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General information
Mastercard Incorporated provides financial transaction processing services. The Company offers payment processing services for credit and debit cards, electronic cash, automated teller machines, and travelers checks. Mastercard serves customers worldwide.
  • Bad financial results growth rate -17.2% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (11.6%)
  • Dividend yield for the last twelve months 0.5%
  • Free cash flow yield 2.0% (LTM)
  • Share price is 103.2% higher than minimum and 20.4% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (32.8x vs 32.7x)
  • Fundamental value created in LTM (estimate) -14.7%
Key Financials
Ticker: MA
Share price, USD: 291.38
Common stocks: 1 008 863 693

Dividend Yield:  0.5%
FCF Yield LTM: 2.0%
EV / LTM EBITDA: 32.8x
Last revenue growth (y/y):  -14.1%
Last growth of EBITDA (y/y):  -20.3%
Historical revenue growth:  10.2%
Historical growth of EBITDA:  13.0%
Target EV / EBITDA (hist 75% percentile): 32.7x
Fundamental value created in LTM: -14.7%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 293 963
Net Debt ($m): 2 034
EV (Enterprise Value): 295 997
EBITDA LTM ($m): 9 028
EV / LTM EBITDA: 32.8x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
2 818
            EBITDA (last Q)
(2)
2 246
            EBITDA LTM
(3)
9 028
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
4.020
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
-2 299
    
    
            EV
(6)
296 400
        Mult
(7)
(6) / (3)
32.8x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
21.4x
    
    
    Equity+
(10)
(5) * (9)
-49 239
    FCF LTM
(11)
5 900
    
    
Value+
(12)
(10) + (11)
-43 339
Cap
(13)
293 963
    
    
Fundamental value creation
(14)
(12) / (13)
-14.7%

Potential

EBITDA LTM       9 028
 
EBITDA E       8 861
Mult aim       32.7x
 
EV E       289 635
NetDebt corr       1 969
 
Cap E       287 666
Cap       293 963
Growth potential            -2.1%