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 23th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Mastercard Inc ended up being:
As a business, MA is generating more cash flow than 96.07% of positive cash flow stocks in the Financial Services.
The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately only 10.42% 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 56.77% 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 AON, MDLY, TIPT, PRAA, and FCFS.