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Mastercard Inc
🇺🇸 MA · NYSE/NASDAQ
Bank
Price at analysis: USD 616.87 Current price: USD 609.78 * updated every night
Scores
Key Metrics
Powered by EODHDP/E (TTM)
33.9
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: 616.87 ÷ 18.18 = 33.9
TTM period through: 2026-06-30
Forward P/E (estimated): 24.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 33.3
Net Debt/EBITDA (TTM)
0.6x
Latest quarter: 2.2x
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: 2026-06-30
Latest quarter (2026-06-30): 2.2x
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
2.4%
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
22.8x
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)
0.71%
TTM: 0.56%
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): 0.71%
Trailing Yield (TTM, last 12 months): 0.56%
Payout Ratio (Fwd)
19.1%
TTM: 18.0%
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): 19.1%
Payout (TTM): 18.0%
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 Oct 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Jul 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Apr 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Jan 2027 | — | USD | 0.87 |
| Declared | Quarterly | 29 Sep 2026 | 09 Oct 2026 | 09 Nov 2026 | USD | 0.87 |
| Paid | 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 |
* Extrapolated from past dividend history. Not an official announcement — treat as an estimate, not a confirmed date or amount.
Summary
Mastercard is an exceptional, wide-moat compounder with elite profit margins and a stellar double-digit dividend growth trajectory. However, the premium 33.94x P/E valuation and minimal 0.56% dividend yield make it an unattractive entry point for immediate income generation. Existing holders should maintain, as the underlying business remains incredibly resilient, but new DGI buyers should wait for a substantial valuation reset.
Sector Context
Mastercard is a global payment processing network. While categorized under banking/credit services, it operates as a high-margin technology tollbooth. For DGI investors, its massive cash flow generation is attractive, but its buyback-first capital allocation model (favoring share repurchases over cash dividends) means it structurally under-yields typical income targets.
📊 Strategy Analysis
- • Exceptional global duopoly moat driving elite 59.77% EBIT margins and 10-year revenue growth of 204%.
- • Robust dividend growth with a 16.8% 10-year CAGR, backed by a flawless balance sheet (0.59x Net Debt/EBITDA).
- • Major legacy litigation risks heavily reduced, including the £14B UK Merricks class action resolving for a capped £200M.
⚠ What to Watch
- • Extremely stretched valuation at 33.94x TTM P/E, drastically outside traditional value ranges and offering no margin of safety.
- • Structurally thin 0.56% dividend yield, as the company operates a buyback-first capital model (2.90% net buyback yield vs 18.53% payout).
- • Ongoing structural threats from government-backed real-time payment rails (e.g., FedNow) and renewed merchant litigation over interchange fees.
📊 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.
Analysis date: 2026-10-17
Disclaimer: This information is for educational purposes only. Not financial advice.