Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

Market Value Added (MVA)

Microsoft Excel LibreOffice Calc

MVA

Mastercard Inc., MVA calculation

US$ in millions

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Fair value of long-term debt, including the current portion1 14,800  9,200  6,500  5,700  5,300 
Operating lease liability 851  762  582  185  228 
Market value of common equity 338,737  342,692  226,254  181,385  118,205 
Redeemable non-controlling interests 29  74  71  71  — 
Non-controlling interests 97  24  23  29  28 
Less: Marketable securities 959  1,167  1,696  1,849  1,614 
Market (fair) value of Mastercard 353,555  351,585  231,734  185,521  122,147 
Less: Invested capital2 19,854  14,672  11,243  9,681  10,176 
MVA 333,701  336,913  220,491  175,840  111,971 

Based on: 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).

1 Fair value of debt. See details »

2 Invested capital. See details »

Item Description The company
MVA Mastercard Inc. market (fair) value less invested capital. Mastercard Inc. MVA increased from 2018 to 2019 but then slightly decreased from 2019 to 2020.

MVA Spread Ratio

Mastercard Inc., MVA spread ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 333,701  336,913  220,491  175,840  111,971 
Invested capital2 19,854  14,672  11,243  9,681  10,176 
Performance Ratio
MVA spread ratio3 1,680.77% 2,296.30% 1,961.07% 1,816.28% 1,100.32%
Benchmarks
MVA Spread Ratio, Competitors4
Accenture PLC 550.21% 505.40% 481.52% 496.80% 458.38%
Adobe Inc. 1,082.99% 884.94% 680.30% 847.52% 542.38%
Autodesk Inc. 538.60% 712.11% 829.14% 459.75% 263.98%
Automatic Data Processing Inc. 531.71% 696.65% 740.57% 591.35% 448.71%
Fidelity National Information Services Inc. 41.03% 56.84% 98.71% 84.96% 59.41%
Fiserv Inc. 69.66% 58.87% 299.38% 277.55% 238.19%
International Business Machines Corp. 39.12% 47.78% 58.57% 83.22% 106.46%
Intuit Inc. 976.09% 1,553.30% 1,330.67% 1,158.20% 988.58%
Microsoft Corp. 1,347.87% 983.69% 879.73% 560.71% 681.54%
Oracle Corp. 180.84% 220.64% 167.48% 189.67% 172.38%
PayPal Holdings Inc. 977.63% 556.21% 514.02% 425.37% 204.40%
salesforce.com inc. 226.77% 326.09% 401.75% 263.57% 333.61%
ServiceNow Inc. 2,570.21% 2,187.92% 1,589.74% 1,417.41% 1,067.59%
Visa Inc. 665.77% 695.79% 581.94% 426.48% 323.60%

Based on: 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).

1 MVA. See details »

2 Invested capital. See details »

3 2020 Calculation
MVA spread ratio = 100 × MVA ÷ Invested capital
= 100 × 333,701 ÷ 19,854 = 1,680.77%

4 Click competitor name to see calculations.

Performance ratio Description The company
MVA spread ratio The ratio of MVA to invested capital. It measures the efficiency with which investors’ capital investment has translated into a franchise value and into an aggregate net present value premium. Mastercard Inc. MVA spread ratio improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

MVA Margin

Mastercard Inc., MVA margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Selected Financial Data (US$ in millions)
Market value added (MVA)1 333,701  336,913  220,491  175,840  111,971 
 
Net revenue 15,301  16,883  14,950  12,497  10,776 
Add: Increase (decrease) in deferred revenue 154  25  72  —  — 
Adjusted net revenue 15,455  16,908  15,022  12,497  10,776 
Performance Ratio
MVA margin2 2,159.18% 1,992.62% 1,467.79% 1,407.06% 1,039.07%
Benchmarks
MVA Margin, Competitors3
Accenture PLC 279.96% 233.58% 202.17% 213.12% 181.64%
Adobe Inc. 1,554.19% 1,330.31% 1,114.60% 1,105.25% 703.93%
Autodesk Inc. 711.47% 1,160.93% 1,207.04% 685.72% 332.89%
Automatic Data Processing Inc. 350.03% 466.85% 405.73% 358.91% 304.06%
Fidelity National Information Services Inc. 243.93% 412.48% 262.79% 210.28% 154.14%
Fiserv Inc. 280.56% 355.04% 523.93% 442.97% 379.83%
International Business Machines Corp. 68.01% 81.54% 82.32% 113.30% 142.03%
Intuit Inc. 1,098.60% 1,034.92% 884.25% 643.71% 558.71%
Microsoft Corp. 976.86% 711.95% 612.04% 442.48% 356.91%
Oracle Corp. 411.93% 401.82% 302.52% 389.03% 298.85%
PayPal Holdings Inc. 1,378.91% 697.17% 591.48% 570.26% 309.16%
salesforce.com inc. 558.41% 642.42% 643.77% 473.14% 500.78%
ServiceNow Inc. 2,100.88% 1,606.76% 1,344.55% 1,143.86% 801.72%
Visa Inc. 1,874.98% 1,543.59% 1,343.46% 1,186.67% 1,012.98%

Based on: 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).

1 MVA. See details »

2 2020 Calculation
MVA margin = 100 × MVA ÷ Adjusted net revenue
= 100 × 333,701 ÷ 15,455 = 2,159.18%

3 Click competitor name to see calculations.

Performance ratio Description The company
MVA margin The ratio of MVA to sales. It measures how efficiently and prodigiously sales translate into franchise value. Mastercard Inc. MVA margin ratio improved from 2018 to 2019 and from 2019 to 2020.