Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

This company has been moved to the archive! The financial data has not been updated since April 27, 2023.

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Mastercard Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net income 9,930 8,687 6,411 8,118 5,859
Add: Income tax expense 1,802 1,620 1,349 1,613 1,345
Earnings before tax (EBT) 11,732 10,307 7,760 9,731 7,204
Add: Interest expense 471 431 380 224 186
Earnings before interest and tax (EBIT) 12,203 10,738 8,140 9,955 7,390
Add: Depreciation and amortization 750 726 580 522 459
Earnings before interest, tax, depreciation and amortization (EBITDA) 12,953 11,464 8,720 10,477 7,849

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).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Mastercard Inc. EBITDA increased from 2020 to 2021 and from 2021 to 2022.

Enterprise Value to EBITDA Ratio, Current

Mastercard Inc., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 358,700
Earnings before interest, tax, depreciation and amortization (EBITDA) 12,953
Valuation Ratio
EV/EBITDA 27.69
Benchmarks
EV/EBITDA, Competitors1
Accenture PLC 19.47
Adobe Inc. 28.49
International Business Machines Corp. 14.83
Intuit Inc. 45.53
Microsoft Corp. 29.34
Oracle Corp. 22.49
Palo Alto Networks Inc. 103.69
Salesforce Inc. 31.49
ServiceNow Inc. 95.49
Synopsys Inc. 55.41
EV/EBITDA, Sector
Software & Services 33.11
EV/EBITDA, Industry
Information Technology 28.85

Based on: 10-K (reporting date: 2022-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Mastercard Inc., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 357,178 365,060 338,628 341,613 222,600
Earnings before interest, tax, depreciation and amortization (EBITDA)2 12,953 11,464 8,720 10,477 7,849
Valuation Ratio
EV/EBITDA3 27.57 31.84 38.83 32.61 28.36
Benchmarks
EV/EBITDA, Competitors4
Accenture PLC 14.25 23.31 17.46 15.60 13.79
Adobe Inc. 22.32 35.44 43.06 41.16 37.27
International Business Machines Corp. 22.17 12.53 12.28 10.23
Intuit Inc. 36.22 51.96 35.70 34.27 31.25
Microsoft Corp. 20.17 24.59 21.74 17.21 15.67
Oracle Corp. 17.12 13.78 11.54 11.83 9.50
Palo Alto Networks Inc. 515.16 349.95 117.16
Salesforce Inc. 38.91 33.92 49.78 56.71
ServiceNow Inc. 104.30 147.45 220.91 187.17
Synopsys Inc. 36.73 53.43 42.24 26.98 21.34
EV/EBITDA, Sector
Software & Services 21.63 24.66 22.06 17.87
EV/EBITDA, Industry
Information Technology 18.28 20.37 19.53 14.42

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).

1 See details »

2 See details »

3 2022 Calculation
EV/EBITDA = EV ÷ EBITDA
= 357,178 ÷ 12,953 = 27.57

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Mastercard Inc. EV/EBITDA ratio decreased from 2020 to 2021 and from 2021 to 2022.