011 | 5.76 | 1.36 | 4.50 | — | 2.76 | — | 1.98 | 4.12 | 3.57 | 4.04 | — | — | 7.35 | — | 2.93 | — |
| Feb 18, 2010 | 5.68 | 1.20 | 6.12 | — | 1.81 | — | 1.72 | 2.81 | 3.63 | 4.63 | — | — | 3.52 | — | 2.33 | — |
| Feb 19, 2009 | 4.01 | 0.92 | 2.88 | — | 1.01 | — | 1.12 | 3.21 | 3.89 | 4.79 | — | — | 9.52 | — | 1.93 | — |
| Feb 21, 2008 | 6.59 | 1.41 | 6.24 | — | 1.91 | — | 1.60 | 3.61 | 20.52 | 5.60 | — | — | 9.94 | — | 3.16 | — |
| Feb 28, 2007 | 4.35 | 1.44 | 8.78 | — | 3.95 | — | 1.55 | 4.87 | 17.98 | 5.51 | — | — | 13.93 | — | 3.54 | — |
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/S, long-term trends, comparison to sector (software & services)
| Mastercard Inc. | Software & Services | |
|---|---|---|
| Feb 14, 2023 | 15.86 | 7.38 |
| Feb 11, 2022 | 19.14 | 9.45 |
| Feb 12, 2021 | 22.14 | 7.72 |
| Feb 14, 2020 | 20.30 | 6.11 |
| Feb 13, 2019 | 15.13 | 5.24 |
| Feb 14, 2018 | 14.51 | 4.65 |
| Feb 15, 2017 | 10.97 | 3.95 |
| Feb 12, 2016 | 9.75 | 3.41 |
| Feb 13, 2015 | 10.56 | 3.34 |
| Feb 14, 2014 | 11.00 | 2.89 |
| Feb 14, 2013 | 8.67 | 2.79 |
| Feb 16, 2012 | 7.41 | 2.85 |
| Feb 24, 2011 | 5.76 | 2.73 |
| Feb 18, 2010 | 5.68 | 2.61 |
| Feb 19, 2009 | 4.01 | 2.31 |
| Feb 21, 2008 | 6.59 | 6.95 |
| Feb 28, 2007 | 4.35 | 6.20 |
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/S, long-term trends, comparison to industry (information technology)
| Mastercard Inc. | Information Technology | |
|---|---|---|
| Feb 14, 2023 | 15.86 | 6.01 |
| Feb 11, 2022 | 19.14 | 6.98 |
| Feb 12, 2021 | 22.14 | 6.11 |
| Feb 14, 2020 | 20.30 | 4.62 |
| Feb 13, 2019 | 15.13 | 4.31 |
| Feb 14, 2018 | 14.51 | 4.18 |
| Feb 15, 2017 | 10.97 | 3.46 |
| Feb 12, 2016 | 9.75 | 3.03 |
| Feb 13, 2015 | 10.56 | 3.31 |
| Feb 14, 2014 | 11.00 | 2.85 |
| Feb 14, 2013 | 8.67 | 2.88 |
| Feb 16, 2012 | 7.41 | 2.84 |
| Feb 24, 2011 | 5.76 | 3.04 |
| Feb 18, 2010 | 5.68 | 3.11 |
| Feb 19, 2009 | 4.01 | 2.38 |
| Feb 21, 2008 | 6.59 | 5.73 |
| Feb 28, 2007 | 4.35 | 5.21 |
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).