Debt exceeds twice its equity, so financial risk warrants a closer look.
Metrics · D/E ~440% · Current Ratio 1.06
💲Is the price expensive now?
On the expensive side
Even accounting for growth expectations, the price is set high.
Metrics · P/E 31.5 · P/B 89.6
💡The #2 payment network at 60% operating, 46% net margin. Buybacks push ROE to 241% and P/B to 90x. Compounds at +18% EPS CAGR, but the premium is steep.
Compiled from public financial data. Not a recommendation to buy or sell any security. · Source: stockanalysis (margins, debt, liquidity, P/B are TTM) · P/E on the July 31 close, as of 2026-07-31
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 $35.1B with a 59.9% operating margin.
Current Price
$573.10
-0.74%-$4.25· Close 2026-07-31
Analyst Consensus Target (external reference)
$659.16
Avg. of 41 external analysts · stockanalysis (41-analyst consensus, Strong Buy · high $735 / low $550)
P/E (TTM)
31.5x
TTM · forward 27.0x
Operating Margin
59.9%
TTM
Net Margin
46.3%
TTM
ROE
241.2%
TTM · buyback effect
Revenue Growth
+16.0%
TTM YoY
Market Cap
$502.0B
As of 2026-07-31
Economic Moat · Key Business Segments
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 59.9% TTM operating margin. Value-added services (VAS) like cybersecurity and data analytics are a new growth engine (source: company IR, stockanalysis).
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). Q2 2026 (ended Jun 30) brought revenue of $9.28B (+14.1% YoY), operating income of $5.59B (60.2% quarterly margin) and diluted EPS of $4.97 (+22.1%), with earnings outgrowing revenue. VAS and B2B payments are the new growth engines (source: SEC EDGAR 10-K, company IR).
10-Year Growth
Revenue$32.8B · CAGR +13.1%
Operating Income$18.9B · CAGR +14.0%
EPS$16.52 · CAGR +18.1%
10-Year Valuation
P/E (year-end)34.6x · avg 36.7x
ROE209.9% · avg 167.7%
Operating Margin57.6% · avg 54.3%
📊 Annual Data Table (MA) — expand/collapse
Year
Revenue (B$)
Op. Income (B$)
EPS ($)
P/E (x)
ROE (%)
Op. Margin (%)
2016
10.8
5.8
3.69
—
—
53.7
2017
12.5
6.6
3.65
—
—
52.8
2018
15
7.3
5.6
—
—
48.7
2019
16.9
9.7
7.94
—
—
57.4
2020
15.3
8.1
6.37
—
—
52.9
2021
18.9
10.1
8.76
41
125.3
53.4
2022
22.2
12.3
10.22
34
144.6
55.4
2023
25.1
14
11.83
36.1
168
55.8
2024
28.2
15.6
13.89
37.9
190.9
55.3
2025
32.8
18.9
16.52
34.6
209.9
57.6
— = no data for that year/metric (P/E omitted before EPS turned positive)
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 59.9% operating margin is below Visa's (67.2%), but its revenue growth (+16.0% TTM) stays in double digits. Its model differs from American Express, which takes on credit risk (source: stockanalysis, company filings).
Metric
★ MA
V
AXP
Operating Margin
59.9%
67.2%
~25%
P/E (TTM)
31.5
29.6
~18
Revenue YoY Growth
+16.0%
+14.4%
~15%
P/E and operating margin = TTM · Source: stockanalysis, company filings. Mastercard as of 2026-07-31; peers as of 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 90x, P/E 31.5x) assumes continued growth; a slowdown risks a quick re-rating. The P/B is unusually high largely because buybacks have shrunk book equity.Source: stockanalysis
●
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 $573.1 -0.74% · as of 2026-07-31
Q. What are Mastercard's (MA) key value-investing metrics?P/E (TTM) 31.5, operating margin 59.9%, net margin 46.3%, ROE 241.2% (buyback effect), TTM revenue +16.0%, and a 9-year EPS CAGR of +18.1% (source: stockanalysis, company IR, as of 2026-07-31).
Q. ROE is an unusually high 241%—is that okay?Steady buybacks shrink equity, pushing ROE and P/B very high. It reflects strong underlying profitability (59.9% 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.