Mastercard Incorporated (MA) Fair Value & PE Analysis
Financial - Credit Services · NYSE
Current Price
$580.63
PE Ratio (TTM)
31.9x
Intrinsic Value
$856.09
+32.2% margin of safety
What Is Mastercard Incorporated's Fair Value?
As of 2026-08-21, applying a 31.5x earnings multiple to Mastercard Incorporated's (MA) earnings per share of $18.43 yields a fair value estimate of $856.09 per share, versus a market price of $580.63.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $722.65 to $1,006.6. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · MA intrinsic value (DCF view)
Is Mastercard Incorporated (MA) Overvalued?
At $580.63, MA trades below its PE-based fair value estimate by a wide margin. By this model the stock looks cheap relative to its earnings power, but check whether earnings are sustainable before reading too much into it.
COMPETITIVE MOAT
↑Global Payment Network Dominance
Mastercard operates a vast, interconnected network facilitating billions of transactions. This scale creates significant barriers to entry for new competitors.
↑Brand Recognition and Trust
The Mastercard brand is globally recognized and associated with security and reliability. This trust encourages widespread adoption by consumers and merchants.
↑Data and Scale Advantages
Mastercard leverages massive transaction data for fraud detection and network optimization. This scale provides a continuous competitive edge in efficiency and security.
INVESTMENT RISKS
↓Competition from Alternative Networks
Other payment networks and fintech solutions are vying for market share. Increased competition could pressure transaction volumes and pricing power.
↓Cybersecurity Threats
The interconnected nature of payment systems makes them targets for sophisticated cyberattacks. A major breach could severely damage trust and operational integrity.
↓Economic Downturns
Recessions can lead to reduced consumer spending and business activity. This directly impacts transaction volumes and revenue for payment processors.
Base case
MA base case PE valuation
Intrinsic Value
$856.09
Margin of safety
+32.2%
Expected annual return
+8.1%
Base case assumptions: 15.7% annual earnings growth, 31.5x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the MA PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Mastercard Incorporated respond.
Open PE Calculator for MACompany Overview
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.
Financial Metrics — MA PE Stock Valuation Data
PE Ratio (TTM)
31.9x
PEG Ratio
1.41
Earnings Yield
3.17%
ROE (TTM)
232.5%
Revenue/Share (TTM)
$39.78
Dividend Yield
0.58%
Debt/Equity
4.39x
Frequently Asked Questions
What is the PE ratio of MA?
The trailing twelve-month PE ratio of MA reflects how much investors pay per dollar of Mastercard Incorporated's earnings. This metric is most useful when compared to Financial - Credit Services peers and the company's own historical range.
Is MA overvalued based on PE ratio?
MA's PE of 31.9x combined with a PEG ratio of 1.41 provides a growth-adjusted perspective. A PEG near 1.0 means the P/E is roughly in line with the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Financial - Credit Services, a DCF analysis may be more appropriate.
How do I value MA stock using PE ratio?
To value Mastercard Incorporated using PE: (1) Compare the current PE (31.9x) against the Financial - Credit Services median to assess relative pricing, (2) check the PEG ratio (1.41) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of MA?
MA's PEG ratio is 1.41, calculated by dividing the PE ratio (31.9x) by the expected earnings growth rate. A PEG near 1.0 means the P/E is roughly in line with the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for MA stock valuation?
PE ratio gives a quick relative read — how MA is priced versus Financial - Credit Services peers. DCF provides an absolute value based on projected free cash flows. For MA, with a strong ROE of 232.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See MA DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value MA with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.