Mastercard provides transaction processing, including authorization, clearing, and settlement, as well as delivers related products and services. The company was founded in 1966 and is based in Purchase, New York.
MA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Mastercard Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Mastercard Inc ranked in the 29th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 54%. In terms of the factors that were most noteworthy in this DCF analysis for MA, they are:
The company has produced more trailing twelve month cash flow than 95.49% of its sector Financial Services.
The business' balance sheet reveals debt to be 4% of the company's capital (with equity being the remaining amount). Approximately just 12.15% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
MA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.32% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Mastercard Inc? See SAFT, ARGO, GSHD, MSCI, and BSIG.
Discover Financial Services (NYSE: DFS) is a credit card company, but it's also an online bank with about $112 billion in assets. Discover is a payment processor as well, but unlike Visa and Mastercard, it is also a lender, loaning money through its own bank.
Mastercard, American Express, Visa and Discover are beginning preparations to expand Click to Pay online checkout, a joint venture between the institutions to create a one-click payment method for consumers. Click to Pay “is a service that provides an online checkout that is simple and secure,” said Pablo Fourez, executive vice president of e-commerce at […]