Mastercard Incorporated (MA)

DCF Valuation · Financial Services · Credit Services

Valuation as at 2026-08-14 · see also the S&P 500 Most Undervalued screen

About Mastercard Incorporated

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers products and services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; consumer bill payment services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from an existing account and leverages the credit limit of the funding account; and a platform to optimize supplier payment enablement campaigns for financial institutions.

Source: Yahoo Finance company profile · factual description, not KashVector commentary

Mastercard Incorporated MA

Financial Services · Credit Services

Price
$567.04
Market Cap
$496.73B
Free Cash Flow
$16.96B
Beta
0.73
P/E (TTM)
30.8x
52-Week Range
$464.52–$601.77

Mastercard Incorporated's price & financial trends

Each card is labelled with its own reporting period — quarterly where Yahoo provides it for this market, annual otherwise.

Data as at 2026-08-14

Share price · last 2 years

$567.04 +17% vs 2024-08
S&P 500 $483.34$555.43$561.94$550.53$502.92$567.04 2024-082025-012025-062025-112026-042026-08

Earnings per share (diluted) Per quarter

$4.97 +38% vs Q1 '25
$3.59$4.34$4.52$4.35$4.97Q1 '25Q3 '25Q4 '25Q1 '26Q2 '26

Free cash flow Per quarter

$3.29B -25% vs Q2 '25
$4.39B$5.30B$4.71B$2.66B$3.29BQ2 '25Q3 '25Q4 '25Q1 '26Q2 '26

Dividend per share Per quarter

$0.87 +15% vs Q3 '25
$0.76$0.76$0.87$0.87Q3 '25Q4 '25Q1 '26Q2 '26

Value investing scale · Buffett · Dalio · Graham

Partial Fit
11 / 17 combined score

See the full Buffett, Dalio & Graham breakdown for MA →

Intrinsic value estimate · 5-year forecast

BEAR
$202.66
vs current $567.04
-64.3% ❌ Overvalued
BASE
$351.76
vs current $567.04
-38.0% ❌ Overvalued
BULL
$615.42
vs current $567.04
+8.5% ⚠️ Fairly Valued

Assumptions used in this valuation

Every input below is either fetched live from Yahoo Finance or a documented default — nothing is hidden.

Starting free cash flow
$10.18B
Reported free cash flow (Yahoo), then ×0.6 — the financial-sector haircut the DCF tool and every screen apply
Risk-free rate
4.68% ● LIVE
Live 10-yr govt bond
Beta
0.73
Direct from Yahoo
Equity risk premium
5.50%
Market-specific seed
Cost of debt
5.28%
Synthetic rating AAA, ICR 27.0x
Tax rate
25.00%
Estimated default
Capital structure
E 95% / D 5%
Market cap vs total debt
Projection horizon
5 years
+ terminal value beyond
BearBaseBull
5-yr FCF growth9.1%18.1%27.2%
Terminal growth2.5%2.5%2.5%
WACC (discount rate)9.50%8.50%7.50%

Cost of Equity = Risk-free rate + Beta × Equity Risk Premium = 4.68% + 0.73 × 5.50% = 8.72% · WACC = weighted by 95%/5% capital structure

These numbers come from running Mastercard Incorporated's cash flows through the mechanical DCF formula and assumptions above — not from any view on the news, management, or MA's competitive position. What is DCF?

Want to test your own growth or discount-rate assumptions?Open the full interactive calculator, pre-filled with MA →

More S&P 500 stocks we've valued

Not financial advice. DCF valuations are highly sensitive to assumptions — small changes in growth rate or discount rate produce large swings in output. This is a mechanical calculation, not a recommendation to buy, hold, or sell.

About this valuation

Computed on 2026-08-14 from Yahoo Finance data, using the same engine as the full DCF tool and the S&P 500 Most Undervalued screen. Every figure above is a point-in-time snapshot of that date — change any assumption yourself in the interactive tool for a live one.

Frequently asked questions

Is Mastercard Incorporated (MA) undervalued?

The Base-case DCF estimates intrinsic value at $351.76 vs a price of $567.04 on 2026-08-14 — a -38.0% margin, so the Base case reads overvalued. This is a mechanical output, not advice.