MA

Mastercard

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Credit Services

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/07/26

Business Summary

Mastercard operates a global payment network that facilitates electronic transactions between consumers, merchants, and financial institutions, earning fees on transaction volume rather than taking direct credit risk. Its moat is rooted in network effects: more cardholders attract more merchants, and more merchants attract more cardholders, reinforcing scale. The company generates cash through assessment and transaction processing fees, which scale efficiently as volumes rise, driving high operating leverage. Because it sits at the center of payment authorization and settlement, switching costs are high and global acceptance forms a durable competitive barrier.

VALUATION

P/E

30.2

Market Cap ($M USD)

$444,711

Forward P/E

22

PEG

1.4

PRICE TO SALES

13.8

PRICE TO BOOK

57.5

EV / EBITDA

22.2

5-Year Average P/E

DIVIDEND

Yield

0.70%

Annual Payout

$3.48

Payout Ratio

18.40%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

14.60%

Financial Health & Profitability

Earnings Per Share

$16.54

Next Year EPS Growth Estimate

$22.66

Next Year Revenue Growth Estimate

12.20%

Return on Equity (ROE)

193.50%

Operating Margin

59.50%

Debt-to-Equity

2.5

Piotroski F-Score

8

Altman Z-Score

9.8

Return on Invested Capital (ROIC)

60.50%%

Current Ratio

1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 30.2x earnings and 22x forward earnings, the market is paying a premium for durability, but not irrationally so given the company’s 9.8 Altman Z-Score and 1.4 PEG Forward. A 9.8 Z-Score signals extremely low bankruptcy risk, while the compression from a 30.2 P/E to a 22 Forward P/E implies earnings expansion that the market believes is credible. This is not deep value, but it is high-quality growth at a reasonable price, especially with a Piotroski F-Score of 8 and ROIC of 60.50%. The valuation suggests confidence, not euphoria, and the balance sheet strength supports that confidence. The stock looks fairly priced to slightly undervalued relative to its capital efficiency and financial safety.

AI Exposure / Tech Reliance

Operating in Credit Services within Financial Services, the company sits directly on digital transaction infrastructure, which is inherently leveraged to AI-driven fraud detection, underwriting analytics, and transaction optimization. AI enhances risk modeling and authorization efficiency, reinforcing already high operating leverage reflected in the 193.50% Operating Margin. As commerce digitizes further, the company’s network-driven model positions it to absorb technological shifts rather than be disrupted by them.

The Bull Case

A GARP investor buys this because 60.50% ROIC is elite capital allocation efficiency, and an 8 Piotroski F-Score signals operational strength and improving fundamentals. Despite a 30.2 P/E, the 22 Forward P/E and 1.4 PEG Forward suggest growth is arriving fast enough to justify the multiple. The 193.50% Operating Margin demonstrates extraordinary scalability, while a 12.20% Return on Equity shows consistent profitability even before considering leverage. Add a 9.8 Altman Z-Score and a Current Ratio of 1, and you have a financially stable compounder with institutional-grade characteristics. This is the kind of asset long-term funds accumulate during volatility, not trade around.

The Bear Case

There are structural concerns. A 59.50% Debt / Equity ratio introduces leverage risk, and a 14.60% Short % of Float signals that a meaningful portion of the market is betting against the narrative. The 57.5 Price / Book ratio is extremely rich, implying that any slowdown could compress multiples sharply. EPS of 22.2 versus EPS Next Year (Est.) of $16.54 raises questions about earnings trajectory, and a 1.4 PEG Forward leaves little margin for execution error. When expectations are embedded in a 30.2 P/E and 13.8 Price / Sales ratio, even minor disappointments can trigger disproportionate downside.

Market Sentiment & Smart Money

Short Interest %

0.70%

Analyst Consensus

1.32

Average Analyst Price Target

$655.11

Institutional Ownership %

91.00%

1-Year Beta

0.7

Insider Buying % (6 Mo)

0.50%%

Distance to 52-Week High

82.90%%

Distance to 52-Week Low

103.80%%