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

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

132% Premium TTM fundamentals · sector averages from covered peers

MA trades at 39.4× TTM earnings — a 132% premium to its Financials sector average of 17.0× in our coverage.

The Numbers

P/E (TTM)

39.4×

Sector avg: 17.0×

P/S (TTM)

17.5×

Sector avg: 6.8×

Market Cap

$549.98B

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)	P/S (TTM)	Market Cap
MA This page	$616.27	39.4×	17.5×	$549.98B
BRK.B Berkshire Hathaway Inc.	$525.88	—	3.0×	$1.13T
V Visa Inc.	$399.62	—	18.6×	$768.56B
BAC Bank of America Corporation	$51.74	14.1×	3.5×	$373.17B
MS Morgan Stanley	$182.10	18.7×	4.2×	$288.26B
GS Goldman Sachs Group Inc.	$891.33	18.1×	4.6×	$267.34B

Is the Premium Justified?

October 11, 2026

Mastercard Inc. commands a significant P/E premium of 37.7x over the financials sector average of 22.5x. This valuation reflects its strong position in the global digital payments industry, which benefits from secular trends like the shift away from cash and increasing e-commerce. Mastercard's asset-light business model, robust network effects, and high operating margins contribute to its consistent revenue growth and profitability. The company is actively investing in and expanding into new payment solutions, including AI-powered commerce, digital identity, and digital assets, which are expected to drive future transaction volumes and revenue. This strategic innovation and perceived resilience justify its premium valuation.

Sources

Frequently Asked Questions

Is MA overvalued or undervalued?

On trailing-twelve-month earnings, MA trades at 39.4x versus a Financials sector average of 17.0x in our coverage — a 132.1% 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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Same question, Financials peers

GS V BAC BRK.B MS JPM