Highly Regarded

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

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

69% Premium TTM fundamentals · sector averages from covered peers

MA trades at 34.1× TTM earnings — a 69% premium to its Financials sector average of 20.2× in our coverage.

The Numbers

P/E (TTM)

34.1×

Sector avg: 20.2×

P/S (TTM)

15.1×

Sector avg: 6.8×

Market Cap

$475.99B

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 $533.36 34.1×
BRK.B $506.66 —
V $357.21 —
BAC $59.89 16.4×
MS $222.08 22.8×
GS $1054.88 21.4×

Is the Premium Justified?

July 6, 2026

Mastercard's P/E ratio of 34.2x, a notable premium to the financial sector average of 23.6x, is supported by its robust growth in digital payments and cross-border transactions. Recent results highlight strong performance, with Q1 2026 net revenue increasing, driven by a 12% rise in payment-network revenue and a 22% growth in value-added services and solutions. Cross-border assessments surged 23% in Q1 2026, reflecting continued strength in global travel and e-commerce. The company's strategic focus on expanding its Mastercard Move platform and diversifying revenue beyond core transaction volumes into higher-margin services like data and security, justifies the market's higher valuation, as it demonstrates strong operating leverage and a resilient business model.

Sources

Frequently Asked Questions

Is MA overvalued or undervalued?
On trailing-twelve-month earnings, MA trades at 34.1x versus a Financials sector average of 20.2x in our coverage — a 68.9% 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

MS BAC JPM GS V BRK.B