Stock Analysis on Net

Mastercard Inc. (NYSE:MA)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel LibreOffice Calc

Current Valuation Ratios

Mastercard Inc., current price multiples

Microsoft Excel LibreOffice Calc
Mastercard Inc. Accenture PLC Adobe Inc. Automatic Data Processing Inc. Fidelity National Information Services Inc. International Business Machines Corp. Intuit Inc. Microsoft Corp. Oracle Corp. PayPal Holdings Inc. salesforce.com inc. ServiceNow Inc. Visa Inc. Software & Services Information Technology
Selected Financial Data
Current share price (P) $336.18
No. shares of common stock outstanding 972,644,723
Growth rate (g) 84.30%
 
Earnings per share (EPS) $8.93
Next year expected EPS $16.46
Operating profit per share $10.37
Sales per share $19.42
Book value per share (BVPS) $7.52
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 37.64 29.69 39.11 33.54 146.00 20.12 50.44 30.90 13.32 22.37 109.46 376.55 33.68 30.84 26.36
Price to next year expected earnings 20.42 24.17 30.81 28.81 151.08 19.08 37.64 26.59 10.37 19.33 106.65 353.09 27.74 26.26 21.74
Price-earnings-growth (PEG) 0.45 1.30 1.45 2.04 3.67 1.48 1.90 0.47 1.42 41.61 56.68 1.57 1.77 1.24
Price to operating profit (P/OP) 32.43 23.01 32.50 26.22 57.71 16.83 41.61 27.08 12.04 21.88 288.42 336.99 26.23 27.16 23.23
Price to sales (P/S) 17.32 3.47 11.95 5.81 4.39 2.01 10.80 11.26 4.52 3.68 5.97 14.69 17.20 8.34 6.88
Price to book value (P/BV) 44.72 8.98 12.74 15.37 1.29 6.11 10.54 13.33 34.96 4.29 2.72 23.44 11.03 10.36 10.54

Based on: 10-K (reporting date: 2021-12-31).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Mastercard Inc., historical price multiples

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Price to earnings (P/E) 41.61 52.84 42.21 38.62 46.33
Price to operating profit (P/OP) 35.85 41.92 35.46 31.07 27.39
Price to sales (P/S) 19.14 22.14 20.30 15.13 14.51
Price to book value (P/BV) 49.43 53.00 58.15 41.94 33.17

Based on: 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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Mastercard Inc. P/E ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Mastercard Inc. P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Mastercard Inc. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Mastercard Inc. P/BV ratio decreased from 2019 to 2020 and from 2020 to 2021.

Price to Earnings (P/E)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 977,476,439 993,362,338 1,005,108,964 1,025,909,048 1,051,384,936
Selected Financial Data (US$)
Net income (in millions) 8,687  6,411  8,118  5,859  3,915 
Earnings per share (EPS)2 8.89 6.45 8.08 5.71 3.72
Share price1, 3 369.77 341.00 340.95 220.54 172.52
Valuation Ratio
P/E ratio4 41.61 52.84 42.21 38.62 46.33
Benchmarks
P/E Ratio, Competitors5
Accenture PLC 36.58 28.32 24.58 24.10 26.18
Adobe Inc. 48.90 41.69 57.17 46.11 57.41
Automatic Data Processing Inc. 34.52 23.49 31.75 36.29 28.56
Fidelity National Information Services Inc. 134.86 527.80 324.25 40.89 24.61
International Business Machines Corp. 19.40 19.30 13.35 14.25 25.07
Intuit Inc. 75.17 49.52 48.17 46.88 37.26
Microsoft Corp. 35.14 35.04 26.86 50.00 26.25
Oracle Corp. 15.84 16.69 16.89 45.90 22.49
PayPal Holdings Inc. 34.73 75.10 57.19 51.82 50.54
salesforce.com inc. 48.20 1,204.70 107.70 731.11 324.94
ServiceNow Inc. 487.70 978.47 106.89
Visa Inc. 34.83 40.76 32.08 30.03 37.19
P/E Ratio, Sector
Software & Services 35.53 39.25 30.78 39.37 31.51
P/E Ratio, Industry
Information Technology 29.52 32.90 24.56 24.15 24.68

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 8,687,000,000 ÷ 977,476,439 = 8.89

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

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 369.77 ÷ 8.89 = 41.61

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Mastercard Inc. P/E ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Operating Profit (P/OP)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 977,476,439 993,362,338 1,005,108,964 1,025,909,048 1,051,384,936
Selected Financial Data (US$)
Operating income (in millions) 10,082  8,081  9,664  7,282  6,622 
Operating profit per share2 10.31 8.13 9.61 7.10 6.30
Share price1, 3 369.77 341.00 340.95 220.54 172.52
Valuation Ratio
P/OP ratio4 35.85 41.92 35.46 31.07 27.39
Benchmarks
P/OP Ratio, Competitors5
Accenture PLC 28.35 22.21 18.63 16.75 19.47
Adobe Inc. 40.64 51.75 51.63 42.06 44.86
Automatic Data Processing Inc. 26.98 18.44 24.07 23.42 21.27
Fidelity National Information Services Inc. 53.30 151.07 99.72 23.73 21.76
International Business Machines Corp. 16.23 15.90 11.94 9.41 12.22
Intuit Inc. 62.00 41.56 40.45 37.92 25.94
Microsoft Corp. 30.79 29.30 24.54 23.63 24.93
Oracle Corp. 14.31 12.17 13.83 12.83 16.52
PayPal Holdings Inc. 33.98 95.94 51.72 48.58 42.65
salesforce.com inc. 431.39 511.08 223.46 395.31 908.77
ServiceNow Inc. 436.46 583.07 1,590.30
Visa Inc. 27.13 31.45 25.83 23.88 20.52
P/OP Ratio, Sector
Software & Services 31.28 32.61 26.76 23.04 22.88
P/OP Ratio, Industry
Information Technology 26.02 28.05 21.21 17.27 18.29

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 10,082,000,000 ÷ 977,476,439 = 10.31

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

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 369.77 ÷ 10.31 = 35.85

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Mastercard Inc. P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Sales (P/S)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 977,476,439 993,362,338 1,005,108,964 1,025,909,048 1,051,384,936
Selected Financial Data (US$)
Net revenue (in millions) 18,884  15,301  16,883  14,950  12,497 
Sales per share2 19.32 15.40 16.80 14.57 11.89
Share price1, 3 369.77 341.00 340.95 220.54 172.52
Valuation Ratio
P/S ratio4 19.14 22.14 20.30 15.13 14.51
Benchmarks
P/S Ratio, Competitors5
Accenture PLC 4.28 3.26 2.72 2.35 2.45
Adobe Inc. 14.94 17.04 15.11 13.23 13.32
Automatic Data Processing Inc. 5.98 3.97 5.13 4.41 4.00
Fidelity National Information Services Inc. 4.05 6.64 9.35 4.11 3.56
International Business Machines Corp. 1.94 1.47 1.63 1.56 1.82
Intuit Inc. 16.09 11.78 11.05 9.52 6.99
Microsoft Corp. 12.81 10.85 8.38 7.51 6.19
Oracle Corp. 5.38 4.33 4.74 4.41 5.56
PayPal Holdings Inc. 5.71 14.71 7.91 6.90 6.93
salesforce.com inc. 9.24 8.88 9.00 8.89 6.96
ServiceNow Inc. 19.02 25.66 19.36 16.63 14.55
Visa Inc. 17.79 20.27 16.86 15.01 13.57
P/S Ratio, Sector
Software & Services 9.61 8.85 7.34 6.11 5.50
P/S Ratio, Industry
Information Technology 7.70 7.30 5.69 4.74 4.58

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Net revenue ÷ No. shares of common stock outstanding
= 18,884,000,000 ÷ 977,476,439 = 19.32

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

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 369.77 ÷ 19.32 = 19.14

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Mastercard Inc. P/S ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Price to Book Value (P/BV)

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

Microsoft Excel LibreOffice Calc
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
No. shares of common stock outstanding1 977,476,439 993,362,338 1,005,108,964 1,025,909,048 1,051,384,936
Selected Financial Data (US$)
Total Mastercard Incorporated stockholders’ equity (in millions) 7,312  6,391  5,893  5,395  5,468 
Book value per share (BVPS)2 7.48 6.43 5.86 5.26 5.20
Share price1, 3 369.77 341.00 340.95 220.54 172.52
Valuation Ratio
P/BV ratio4 49.43 53.00 58.15 41.94 33.17
Benchmarks
P/BV Ratio, Competitors5
Accenture PLC 11.06 8.51 8.15 9.44 10.08
Adobe Inc. 15.94 16.53 16.03 12.76 11.50
Automatic Data Processing Inc. 15.82 10.07 13.48 17.00 12.45
Fidelity National Information Services Inc. 1.19 1.69 1.95 3.39 3.00
International Business Machines Corp. 5.90 5.24 6.04 7.40 8.20
Intuit Inc. 15.71 17.71 20.00 24.12 26.72
Microsoft Corp. 15.16 13.11 10.30 10.02 7.69
Oracle Corp. 41.57 14.01 8.59 3.84 3.90
PayPal Holdings Inc. 6.66 15.76 8.33 6.93 5.67
salesforce.com inc. 4.73 4.48 7.66 9.93 7.78
ServiceNow Inc. 30.36 40.91 31.48 39.04 48.15
Visa Inc. 11.41 12.23 11.17 9.10 7.61
P/BV Ratio, Sector
Software & Services 11.94 11.12 9.73 9.24 7.61
P/BV Ratio, Industry
Information Technology 11.80 10.88 8.49 7.42 5.79

Based on: 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).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Total Mastercard Incorporated stockholders’ equity ÷ No. shares of common stock outstanding
= 7,312,000,000 ÷ 977,476,439 = 7.48

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

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 369.77 ÷ 7.48 = 49.43

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Mastercard Inc. P/BV ratio decreased from 2019 to 2020 and from 2020 to 2021.