Mastercard Inc
🇺🇸 MA · NYSE/NASDAQ · US57636Q1040
Bank
USD 493.44 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
29.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 493.44 ÷ 16.67 = 29.6
TTM period through: 2025-12-31
Forward P/E (estimated): 25.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 29.9
Yield (Fwd)
0.71%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 0.64%
Net Debt/EBITDA (TTM)
0.4x
Latest quarter: 1.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 1.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
20.9%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 18.4%
Cash Flow Payout (TTM): 15.8%
FCF Coverage (TTM): 6.14x
ROE
2.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
21.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Mastercard operates a formidable global duopoly in essential payment infrastructure, generating exceptional profitability and reliable cash flows. While the company offers flawless dividend growth and a pristine balance sheet, current valuation at nearly 30x earnings and a 0.64% yield offers limited upside for pure income investors. Existing shareholders should maintain positions given the immense economic moat, but new investors seeking immediate yield may want to monitor for a better entry point.
Sector Context
Mastercard operates a global payment processing network, acting as an essential digital toll road connecting consumers, merchants, and financial institutions. Although classified under the banking sector, it operates without the traditional credit risk of commercial lending, instead generating highly predictable, asset-light fee income from global transaction volumes.
📊 Strategy Analysis
- • Dominant global payment network duopoly generating exceptional profitability with EBITDA margins of 61.58%.
- • Flawless 10-year dividend track record featuring a 16.8% CAGR, fully supported by a conservative Free Cash Flow payout ratio of 15.84%.
- • Pristine balance sheet with a Net Debt/EBITDA ratio of 0.39x, providing immense financial flexibility.
⚠ What to Watch
- • Current valuation is highly stretched with a TTM P/E of 29.60, significantly exceeding the strategy target range of 8-15x and the $300 monopoly fair value upper bound.
- • The 0.64% TTM dividend yield is fundamentally insufficient for strategies requiring immediate high-yield income (minimum 3%).
- • Macroeconomic headwinds, including persistent inflation and elevated energy costs, could temporarily pressure consumer spending and transaction volumes.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.