Mastercard Inc

MA
About the company

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.

Country: United StatesPrice: $568.26Market Cap: $514.8B

Investment snapshot

31%positive consensus
Scored 37d ago

Positive

5

BUY / PASS

Neutral / negative

2 / 8

NEUTRAL / FAIL

Median fair value

$203.77

-64.1% vs price

Models with upside

1 / 16

Positive margin of safety

Strongest signal

5 of 8 pass — Dreman, Greenblatt and Graham object

Key risk

No clean pass — all 12 investors flag at least one valuation criterion

Framework analysis

VerdictMeaning
BUYPositive purchase signal: the framework's buy requirements are met.
PASSThe company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRALNeither a positive nor negative conclusion. It does not mean to hold an existing position.
FAILThe company does not clear the framework's requirements.
RankedRanked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.
Scored from 10-K37d ago
MetricO'Shaughnessy

Systematic Factor Composite

Lynch

GARP

Buffett

Quality Compounder

Pabrai

Dhandho Framework

Akre

Three-Legged Stool

Schloss

Asset-Value Discipline

Neff

Low-P/E Total Return

Sleep

Scale Economies Shared

Templeton

Global Bargain Hunter

Marks

Risk-Aware Value

Munger

Quality Focus

Ackman

Activist Value

Dreman

Contrarian Value

Piotroski

F-Score

Greenblatt

Magic Formula

Graham

Defensive Value

VerdictFAILFAILPASSFAILBUYFAILFAILBUYNEUTRALFAILPASSNEUTRALFAILBUYNot rankedFAIL
Score
Analysis
Intrinsic ValueN/AN/AN/AN/AN/A
Margin of SafetyN/A-63.8%-178.9%-98.7%-517.7%N/AN/AN/A-209.4%-328.2%-25.8%+1.9%-169.1%N/A-303.2%-908.6%
Data As Of10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-25)10-K (2026-08-24)10-K (2026-08-24)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)10-K (2026-08-23)

Where It Passes

  • Efficiency63% pass✓ 8✗ 3▾

    5 of 8 pass — Dreman, Greenblatt and Graham object

    ROIC (3-5 yr avg)75.5%
    ✓Buffett> 10%
    ROIC - WACC+65.5%
    ✓BuffettPositive (WACC = 10%)
    ROIC (high and growing)FY2023: ROIC=48.9%; FY2024: ROIC=49.8%; FY2025: ROIC=55.8%
    ✓AkreLatest 3 consecutive FYs: ROIC > 15% in each
    Reinvestment Rate x ROIC45.6% (RR=82% x ROIC=55.8%)
    ✓AkreReinvestment Rate * ROIC > 10%
    ROIC (5-year)5/5 years above 12% (latest 55.8%)
    ✓SleepROIC > 12% in a majority of years
    Return on Invested Capital55.8%
    ✓Munger> 15%
    Current Assets / Current Liabilities1.03
    ✗Dreman> 1.5
    Current Ratio Change YoY1.03 -> 1.03
    ✓PiotroskiIncreased YoY
    Revenue / Total Assets Change YoY0.59x -> 0.61x
    ✓PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)N/A (invested capital <= 0)
    ✗Greenblatt> 25%
    Current Ratio1.03
    ✗Graham>= 2.0
  • Cash Flow60% pass✓ 7✗ 5▾

    6 of 10 pass — Oshaughnessy, Pabrai, Ackman +1 more object

    (Operating cash flow - capex) / market capitalization+3.33%; #1874/4487 (top 41.8%)
    ✗OshaughnessyTop 10% of eligible cross-section
    FCF Positive and Growing$17.2B
    ✓LynchPositive and growing
    Free Cash Flow Proxy$15.6B
    ✓BuffettPositive and growing
    P/E or FCF YieldP/E=34.4x, FCF Yield=3.3%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Operating Cash Flow - Capital Expenditures$17.2B
    ✓Neff> $0 (app proxy for a strong fundamental case)
    Positive Operating Cash Flow frequency26/26 years positive
    ✓SleepPositive OCF in >= 70% of available years
    FCF Positive18/18 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    (OCF - CapEx) / Market Cap3.3%
    ✗Ackman>= 4%
    Price / FCF per Share30.0x
    ✗Ackman<= 25
    Price / (CFO / Shares)29.2x
    ✗Dreman< 8x
    Operating Cash Flow$17.6B
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=32.59%, ROA=27.64%
    ✓PiotroskiCFO/Assets > ROA

Where It Falls Short

  • Valuation0% pass✓ 2✗ 24▾

    No clean pass — all 12 investors flag at least one valuation criterion

    Revenue / market capitalization+0.0637; #4390/5203 (top 84.4%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Net income / market capitalization+2.91%; #2247/6251 (top 35.9%)
    ✗OshaughnessyTop 10% of eligible cross-section
    (Operating cash flow - capex) / market capitalization+3.33%; #1874/4487 (top 41.8%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Trailing six-month price return through the evaluation date+13.73%; #1943/6203 (top 31.3%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)1.64
    ✗Lynch< 1.0 (ideally < 0.5)
    P/E or FCF YieldP/E=34.4x, FCF Yield=3.3%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Price / Book Value per Share66.54x
    ✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
    Price / Tangible Book Value per ShareN/A (non-positive TBVPS)
    ✗SchlossP/TBV <= 1.00x (app cutoff)
    Book Value per Share Change+34.4%
    ✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
    Price / Diluted EPS34.4x
    ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
    (EPS CAGR % + Dividend Yield %) / P/E0.63
    ✗Neff> 0.7 (Neff's published traditional edge)
    Price / EPS34.4x
    ✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
    Price vs. Trailing Low114% of trailing low ($499.66)
    ✓Templeton<= 120% of trailing low (certified split-adjusted live window)
    P/B or P/E vs. Historical AverageP/E=34.4x, P/B=66.5x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-169.1% (IV=$211.20 vs Price=$568.26)
    ✗Marks>= 20% below intrinsic value
    Valuation ReasonablenessP/E=34.4x, OE Yield=3.0%
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / FCF per Share30.0x
    ✗Ackman<= 25
    Price / (CFO / Shares)29.2x
    ✗Dreman< 8x
    EBIT / Enterprise Value3.6%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=3.6%, ROC=N/A (invested capital <= 0)
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Price / 3-yr avg EPS40.4x
    ✗Graham<= 15x
    Price-to-Book Ratio66.5x
    ✗Graham<= 1.5x
    P/E x P/B2,685.6
    ✗Graham<= 22.5
  • Valuation models9% pass✓ 1✗ 10▾

    Models split on MA at $568.26 — fair values range $56.34–$579.19

    Lynch fair value$346.87
    ✗Lynch-63.8% margin vs $568.26
    Buffett fair value$203.77
    ✗Buffett-178.9% margin vs $568.26
    Pabrai fair value$286.05
    ✗Pabrai-98.7% margin vs $568.26
    Akre fair value$91.99
    ✗Akre-517.7% margin vs $568.26
    Templeton fair value$183.66
    ✗Templeton-209.4% margin vs $568.26
    Marks fair value$132.70
    ✗Marks-328.2% margin vs $568.26
    Munger fair value$451.76
    ✗Munger-25.8% margin vs $568.26
    Ackman fair value$579.19
    ✓Ackman+1.9% margin vs $568.26
    Dreman fair value$211.20
    ✗Dreman-169.1% margin vs $568.26
    Greenblatt fair value$140.93
    ✗Greenblatt-303.2% margin vs $568.26
    Graham fair value$56.34
    ✗Graham-908.6% margin vs $568.26
  • Debt & Leverage18% pass✓ 2✗ 12▾

    9 of 11 flag MA's debt & leverage — Lynch, Buffett, Akre +6 more

    Total Debt / Equity2.46
    ✗Lynch< 0.33
    Cash - Long-term Debt$-7.7B
    ✗LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 2.46, IC: 27.8x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    Debt Levels2.46
    ✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
    Total Debt / Shareholders' Equity2.46x
    ✗SchlossD/E < 1.00x✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗Dreman< 0.8
    Current Assets / Current Liabilities1.03x
    ✗SchlossCurrent ratio >= 1.50x (app cutoff)✗Dreman> 1.5
    Interest Coverage & Debt/EBITDAIC=27.8x, D/EBITDA=0.9x
    ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Total Debt / Shareholders Equity2.46
    ✗Ackman<= 1.0
    LT Debt / Total Assets Change36.35% -> 33.70%
    ✓PiotroskiDecreased YoY
    LT Debt vs Net Current AssetsLT Debt $18.3B vs NCA $796.0M
    ✗GrahamLT Debt <= Net Current Assets
  • Verdicts38% pass✓ 5✗ 8▾

    Split decision: 8 FAIL · 3 BUY · 2 PASS · 2 NEUTRAL

    Overall verdict
    ✗OshaughnessyFAIL (Rank #610/953 (Top 64.0%))✗LynchFAIL (4/7)✓BuffettPASS (5/9)✗PabraiFAIL (1/3)✓AkreBUY (5/6)✗SchlossFAIL (3/7)✗NeffFAIL (3/6)✓SleepBUY (6/6)•TempletonNEUTRAL (5/8)✗MarksFAIL (3/5)✓MungerPASS (2/4)•AckmanNEUTRAL (6/9)✗DremanFAIL (3/11)✓PiotroskiBUY (F-Score 8)•GreenblattNot ranked✗GrahamFAIL (2/9)
  • Profitability40% pass✓ 18✗ 13▾

    9 of 15 flag MA's profitability — Oshaughnessy, Lynch, Buffett +6 more

    Net income / market capitalization+2.91%; #2247/6251 (top 35.9%)
    ✗OshaughnessyTop 10% of eligible cross-section
    Basic earnings-growth PEG (dividends excluded)1.64
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR21.0%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    ROE193.5%
    ✓Lynch> 15%
    Net Income Positive (10+ years)27/28 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (up to 5-year arithmetic mean)166.0%
    ✓Buffett> 15% arithmetic mean (app rule)
    Operating Margin (10-yr trend)57.6% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$15.6B
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness
    ✗Buffett$1 retained -> > $1 market value created
    Margin of SafetyP/E=34.4x, P/B=66.5x
    ✗PabraiP/B < 1.5 or P/E < 15
    Return on Equity184.5% (3-yr avg)
    ✓AkreROE > 20% (3-year avg)
    Positive Diluted-EPS Years10/10 years positive
    ✓Schloss>= 70% positive over 5-10 observed years (app rule)
    3-5 Year Diluted EPS CAGR21.0% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin 55.8% -> 57.6%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-Year EPS CAGR21.0% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Operating Margin Trend55.8% (2023) -> 57.6% (2025)
    ✓TempletonNon-negative operating-margin trend over 3 years
    Discount to Intrinsic Value-169.1% (IV=$211.20 vs Price=$568.26)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency27/28 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Operating Income / Revenue57.6%
    ✓Ackman>= 15%
    Net Income / Shareholders Equity193.5%
    ✓Ackman>= 15%
    Pre-Tax Income / Revenue56.7%
    ✓Dreman>= 8%
    Net Income / Shareholders' Equity193.5%
    ✓Dreman> 12%
    Net Income / Total Assets27.64%
    ✓PiotroskiROA > 0
    ROA Change YoY26.78% -> 27.64% (delta: +0.86%)
    ✓PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=32.59%, ROA=27.64%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY
    ✗PiotroskiImproved YoY
    EBIT / Enterprise Value3.6%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=3.6%, ROC=N/A (invested capital <= 0)
    ✗GreenblattBoth EY > 10% and ROC > 25%
    Positive EPS (10 years)26/28 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Growth50% pass✓ 8✗ 5▾

    4 of 8 pass — Lynch, Neff, Dreman +1 more object

    Basic earnings-growth PEG (dividends excluded)1.64
    ✗Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR21.0%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthN/A (no inventory)
    ✓LynchInventory growth < Revenue growth
    3-5 Year Diluted EPS CAGR21.0% over 5 years
    ✗Neff7%-20% annualized
    Revenue growth vs. gross and operating margin trendrevenue up, operating margin 55.8% -> 57.6%
    ✓SleepRevenue rising; gross margin flat or falling; operating margin holding
    5-year Revenue CAGR16.5%
    ✓SleepCAGR > 7%
    5-Year EPS CAGR21.0% CAGR over 5 years
    ✓Templeton> 0% (5-year EPS CAGR)
    Positive Net Income Frequency27/28 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    3yr Median Revenue Growth12.9%
    ✓Ackman>= 5%
    Positive EPS Growth Frequency5/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    EPS Growth Direction
    ✗DremanPositive over recent years
    EPS CAGR
    ✗Dreman> 5% annualized
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth

Business & financials

Company Profile

Industry: Business Services
Size: Mega Cap($514.8B)
Revenue: $32.8B+16.4% YoY
Net Income: $15.0B+16.3% YoY

Financial Snapshot

Operating Margin57.6%
Return on Equity193.5%
Debt / Equity2.46
Current Ratio1.03
EPS (Diluted)$16.52+18.9% 1y
Buybacks (1y)$11.7B
Buybacks (2y)$22.7B
Shares Retired2.3% / 4.2% 2y

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Shareholder Return

Fiscal 2025

Retired 2.3% of shares last year, 4.2% over two.

Buybacks
$11.7B
Dividends
$2.8B

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
16.7% = 14.3% + 2.1%
FY23
15.8% = 12.7% + 2.7%
FY24
17.4% = 15.0% + 2.1%
FY25
18.9% = 16.3% + 2.3%
Earnings Fewer shares More shares

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$514.8B$510.3Best.$418.8Best.$352.4Best.$373.2Best.
Revenue$32.8B↑16%$28.2B↑12%$25.1B↑13%$22.2B↑18%$18.9B
Operating Income$18.9B↑21%$15.6B↑11%$14.0B↑14%$12.3B↑22%$10.1B
Net Income$15.0B↑16%$12.9B↑15%$11.2B↑13%$9.9B↑14%$8.7B
EPS (Diluted)$16.52↑19%$13.89↑17%$11.83↑16%$10.22↑17%$8.76
Gross Margin—————
Operating Margin57.6%↑4%55.3%↓1%55.8%↑1%55.2%↑3%53.4%
ROE193.5%↓3%198.5%↑23%161.6%↑2%157.7%↑33%118.8%
Total Debt$19.0B↑4%$18.2B↑16%$15.7B↑12%$14.0B↑1%$13.9B
Shareholders' Equity$7.7B↑19%$6.5B↓6%$6.9B↑10%$6.3B↓14%$7.3B
Current Ratio1.03↑1%1.03↓12%1.17↓1%1.17↓9%1.29
Debt / Equity2.46↓13%2.81↑24%2.26↑2%2.23↑17%1.90
Operating Cash Flow$17.6B↑19%$14.8B↑23%$12.0B↑7%$11.2B↑18%$9.5B
Free Cash Flow$17.2B↑20%$14.3B↑23%$11.6B↑8%$10.8B↑19%$9.1B

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Business Services

MA vs Peers — Financial Grading

Revenue$32.8BTop 25%
Net Income$15.0BTop 25%
ROE193.5%Top 25%
D/E2.46Bottom 25%
Op. Margin57.6%Top 25%
Curr. Ratio1.03Bottom 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroskiDreman
AUTOMATIC DATA PROCESSING INCADP$103.7B$261.80$21.9B$4.4B73.2%0.8224.2%1.054/95/93/70/3F-Score 65/11
ELECTRONIC ARTS INC.EA$52.9B$209.70$7.5B$887.0M13.1%0.2215.4%1.051/94/93/70/3F-Score 66/11
PAYCHEX INCPAYX$35.4B$99.31$6.5B$1.8B47.1%1.2238.6%1.264/96/94/71/3F-Score 76/11
Rubrik, Inc.RBRK$23.4B$113.80$1.3B$348.8M67.1%—-26.2%1.691/90/90/70/3F-Score 42/11
Grab Holdings LtdGRAB$12.7B$3.10$3.4B$268.0M4.0%0.311.9%1.752/92/92/70/3F-Score 44/11
COMMVAULT SYSTEMS INCCVLT$6.1B$148.08$1.2B$70.7M942.8%—6.3%1.951/92/94/70/3F-Score 65/11
ROBERT HALF INC.RHI$3.8B$36.88$5.4B$133.0M10.4%—1.4%1.534/95/91/70/3F-Score 54/11
CSG SYSTEMS INTERNATIONAL INCCSGS$2.3B$80.04$1.2B$55.9M19.7%1.909.7%1.441/93/94/71/3F-Score 64/11