Stock Analysis on Net
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.

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Mastercard Inc., FCFE 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
Net noncash charges 2,169 1,692 1,963 1,763 1,677
Changes in operating assets and liabilities (904) (916) (1,150) (1,698) (1,313)
Net cash provided by operating activities 11,195 9,463 7,224 8,183 6,223
Purchases of property and equipment (442) (407) (339) (422) (330)
Capitalized software (655) (407) (369) (306) (174)
Proceeds from debt, net 1,123 2,024 3,959 2,724 991
Payment of debt (724) (650) — (500) —
Free cash flow to equity (FCFE) 10,497 10,023 10,475 9,679 6,710

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
FCFE Free cash flow to equity is the cash flow available to Mastercard Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Mastercard Inc. FCFE decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.

Price to FCFE Ratio, Current

Mastercard Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 947,852,601
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 10,497
FCFE per share 11.07
Current share price (P) 373.67
Valuation Ratio
P/FCFE 33.74
Benchmarks
P/FCFE, Competitors1
Accenture PLC 21.38
Adobe Inc. 32.92
International Business Machines Corp. 9.14
Intuit Inc. 44.11
Microsoft Corp. 52.27
Oracle Corp. 14.75
Palo Alto Networks Inc. 99.35
Salesforce Inc. 34.47
ServiceNow Inc. 54.30
Synopsys Inc. 53.52
P/FCFE, Sector
Software & Services 43.98
P/FCFE, Industry
Information Technology 39.86

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

1 Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

Mastercard Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
No. shares of common stock outstanding1 953,242,534 977,476,439 993,362,338 1,005,108,964 1,025,909,048
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 10,497 10,023 10,475 9,679 6,710
FCFE per share3 11.01 10.25 10.54 9.63 6.54
Share price1, 4 369.96 369.77 341.00 340.95 220.54
Valuation Ratio
P/FCFE5 33.60 36.06 32.34 35.41 33.72
Benchmarks
P/FCFE, Competitors6
Accenture PLC 17.91 25.76 19.01 19.50 18.11
Adobe Inc. 21.32 34.26 41.36 41.90 19.87
International Business Machines Corp. 11.97 48.45 9.43 4.39 —
Intuit Inc. 13.86 86.74 17.36 34.61 29.29
Microsoft Corp. 36.73 42.54 42.74 30.77 37.57
Oracle Corp. — 8.36 6.27 22.31 10.78
Palo Alto Networks Inc. 29.54 32.91 8.11 46.20 8.50
Salesforce Inc. 16.56 49.52 50.40 29.09 —
ServiceNow Inc. 44.44 64.54 49.83 68.98 —
Synopsys Inc. 33.41 40.55 45.07 77.64 19.63
P/FCFE, Sector
Software & Services 30.43 33.49 25.65 21.90 —
P/FCFE, Industry
Information Technology 26.56 27.30 23.29 18.92 —

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 See details »

3 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 10,497,000,000 ÷ 953,242,534 = 11.01

4 Closing price as at the filing date of Mastercard Inc. Annual Report.

5 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 369.96 ÷ 11.01 = 33.60

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Mastercard Inc. P/FCFE ratio increased from 2020 to 2021 but then slightly decreased from 2021 to 2022 not reaching 2020 level.