Enterprise Value (EV)
Current Enterprise Value (EV)
Mastercard Inc., current enterprise value calculation
| Current share price (P) | $373.67 |
| No. shares of common stock outstanding | 947,852,601 |
| US$ in millions | |
| Common equity (market value)1 | 354,184) |
| Add: Non-controlling interests (per books) | 58) |
| Total equity | 354,242) |
| Add: Short-term debt (per books) | 274) |
| Add: Long-term debt, excluding current portion (per books) | 13,749) |
| Total equity and debt | 368,265) |
| Less: Cash and cash equivalents | 7,008) |
| Less: Restricted cash for litigation settlement | 589) |
| Less: Investments | 400) |
| Less: Restricted security deposits held for customers | 1,568) |
| Enterprise value (EV) | 358,700) |
Based on: 10-K (reporting date: 2022-12-31).
1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 373.67 × 947,852,601
Historical Enterprise Value (EV)
Mastercard Inc., EV calculation
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 Data adjusted for splits and stock dividends.
2 Closing price as at the filing date of Mastercard Inc. Annual Report.
3 2022 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 369.96 × 953,242,534
The financial data reveals a significant expansion in the overall valuation of the organization between 2018 and 2021, followed by a slight contraction in 2022.
- Enterprise Value Trend
- A substantial increase in Enterprise Value (EV) is observed from 2018 to 2019, rising from US$ 222,600 million to US$ 341,613 million. This growth trajectory continued toward a peak of US$ 365,060 million in 2021, before experiencing a moderate decline to US$ 357,178 million by the end of 2022.
- Equity Market Valuation
- Common equity market value closely mirrored the movements of the Enterprise Value. A sharp rise was recorded between 2018 and 2019, with a subsequent peak in 2021 at US$ 361,441 million. The high degree of correlation between market value and total equity suggests a valuation closely tied to the company's equity base.
- Capital Structure and Leverage
- The narrow differential between total equity and total equity and debt indicates a conservative leverage profile. Total equity and debt peaked in 2021 at US$ 375,413 million, maintaining a consistent relationship with the total equity figures throughout the period, which suggests limited reliance on external debt financing.
- Enterprise Value and Market Capitalization Relationship
- The Enterprise Value consistently remained slightly below the market value of common equity for the majority of the analyzed period. This pattern typically indicates a net cash position where cash and cash equivalents exceed total debt, thereby reducing the overall enterprise cost relative to the equity market capitalization.
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