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Mastercard Inc
🇺🇸 MA · NYSE/NASDAQ · US57636Q1040
Bank
USD 565.77 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
31.3
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: 565.77 ÷ 18.18 = 31.3
TTM period through: 2026-06-30
Forward P/E (estimated): 28.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 31.3
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
22.9x
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: 0.59%
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): 0.59%
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 Jul 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Apr 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Jan 2027 | — | USD | 0.87 |
| Forecast* | Quarterly | — | 09 Oct 2026 | — | USD | 0.76 |
| 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 |
| Paid | Quarterly | 16 Sep 2025 | 09 Oct 2025 | 07 Nov 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, wide-moat business with elite profit margins and a stellar dividend growth track record. However, the premium 31.26x P/E valuation and minimal 0.59% yield make it an unattractive entry point for income-focused investors today. Existing holders should maintain their positions, while new buyers should keep it firmly on their WATCH list for a broader market pullback.
Sector Context
Mastercard operates within the Financials/Bank sector as a leading global credit services provider. While categorized as a bank, it functions as a highly scalable, asset-light technology and payment network, making it largely immune to traditional banking risks like deposit flight or significant credit losses.
📊 Strategy Analysis
- • Formidable global duopoly moat resulting in exceptional profitability, highlighted by a 59.63% EBIT margin and 63.04% EBITDA margin.
- • Pristine balance sheet with a highly conservative Net Debt/EBITDA ratio of just 0.59x.
- • Outstanding dividend growth trajectory with a 5-year CAGR of 13.7% and 8 consecutive years of increases.
- • Extremely safe dividend profile supported by a low 17.94% TTM payout ratio, leaving massive room for future increases.
⚠ What to Watch
- • Highly stretched valuation with a TTM P/E of 31.26x, vastly exceeding the strategy's target range of 8-15x and offering zero margin of safety.
- • The 0.59% dividend yield falls drastically short of typical DGI income requirements for immediate cash flow.
- • Long-term structural threats from alternative non-card payment rails (e.g., FedNow, Pix) and regulatory pressures (Credit Card Competition Act).
📊 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: 2026-08-15
Disclaimer: This information is for educational purposes only. Not financial advice.