Highly Regarded

Is Mastercard Inc. (MA) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Financials sector peers in our coverage

89% Premium TTM fundamentals · sector averages from covered peers

MA trades at 37.7× TTM earnings — a 89% premium to its Financials sector average of 19.9× in our coverage.

The Numbers

P/E (TTM)

37.7×

Sector avg: 19.9×

P/S (TTM)

16.7×

Sector avg: 7.0×

Market Cap

$525.94B

EPS (TTM): $15.64

Revenue (TTM)

$31.47B

Net income: $14.25B

Financials Peer Comparison

How MA's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
MA This page $589.33 37.7×
BRK.B $504.14 —
V $379.47 —
BAC $61.96 16.9×
MS $213.41 21.9×
GS $1026.48 20.9×

Is the Premium Justified?

August 9, 2026

Mastercard Inc. (MA) trades at a trailing twelve-month (TTM) Price/Earnings (P/E) multiple of 36.0x, representing a notable premium over the Financials sector average of 24.1x. This elevated valuation is largely justified by Mastercard's consistent high growth rate and its position as a leading global payment technology company. The company reported robust Q2 2026 results, with net revenue increasing 11% year-over-year, driven by strong gross dollar volume and cross-border transaction growth. Mastercard benefits from the ongoing global shift towards digital payments and its scalable, asset-light business model, which supports high operating margins. Its continuous investment in value-added services, cybersecurity, and new payment flows further enhances its competitive advantage and growth prospects. The premium reflects investor confidence in Mastercard's ability to sustain above-average earnings growth by capitalizing on expanding digital transaction volumes and innovating within the evolving financial technology landscape, distinguishing it from more traditional financial institutions.

Sources

Frequently Asked Questions

Is MA overvalued or undervalued?
On trailing-twelve-month earnings, MA trades at 37.7x versus a Financials sector average of 19.9x in our coverage — a 89.4% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing MA with its own Financials peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Financials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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