US · NYSE · MA
Mastercard (MA) stock analysis: valuation and financials
Consumer Discretionary · Business Services
$598.53 +1.6% Price as of Oct 12, 2026
Wide-moat network with 16.4% FY2025 growth, 58.3% operating margin, 94.2% ROIC and 0.62x net debt/EBITDA; 26x EV/EBIT and reverse DCF implying 11.9% FCF growth make it fully priced.
- Market cap
- $524.3B
- P/E
- —
- EV/Sales
- 15.3x
- FCF yield
- 3.2%
- 52-week range
- $471.55 – $599.86
- Next earnings
- Oct 29, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth63
- Profitability100
- Cash flow97
- Balance sheet69
- Capital allocation100
- Valuation56
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Issuers, acquirers and partners pay network assessments on $10.6T GDV plus switching and services fees; payment network is 59.4% of revenue, value-added services 40.6% and fastest-growing (+22.9% yoy), with a 57.6% operating margin.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $29.8B | $22.2B | $25.1B | $28.2B | $32.8B |
| Revenue growth | +26.4% | -25.5% | +12.9% | +12.2% | +16.4% |
| Operating margin | 33.8% | 55.2% | 55.8% | 55.3% | 57.6% |
| Free cash flow | $9.1B | $10.8B | $11.6B | $14.3B | $17.2B |
| FCF margin | 30.3% | 48.4% | 46.3% | 50.8% | 52.3% |
Amounts in USD · What is free cash flow?
Margins No gross margin is reported (no cost-of-revenue line). Operating margin rose to 57.6% in FY2025 from 55.3% in FY2024, 58.3% TTM and 60.2% in Q2 FY2026 (58.7% a year earlier). Main reason: revenue +16.4% outgrew operating expenses +10%, plus lower litigation charges.
- Cash flow HealthyFY2025 operating cash flow $17.7B versus net income $15.0B (1.2x); TTM operating cash flow $17.4B versus net income $16.3B (1.1x). Cash conversion stays above 1x across periods.
- Debt LowNet debt $13.4B, just 0.62x EBITDA; TTM total debt $24.6B against $11.3B cash. Interest coverage is 27.4x (TTM operating income $20.5B over interest expense $748M).
Balance sheet Leverage · Low
- Cash & short-term investments
- $11.3B
- Total debt
- $24.6B
- Net debt
- $13.4B
- Net debt / EBITDA
- 0.6x
- Interest coverage
- 27.4x
- Current ratio
- 1.1x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution: FY2025 revenue $32.79B, up 16.4% y/y, operating margin 57.6% and ROIC 94.2%, up from 80.8% in FY2024.
- Credibility HighNo quantitative outlook paragraph is present in any of the six earnings releases provided, so guidance-versus-actual cannot be scored; the record is judged on strategy delivery and reported trend.
Valuation range
Implied value per share · Price when researched: $598.53
Each scenario assumes five years of revenue growth, an FCF margin and an exit multiple, discounted to today. The assumptions and sensitivities are in the full report.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
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