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Mastercard Inc
🇺🇸 MA · NYSE/NASDAQ · US57636Q1040
Bank
USD 530.91 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
30.7
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: 530.91 ÷ 17.28 = 30.7
TTM period through: 2026-03-31
Forward P/E (estimated): 26.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 31.3
Net Debt/EBITDA (TTM)
0.5x
Latest quarter: 1.9x
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: 2026-03-31
Latest quarter (2026-03-31): 1.9x
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).
ROE
2.3%
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
22.2x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Dividend Summary
Powered by EODHDDividend Yield (Fwd)
0.66%
TTM: 0.62%
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.
Forward Yield (estimated): 0.66%
Trailing Yield (TTM, last 12 months): 0.62%
Payout Ratio (Fwd)
20.1%
TTM: 18.2%
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 (Fwd): 20.1%
Payout (TTM): 18.2%
Cash Flow Payout (TTM): 15.6%
FCF Coverage (TTM): 6.24x
Growth Streak
8 yrs
Consec. increases
Div. Growth (5Y)
13.7%
Dividend History
EODHD Dividends API| Status | Type | Decl. Date | Ex-Div Date | Pay Date | Currency | Amount |
|---|---|---|---|---|---|---|
| Forecast* | Quarterly | — | 09 Apr 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Jan 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Oct 2026 | — | USD | 0.76 |
| Declared | Quarterly | 16 Jun 2026 | 09 Jul 2026 | 07 Aug 2026 | USD | 0.87 |
| Paid | Quarterly | 10 Feb 2026 | 09 Apr 2026 | 08 May 2026 | USD | 0.87 |
| Paid | Quarterly | 09 Dec 2025 | 09 Jan 2026 | 09 Feb 2026 | USD | 0.87 |
| Paid | Quarterly | 16 Sep 2025 | 09 Oct 2025 | 07 Nov 2025 | USD | 0.76 |
| Paid | Quarterly | 24 Jun 2025 | 09 Jul 2025 | 08 Aug 2025 | USD | 0.76 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Mastercard is an exceptional business operating a global payment duopoly with massive profit margins and a pristine dividend growth record. However, the current valuation at a 30.7x P/E offers limited upside, and the 0.66% yield falls well short of our strategy's income requirements. Existing shareholders should maintain positions given the exceptionally strong fundamentals, but new investors seeking immediate income should wait for a better entry point.
Sector Context
Mastercard operates a global digital payment network, acting as an essential toll bridge between consumers, merchants, and financial institutions. For dividend investors, while it boasts a highly defensible duopoly and massive free cash flow generation, its extremely low starting yield makes it more of a pure dividend growth play rather than a current income provider.
📊 Strategy Analysis
- • Exceptional business fundamentals with a massive economic moat, demonstrated by a dominant 58.18% EBIT margin and a flawless 9-year track record of double-digit dividend growth, including an announced 14.5% upcoming raise.
- • Pristine balance sheet with Net Debt/EBITDA of just 0.51x and robust free cash flow generation ($2.84B) that easily covers the highly sustainable 18.84% payout ratio.
⚠ What to Watch
- • Current valuation is highly stretched with a TTM P/E of 30.73, significantly exceeding the strategy's target range of 8-15x and offering no margin of safety.
- • The 0.66% forward dividend yield falls drastically short of the strategy's 3% minimum requirement for immediate income generation.
- • Faces ongoing structural and regulatory threats, including intense scrutiny over interchange fees, the Credit Card Competition Act (CCCA), and the global rise of alternative, cardless payment rails (e.g., FedNow, Pix).
📊 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: 2026-07-04
Disclaimer: This information is for educational purposes only. Not financial advice.