What’s Mastercard’s Valuation?



Higher valuations

Mastercard’s (MA) price-to-earnings ratio stood at 29.10x on an NTM (next-12-month) basis. The company has higher valuations in comparison to the peer average of 18.23x. Competitors like Global Payments (GPN), First Data (FDC), and Total System Services (TSS) have price-to-earnings ratios on an NTM basis of 22.33x, 11.64x, and 20.74x, respectively.

The company has adopted various measures to make the payments process easier for consumers, which could be the main reason for higher valuations. Mastercard’s recent steps to offer consumers the ability to make payment via smartphones could attract customers.

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Digital payments are becoming increasingly popular, so Mastercard’s recent steps to capitalize on new opportunities seem to be boosting its valuations.

Mastercard’s price-to-earnings ratio on an LTM (last-12-month) basis stood at 41.70x, while peers (XLF) Global Payments (GPN), First Data (FDC), and Total System Services (TSS) have ratios of 59.37x, 14.13x, and 37.08x, respectively, on an LTM basis.


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