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Mastercard Incorporated — Intrinsic Value & Fair Price

MA
NYSEFinancial ServicesFinancial - Credit ServicesCIK 0001141391mastercard.comAbout MA
Last close · Oct 16, 2026617.42+1.10 (+0.18%)
Market cap$540.9B
Model value · DCF · Perpetuity growth · 5y
536.51
Mastercard closed at $617.42 — overvalued by 15% vs model.
340.21the model's range1,344.98

DCF · Perpetuity growth · 5y leads for profitable growth — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models
89.04 – 708.74
Wall St. target
680.50 9% below
Above model, 1y
16 of 21 days

Price and model value

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What the marks mean
Daily close

Dividends

Quarterly · as of Oct 16, 2026
Yield, trailing 12 months
0.56%
Past 2 years
low 0.48%high 0.69%
Dividends per share, a year at a time
$1.76Oct ’21$1.96Oct ’22$2.28Oct ’23$2.64Oct ’24$3.04Oct ’25$3.48TTM
Dividends / free cash flow, FY2025
16.1%
Raised
14 years in a row
Growth, 5 yrs
14.6% a year
Last change
+14.5% · Jan 2026
Every payment, with ex-dates · latest $0.87, paid Nov 9, 2026

Research on MA

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How it is valued

Valued asProfitable Growth
Moderate growth (~14% recent)High profitability (46% net margin)Moderately volatile earningsHigh leverage (D/E 2.5x)
What growth the price implies: the reverse DCF

Key figures

FY2025
P/E
37.4×
EV / EBITDA
26.9×
FCF yield
3.1%
Dividend yield, TTM
0.56%
Beta
0.76
Cost of capital (WACC)
8.42%
Full financials

Analyst actions

third-party, quoted
10-15BMO Capital · target665.00
10-09Robert W. Baird · target710.00
08-31RBC Capital · target696.00
02-13Freedom Broker · “Buy” from “Hold”upgrade
Ratings, targets and estimates

Comparable companies

by business, not by industry label
1 more company lists MA as a comparable
Side by side:vs AXPvs V

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About Mastercard

Mastercard Incorporated is a global technology firm specializing in providing transaction processing and a wide array of payment solutions, operating across the United States and internationally. Its core business centers on enabling the entire payment transaction lifecycle – including authorization, clearing, and settlement – alongside offering a spectrum of complementary payment services. The company provides a comprehensive suite of integrated products and value-added services to a diverse clientele, which includes individual account holders, merchants, financial institutions, businesses, governments, and other organizations. These offerings span programs enabling deferred payment credit, prepaid card management services, commercial credit and debit solutions, and tools for accessing funds in deposit and other accounts. Additionally, Mastercard offers advanced cyber and intelligence solutions designed to secure transactions for all participants, and provides proprietary insights derived from the responsible utilization of consumer and merchant data. For online merchants, its specialized offerings encompass analytics, experimental "test and learn" platforms, consulting, managed services, loyalty programs, payment processing, and secure gateway technologies. The company also operates open banking and digital identity platforms. Its prominent payment solutions are delivered under the MasterCard, Maestro, and Cirrus brands. Established in 1966, Mastercard Incorporated is headquartered in Purchase, New York.

CEO
Michael Miebach
Headquarters
Purchase, NY
Employees
39,800
IPO
2006-05-25
Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.