Debt exceeds twice its equity, so financial risk warrants a closer look.
Metrics · D/E ~282% · Current Ratio 0.98
💲Is the price expensive now?
Not cheap (fair to slightly pricey)
Because it is a good, popular company, those expectations are already priced in.
Metrics · P/E 28.9 · P/B 57.7
💡The #2 payment network—a toll-road model at 59% operating, 46% net margin. Buybacks push ROE to 233%. Compounds at +18% EPS CAGR, but P/B 58x premium is steep.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: TradingView (margins, debt, liquidity, P/B are TTM), as of 2026-06-26
Business Summary · Key Value Metrics
The #2 global payment network, linking 3B+ cards and 100M+ merchants in an oligopoly with Visa. It earns transaction fees plus value-added services (VAS) like data and cybersecurity. TTM revenue $34.0B with a 59.5% operating margin.
Mastercard runs a two-sided network linking 3B+ cards and 100M+ merchants, forming a global oligopoly with Visa (90%+ combined share). Its pure software-and-services model has near-zero marginal cost per transaction, a gross margin around 100%, and a 59.5% TTM operating margin. Value-added services (VAS) like cybersecurity and data analytics are a new growth engine (source: company IR, TradingView).
Network Effects
A two-sided network of 3B+ cards and 100M+ merchants whose value grows exponentially as it scales.
Switching Costs
Replacing bank and merchant payment infrastructure takes years of contracts and system migration.
Intangible Assets
Brand, payment-processing technology, cybersecurity, and data-analytics capabilities.
Cost Advantage
Near-zero marginal cost per transaction, with a gross margin around 100%.
10-Year Financial Trends
Revenue grew at a 9-year CAGR of +13.2%, operating income +14.1%, and diluted EPS +18.1%—EPS outpaced revenue thanks to buybacks. In 2025, revenue was $32.8B and operating income $18.9B (about a 58% operating margin). Quarterly growth is actually accelerating (revenue +15–17%, operating income around +24%), with VAS and B2B payments as new growth engines (source: SEC EDGAR 10-K, company IR).
9-Year CAGR: Revenue +13.2% · Operating Income +14.1% · Net Income Limited data · EPS +18.1%
Source: SEC EDGAR 10-K, stockanalysis, company IR. Fiscal year (December) GAAP basis; EPS is diluted. 2018–2021 revenue corrects source-data errors to SEC net revenue. P/E and ROE cover the last 5 years (stockanalysis); the rest cover 10 years.
Mega-Cap Value Metric Comparison
Mastercard and Visa split the global payment network in an oligopoly. Its 59.5% operating margin is below Visa's (67.2%), but its revenue growth (+17.1% TTM) is accelerating. Its model differs from American Express, which takes on credit risk (source: TradingView, company filings).
Metric
★ MA
V
AXP
Operating Margin
59.5%
67.2%
~25%
P/E (TTM)
28.9
29.6
~18
Revenue YoY Growth
+17.1%
+14.4%
~15%
P/E and operating margin = TTM · Source: TradingView, company filings, 2026-06-26.
Key Risk Factors (from 10-K)
●
Regulation and Fees— EU and U.S. interchange-fee regulation and antitrust probes; new laws could erode the revenue model.Source: Regulators
●
Valuation— A high valuation (P/B 58x) assumes continued growth; a slowdown risks a quick re-rating.Source: TradingView
●
CBDCs and Fintech— Central bank digital currencies could bypass the network long term (5–10 years); fintech competes, though much of it runs on Mastercard's rails.Source: Company 10-K
✦ ValueCrab Dashboard PreviewMA $499.02 +2.07% · as of 2026-06-26
Q. What are Mastercard's (MA) key value-investing metrics?P/E (TTM) 28.9, operating margin 59.5%, net margin 45.8%, ROE 232.6% (buyback effect), TTM revenue +17.1%, and a 9-year EPS CAGR of +18.1% (source: TradingView, company IR, as of 2026-06-26).
Q. ROE is an unusually high 232%—is that okay?Steady buybacks shrink equity, pushing ROE and P/B very high. It reflects strong underlying profitability (59.5% operating margin), not a financial-risk signal.
Q. How does it differ from Visa?Both are pure payment-network oligopolists. Visa leads slightly on operating margin and share, while Mastercard's strengths are faster revenue growth and a rising VAS (value-added services) mix.