MA · Intrinsic value
Is Mastercard Incorporated (MA) overvalued or undervalued?
Mastercard Incorporated (MA) trades at the delayed market price of $617.42 a share. That price already implies revenue growth of 20.4% a year for 5 years. TickerWorth's fair value is $307.74 a share (101% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 19, 2026 · How these pages are made
Is MA overvalued?
- Fair value
- $307.74
- Market price
- $617.42
- Downside to fair value
- 50.2%
- Verdict
- 101% above fair value
Reverse DCF: Today's price implies revenue growth of 20.4% a year for 5 years; our model assumes 7.0% a year on average over the same horizon.
What is MA's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Financial Services companies in US
Its strongest point: a profitable, high-quality business. Its weakest: looks expensive on the numbers.
- Value · 15 of 100
Cheaper than 15% of Financial Services companies in US
- Price vs worth · 10 of 100
- Quality · 95 of 100
More profitable than 95% of Financial Services companies in US
- Financial health · 30 of 100
Financially stronger than 30% of Financial Services companies in US
- Growth · 59 of 100
Growing faster than 59% of Financial Services companies in US
- Momentum · 84 of 100
Outperformed 84% of Financial Services companies in US over the past year
Confidence: High confidence · Scored
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MA DCF valuation: what the price assumes
At a recent price of $617.42, Mastercard Incorporated (MA) trades 101% above TickerWorth's blended fair value of $307.74 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices MA overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -50.2% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values MA at about $320.68 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Mastercard Incorporated's projected free cash flows at a weighted-average cost of capital (WACC) of 8.6%, with a long-run terminal growth rate of 2.5%. About 76% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 20.4% annual revenue growth for MA. Our base case instead compounds to about 7.0% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, MA's modeled DCF value ranges from about $231.41 to $533.06 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Mastercard Incorporated would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of MA's intrinsic value. Figures update as new filings and prices come in.
Every input behind MA's DCF
| Input | Value |
|---|---|
| Base-year revenueMastercard Incorporated FY2025 10-K (accession 0001141391-26-000013): us-gaap:Revenues, FY2025 full year. | $32,791,000,000 |
| Base EBIT marginMastercard Incorporated FY2025 10-K (accession 0001141391-26-000013): us-gaap:OperatingIncomeLoss 18,897,000,000 / revenue 32,791,000,000 = 57.63%, FY2025. | 57.6% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 10% → 9% → 7% → 6% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.3% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 0.73 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesMastercard Incorporated FY2025 10-K (accession 0001141391-26-000013): WeightedAverageNumberOfDilutedSharesOutstanding = 906,000,000 shares, FY2025. | 906M |
| Market priceDelayed quote · as of 2026-10-19 14:33 UTC | $617.42 |
Change MA's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Mastercard Incorporated do?
What does it do?
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers products and services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; consumer bill payment services; and commercial credit, debit, and prepaid payment products and solutions. It operates in the Credit Services industry (Financial Services sector), headquartered in United States. The company employs roughly 39,800 people.
How does it make money?
The business turns $35.1B in annual revenue into profit. Out of every $100 of sales, about $61 is left as operating profit (operating margin of 61.1%), after a 100% gross margin on the products/services it sells. After all costs, taxes and interest, 46.3% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries heavy debt (4.4× equity), can just cover its short-term bills (1.1× current ratio), and is currently profitable.
Who at MA filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| GENACHOWSKI JULIUS | Director | Open-market sale | $218,377.70 | Form 4 for GENACHOWSKI JULIUS (opens sec.gov in a new tab) | |
| GENACHOWSKI JULIUS | Director | Open-market sale | $216,450.00 | Form 4 for GENACHOWSKI JULIUS (opens sec.gov in a new tab) | |
| GENACHOWSKI JULIUS | Director | Open-market sale | $590.00 | Form 4 for GENACHOWSKI JULIUS (opens sec.gov in a new tab) | |
| Huntsman Jon M Jr | V Chair & Pres Strategic Grwth | Shares withheld (tax) | $98,195.48 | Form 4 for Huntsman Jon M Jr (opens sec.gov in a new tab) | |
| Ling Hai | Chief Financial Officer | Shares withheld (tax) | $48,546.08 | Form 4 for Ling Hai (opens sec.gov in a new tab) | |
| McLaughlin Edward Grunde | President & CTO, MA Tech | Shares withheld (tax) | $54,614.34 | Form 4 for McLaughlin Edward Grunde (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is MA's intrinsic value?
TickerWorth's blended fair value for Mastercard Incorporated (MA) is $307.74 per share, versus a market price of $617.42 (101% above fair value).
Is MA overvalued or undervalued?
On our blended fair value MA looks overvalued vs fair value at $617.42. This is an educational estimate, not advice.
What discount rate is used for MA?
A WACC of 8.6% and a terminal growth rate of 2.5%.
Is Mastercard stock undervalued?
TickerWorth's fair value for Mastercard Incorporated (MA) is $307.74 against a market price of $617.42. Our read: 101% above fair value. This is a model estimate, not investment advice.
Mastercard (MA) DCF valuation and fair value
Our fair value for Mastercard Incorporated (MA) is $307.74, built on a 8.6% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Mastercard stock?
Today's price implies revenue growth of 20.4% a year for 5 years; our model assumes 7.0% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $617.42. A model estimate, not investment advice.
Mastercard (MA) insider trading
The most recent insider filing (SEC Form 4) for Mastercard Incorporated (MA): GENACHOWSKI JULIUS, Director, open-market sale on 2026-10-12. The latest filings are listed on this page. A disclosure, not a signal to trade.
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Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.