Intrinsic value of Mastercard - MA

Previous Close

$197.74

  Intrinsic Value

$225.35

stock screener

  Rating & Target

hold

+14%

Previous close

$197.74

 
Intrinsic value

$225.35

 
Up/down potential

+14%

 
Rating

hold

We calculate the intrinsic value of MA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 202.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  20.00
  18.50
  17.15
  15.94
  14.84
  13.86
  12.97
  12.17
  11.46
  10.81
  10.23
  9.71
  9.24
  8.81
  8.43
  8.09
  7.78
  7.50
  7.25
  7.03
  6.82
  6.64
  6.48
  6.33
  6.20
  6.08
  5.97
  5.87
  5.79
  5.71
Revenue, $m
  14,996
  17,771
  20,818
  24,136
  27,718
  31,559
  35,653
  39,993
  44,575
  49,394
  54,447
  59,733
  65,250
  71,000
  76,987
  83,214
  89,687
  96,415
  103,407
  110,672
  118,224
  126,076
  134,242
  142,739
  151,584
  160,795
  170,393
  180,399
  190,835
  201,725
Variable operating expenses, $m
  6,890
  8,088
  9,404
  10,836
  12,383
  14,041
  15,809
  17,683
  19,661
  21,742
  23,508
  25,790
  28,172
  30,655
  33,239
  35,928
  38,723
  41,627
  44,646
  47,783
  51,044
  54,433
  57,959
  61,628
  65,446
  69,424
  73,568
  77,888
  82,393
  87,095
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  6,890
  8,088
  9,404
  10,836
  12,383
  14,041
  15,809
  17,683
  19,661
  21,742
  23,508
  25,790
  28,172
  30,655
  33,239
  35,928
  38,723
  41,627
  44,646
  47,783
  51,044
  54,433
  57,959
  61,628
  65,446
  69,424
  73,568
  77,888
  82,393
  87,095
Operating income, $m
  8,106
  9,683
  11,415
  13,300
  15,335
  17,518
  19,844
  22,311
  24,914
  27,653
  30,940
  33,943
  37,078
  40,346
  43,748
  47,286
  50,965
  54,788
  58,761
  62,889
  67,181
  71,642
  76,283
  81,111
  86,137
  91,371
  96,826
  102,511
  108,442
  114,630
EBITDA, $m
  8,833
  10,467
  12,262
  14,216
  16,326
  18,588
  20,999
  23,556
  26,254
  29,093
  32,069
  35,182
  38,432
  41,819
  45,345
  49,012
  52,825
  56,788
  60,906
  65,185
  69,633
  74,258
  79,068
  84,072
  89,282
  94,707
  100,360
  106,254
  112,400
  118,815
Interest expense (income), $m
  74
  293
  464
  654
  863
  1,090
  1,335
  1,599
  1,879
  2,176
  2,490
  2,820
  3,167
  3,529
  3,907
  4,301
  4,711
  5,137
  5,581
  6,042
  6,521
  7,019
  7,536
  8,074
  8,633
  9,215
  9,821
  10,453
  11,110
  11,796
  12,511
Earnings before tax, $m
  7,813
  9,219
  10,761
  12,437
  14,245
  16,182
  18,246
  20,432
  22,738
  25,162
  28,119
  30,776
  33,549
  36,439
  39,447
  42,575
  45,827
  49,207
  52,719
  56,369
  60,162
  64,106
  68,209
  72,478
  76,922
  81,550
  86,373
  91,401
  96,646
  102,119
Tax expense, $m
  2,110
  2,489
  2,905
  3,358
  3,846
  4,369
  4,926
  5,517
  6,139
  6,794
  7,592
  8,310
  9,058
  9,839
  10,651
  11,495
  12,373
  13,286
  14,234
  15,219
  16,244
  17,309
  18,416
  19,569
  20,769
  22,019
  23,321
  24,678
  26,094
  27,572
Net income, $m
  5,704
  6,730
  7,855
  9,079
  10,399
  11,813
  13,319
  14,915
  16,599
  18,369
  20,527
  22,467
  24,491
  26,601
  28,796
  31,080
  33,454
  35,921
  38,485
  41,149
  43,918
  46,798
  49,792
  52,909
  56,153
  59,532
  63,052
  66,723
  70,552
  74,547

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  25,504
  30,222
  35,405
  41,047
  47,139
  53,672
  60,634
  68,016
  75,808
  84,004
  92,598
  101,586
  110,969
  120,749
  130,930
  141,520
  152,529
  163,971
  175,862
  188,218
  201,062
  214,415
  228,303
  242,753
  257,795
  273,461
  289,784
  306,801
  324,550
  343,070
Adjusted assets (=assets-cash), $m
  25,504
  30,222
  35,405
  41,047
  47,139
  53,672
  60,634
  68,016
  75,808
  84,004
  92,598
  101,586
  110,969
  120,749
  130,930
  141,520
  152,529
  163,971
  175,862
  188,218
  201,062
  214,415
  228,303
  242,753
  257,795
  273,461
  289,784
  306,801
  324,550
  343,070
Revenue / Adjusted assets
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
  0.588
Average production assets, $m
  2,924
  3,465
  4,060
  4,706
  5,405
  6,154
  6,952
  7,799
  8,692
  9,632
  10,617
  11,648
  12,724
  13,845
  15,012
  16,227
  17,489
  18,801
  20,164
  21,581
  23,054
  24,585
  26,177
  27,834
  29,559
  31,355
  33,227
  35,178
  37,213
  39,336
Working capital, $m
  -4,634
  -5,491
  -6,433
  -7,458
  -8,565
  -9,752
  -11,017
  -12,358
  -13,774
  -15,263
  -16,824
  -18,457
  -20,162
  -21,939
  -23,789
  -25,713
  -27,713
  -29,792
  -31,953
  -34,198
  -36,531
  -38,957
  -41,481
  -44,106
  -46,839
  -49,686
  -52,651
  -55,743
  -58,968
  -62,333
Total debt, $m
  8,589
  12,109
  15,975
  20,184
  24,729
  29,602
  34,796
  40,303
  46,116
  52,230
  58,641
  65,346
  72,346
  79,642
  87,237
  95,137
  103,350
  111,886
  120,756
  129,974
  139,555
  149,516
  159,877
  170,657
  181,878
  193,565
  205,742
  218,437
  231,677
  245,493
Total liabilities, $m
  19,026
  22,546
  26,412
  30,621
  35,166
  40,039
  45,233
  50,740
  56,553
  62,667
  69,078
  75,783
  82,783
  90,079
  97,674
  105,574
  113,787
  122,323
  131,193
  140,411
  149,992
  159,953
  170,314
  181,094
  192,315
  204,002
  216,179
  228,874
  242,114
  255,930
Total equity, $m
  6,478
  7,676
  8,993
  10,426
  11,973
  13,633
  15,401
  17,276
  19,255
  21,337
  23,520
  25,803
  28,186
  30,670
  33,256
  35,946
  38,742
  41,649
  44,669
  47,807
  51,070
  54,461
  57,989
  61,659
  65,480
  69,459
  73,605
  77,927
  82,436
  87,140
Total liabilities and equity, $m
  25,504
  30,222
  35,405
  41,047
  47,139
  53,672
  60,634
  68,016
  75,808
  84,004
  92,598
  101,586
  110,969
  120,749
  130,930
  141,520
  152,529
  163,972
  175,862
  188,218
  201,062
  214,414
  228,303
  242,753
  257,795
  273,461
  289,784
  306,801
  324,550
  343,070
Debt-to-equity ratio
  1.330
  1.580
  1.780
  1.940
  2.070
  2.170
  2.260
  2.330
  2.390
  2.450
  2.490
  2.530
  2.570
  2.600
  2.620
  2.650
  2.670
  2.690
  2.700
  2.720
  2.730
  2.750
  2.760
  2.770
  2.780
  2.790
  2.800
  2.800
  2.810
  2.820
Adjusted equity ratio
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254
  0.254

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  5,704
  6,730
  7,855
  9,079
  10,399
  11,813
  13,319
  14,915
  16,599
  18,369
  20,527
  22,467
  24,491
  26,601
  28,796
  31,080
  33,454
  35,921
  38,485
  41,149
  43,918
  46,798
  49,792
  52,909
  56,153
  59,532
  63,052
  66,723
  70,552
  74,547
Depreciation, amort., depletion, $m
  727
  784
  847
  916
  990
  1,070
  1,155
  1,245
  1,340
  1,440
  1,129
  1,239
  1,354
  1,473
  1,597
  1,726
  1,861
  2,000
  2,145
  2,296
  2,453
  2,615
  2,785
  2,961
  3,145
  3,336
  3,535
  3,742
  3,959
  4,185
Funds from operations, $m
  6,430
  7,514
  8,703
  9,995
  11,390
  12,883
  14,474
  16,160
  17,939
  19,809
  21,657
  23,706
  25,845
  28,073
  30,393
  32,806
  35,314
  37,921
  40,630
  43,445
  46,371
  49,413
  52,577
  55,870
  59,297
  62,867
  66,587
  70,465
  74,510
  78,732
Change in working capital, $m
  -772
  -857
  -942
  -1,025
  -1,107
  -1,187
  -1,265
  -1,341
  -1,416
  -1,489
  -1,561
  -1,633
  -1,705
  -1,777
  -1,850
  -1,924
  -2,000
  -2,079
  -2,160
  -2,245
  -2,334
  -2,426
  -2,523
  -2,626
  -2,733
  -2,846
  -2,966
  -3,092
  -3,225
  -3,365
Cash from operations, $m
  7,203
  8,371
  9,644
  11,020
  12,496
  14,070
  15,739
  17,501
  19,355
  21,298
  23,218
  25,339
  27,549
  29,850
  32,243
  34,730
  37,315
  40,000
  42,790
  45,690
  48,704
  51,839
  55,101
  58,495
  62,030
  65,714
  69,553
  73,557
  77,735
  82,097
Maintenance CAPEX, $m
  -259
  -311
  -369
  -432
  -501
  -575
  -655
  -740
  -830
  -925
  -1,025
  -1,129
  -1,239
  -1,354
  -1,473
  -1,597
  -1,726
  -1,861
  -2,000
  -2,145
  -2,296
  -2,453
  -2,615
  -2,785
  -2,961
  -3,145
  -3,336
  -3,535
  -3,742
  -3,959
New CAPEX, $m
  -485
  -541
  -594
  -647
  -699
  -749
  -798
  -846
  -893
  -940
  -985
  -1,031
  -1,076
  -1,121
  -1,167
  -1,214
  -1,262
  -1,312
  -1,363
  -1,417
  -1,473
  -1,531
  -1,592
  -1,657
  -1,725
  -1,796
  -1,872
  -1,951
  -2,035
  -2,124
Cash from investing activities, $m
  -744
  -852
  -963
  -1,079
  -1,200
  -1,324
  -1,453
  -1,586
  -1,723
  -1,865
  -2,010
  -2,160
  -2,315
  -2,475
  -2,640
  -2,811
  -2,988
  -3,173
  -3,363
  -3,562
  -3,769
  -3,984
  -4,207
  -4,442
  -4,686
  -4,941
  -5,208
  -5,486
  -5,777
  -6,083
Free cash flow, $m
  6,458
  7,519
  8,681
  9,941
  11,297
  12,746
  14,286
  15,915
  17,632
  19,433
  21,208
  23,179
  25,234
  27,375
  29,603
  31,919
  34,326
  36,828
  39,427
  42,128
  44,936
  47,856
  50,893
  54,054
  57,345
  60,773
  64,346
  68,071
  71,958
  76,015
Issuance/(repayment) of debt, $m
  3,165
  3,520
  3,867
  4,209
  4,545
  4,873
  5,194
  5,507
  5,813
  6,114
  6,411
  6,705
  7,000
  7,296
  7,595
  7,900
  8,213
  8,536
  8,870
  9,218
  9,581
  9,961
  10,360
  10,780
  11,221
  11,687
  12,177
  12,695
  13,240
  13,816
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,165
  3,520
  3,867
  4,209
  4,545
  4,873
  5,194
  5,507
  5,813
  6,114
  6,411
  6,705
  7,000
  7,296
  7,595
  7,900
  8,213
  8,536
  8,870
  9,218
  9,581
  9,961
  10,360
  10,780
  11,221
  11,687
  12,177
  12,695
  13,240
  13,816
Total cash flow (excl. dividends), $m
  9,623
  11,039
  12,548
  14,150
  15,842
  17,619
  19,480
  21,422
  23,445
  25,548
  27,619
  29,884
  32,234
  34,671
  37,198
  39,819
  42,539
  45,363
  48,297
  51,346
  54,517
  57,817
  61,253
  64,833
  68,566
  72,459
  76,523
  80,766
  85,198
  89,831
Retained Cash Flow (-), $m
  -1,084
  -1,198
  -1,317
  -1,433
  -1,547
  -1,659
  -1,768
  -1,875
  -1,979
  -2,082
  -2,183
  -2,283
  -2,383
  -2,484
  -2,586
  -2,690
  -2,796
  -2,906
  -3,020
  -3,139
  -3,262
  -3,392
  -3,528
  -3,670
  -3,821
  -3,979
  -4,146
  -4,322
  -4,508
  -4,704
Prev. year cash balance distribution, $m
  74
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  8,613
  9,840
  11,232
  12,717
  14,294
  15,960
  17,712
  19,547
  21,466
  23,466
  25,436
  27,601
  29,851
  32,187
  34,612
  37,129
  39,743
  42,457
  45,277
  48,207
  51,255
  54,425
  57,726
  61,163
  64,745
  68,480
  72,377
  76,443
  80,690
  85,127
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  8,258
  9,009
  9,774
  10,471
  11,080
  11,583
  11,966
  12,218
  12,331
  12,302
  12,079
  11,778
  11,350
  10,806
  10,161
  9,435
  8,647
  7,819
  6,971
  6,126
  5,301
  4,516
  3,783
  3,115
  2,519
  1,998
  1,553
  1,183
  881
  641
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

MasterCard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company operates through Payment Solutions segment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus. The Company provides a range of products and solutions that support payment products, which customers can offer to their cardholders. The Company's services facilitate transactions on its network among cardholders, merchants, financial institutions and governments. The Company's products include consumer credit and charge, commercial, debit, prepaid, commercial and digital. The Company's consumer credit and charge offers a range of programs that enables issuers to provide consumers with cards allowing users to defer payment.

FINANCIAL RATIOS  of  Mastercard (MA)

Valuation Ratios
P/E Ratio 52.7
Price to Sales 19.8
Price to Book 37.8
Price to Tangible Book
Price to Cash Flow 47.7
Price to Free Cash Flow 52.1
Growth Rates
Sales Growth Rate 11.5%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 11.7%
Cap. Spend. - 3 Yr. Gr. Rate 5%
Financial Strength
Quick Ratio NaN
Current Ratio 0.3
LT Debt to Equity 91.6%
Total Debt to Equity 91.6%
Interest Coverage 77
Management Effectiveness
Return On Assets 23.5%
Ret/ On Assets - 3 Yr. Avg. 24.2%
Return On Total Capital 40.3%
Ret/ On T. Cap. - 3 Yr. Avg. 43.2%
Return On Equity 69.5%
Return On Equity - 3 Yr. Avg. 59.9%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 56.5%
EBITDA Margin - 3 Yr. Avg. 56.5%
Operating Margin 53.5%
Oper. Margin - 3 Yr. Avg. 53.4%
Pre-Tax Margin 52.4%
Pre-Tax Margin - 3 Yr. Avg. 52.5%
Net Profit Margin 37.7%
Net Profit Margin - 3 Yr. Avg. 38.5%
Effective Tax Rate 28.1%
Eff/ Tax Rate - 3 Yr. Avg. 26.7%
Payout Ratio 20.6%

MA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MA stock intrinsic value calculation we used $12497 million for the last fiscal year's total revenue generated by Mastercard. The default revenue input number comes from 0001 income statement of Mastercard. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MA stock valuation model: a) initial revenue growth rate of 20% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for MA is calculated based on our internal credit rating of Mastercard, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Mastercard.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MA stock the variable cost ratio is equal to 46.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Mastercard.

Corporate tax rate of 27% is the nominal tax rate for Mastercard. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MA stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MA are equal to 19.5%.

Life of production assets of 9.4 years is the average useful life of capital assets used in Mastercard operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MA is equal to -30.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $5468 million for Mastercard - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1025.06 million for Mastercard is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Mastercard at the current share price and the inputted number of shares is $202.7 billion.

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COMPANY NEWS

▶ Mastercard Rises 3%   [12:18PM  Investing.com]
▶ Better Buy: Mastercard vs. American Express   [Dec-09-18 11:30AM  Motley Fool]
▶ ESG Investing Boosts This Calvert Fund's Returns, Dampens Its Volatility   [Dec-07-18 06:28PM  Investor's Business Daily]
▶ Mastercard Falls 3%   [02:42PM  Investing.com]
▶ Mastercard- Ready to Charge   [05:00AM  MoneyShow]
▶ [$$] For Walmart and Target, the Fed Holds the Keys to Faster Payments   [Dec-06-18 08:39PM  The Wall Street Journal]
▶ 4 Vital Mastercard Metrics to Watch in 2019   [Dec-05-18 05:20PM  Motley Fool]
▶ [$$] Mastercard, Visa Propose Cutting Fees for European Merchants   [Dec-04-18 07:53PM  The Wall Street Journal]
▶ Mastercard Falls 3%   [02:26PM  Investing.com]
▶ 3 Financial Stocks to Buy While Theyre Cheap   [01:36PM  InvestorPlace]
▶ Mastercard Rises 3%   [11:50AM  Investing.com]
▶ MoffettNathanson: meet the payment MVPs   [01:31PM  CNBC Videos]
▶ Birmingham fintech company partners with Mastercard   [12:37PM  American City Business Journals]
▶ The 7 Best ETFs to Avoid the Tech Bloodbath   [12:08PM  InvestorPlace]
▶ 3 Great Stocks for Low-Risk Investors   [08:15AM  Motley Fool]
▶ Mastercard Rises 3%   [Nov-28-18 03:26PM  Investing.com]
▶ Why Mastercard Stock Popped 5%   [Nov-26-18 07:42PM  Motley Fool]
▶ Mastercard Rises 3%   [12:42PM  Investing.com]
▶ [$$] Wait for a Better Bargain on Visa, Mastercard Shares   [Nov-25-18 07:39PM  The Wall Street Journal]
▶ Why Mastercard Stock Dropped 5%   [Nov-19-18 03:34PM  Motley Fool]
▶ Mastercard Falls 3%   [12:36PM  Investing.com]
▶ 3 Hot Stocks to Buy in November   [Nov-18-18 10:34AM  Motley Fool]
▶ The average retailer-branded credit card has a ridiculously high APR   [Nov-15-18 10:55AM  Yahoo Finance Video]
▶ Altamonte Springs one of 16 cities to take part in Mastercard program   [09:23AM  American City Business Journals]
▶ PayPal named a 'top pick' at Barclays   [Nov-14-18 09:00PM  MarketWatch]
▶ Give your student loans credit for your better grades   [02:15PM  Yahoo Finance Video]
▶ Meet Pepper the robot   [02:15PM  Yahoo Finance Video]
▶ Mastercard Falls 3%   [01:02PM  Investing.com]
▶ Weekly Top Insider Buys Highlight for the Week of Nov. 9   [Nov-11-18 10:44AM  GuruFocus.com]
▶ These Stocks Are Sitting On A $1 Trillion Opportunity In Payments   [Nov-10-18 11:33AM  Investor's Business Daily]
▶ AmEx wins China approval to clear card payments   [Nov-09-18 10:23AM  Reuters]

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