Mastercard Incorporated (MA) stock is nearly perfect except the valuation

The price of Mastercard Incorporated (NYSE: MA) closed at $477.95 in the last session, up 0.24% from day before closing price of $476.80. In other words, the price has increased by $+1.15 from its previous closing price. On the day, 2309211 shares were traded.

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Ratios:

We take a closer look at MA’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 48.57 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 39.35. For the most recent quarter (mrq), Quick Ratio is recorded 1.17 and its Current Ratio is at 1.17. In the meantime, Its Debt-to-Equity ratio is 2.37 whereas as Long-Term Debt/Eq ratio is at 2.16.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Mar 21 ’24 when Mastercard Foundation sold 200 shares for $487.25 per share. The transaction valued at 97,450 led to the insider holds 97,543,308 shares of the business.

Madabhushi Venkata R sold 16,038 shares of MA for $7,625,295 on Mar 15 ’24. The Chief Marketing Officer now owns 19,205 shares after completing the transaction at $475.45 per share. On Mar 15 ’24, another insider, Miebach Michael, who serves as the President & CEO of the company, sold 7,850 shares for $475.46 each. As a result, the insider received 3,732,365 and left with 82,104 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, MA now has a Market Capitalization of 445.88B and an Enterprise Value of 452.38B. As of this moment, Mastercard’s Price-to-Earnings (P/E) ratio for their current fiscal year is 40.40, and their Forward P/E ratio for the next fiscal year is 28.52. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.09. For the stock, the TTM Price-to-Sale (P/S) ratio is 17.74 while its Price-to-Book (P/B) ratio in mrq is 64.43. Its current Enterprise Value per Revenue stands at 18.02 whereas that against EBITDA is 30.13.

Stock Price History:

Over the past 52 weeks, MA has reached a high of $490.00, while it has fallen to a 52-week low of $352.80. The 50-Day Moving Average of the stock is 463.35, while the 200-Day Moving Average is calculated to be 416.54.

Shares Statistics:

According to the various share statistics, MA traded on average about 2.40M shares per day over the past 3-months and 2.5M shares per day over the past 10 days. A total of 927.00M shares are outstanding, with a floating share count of 826.61M. Insiders hold about 11.39% of the company’s shares, while institutions hold 78.90% stake in the company. Shares short for MA as of Feb 29, 2024 were 4.5M with a Short Ratio of 1.96, compared to 4.91M on Jan 31, 2024. Therefore, it implies a Short% of Shares Outstanding of 0.48% and a Short% of Float of 0.55%.

Dividends & Splits

The forward annual dividend rate for MA is 2.37, which was 2.37 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 0.50%, it implies a Forward Annual Dividend Yield of 0.55%. The stock’s 5-year Average Dividend Yield is 0.51. The current Payout Ratio is 20.03% for MA, which recently paid a dividend on May 09, 2024 with an ex-dividend date of Apr 08, 2024. Stock splits for the company last occurred on Jan 22, 2014 when the company split stock in a 10:1 ratio.

Earnings Estimates

The company has 25 analysts who recommend its stock at the moment. On average, analysts expect EPS of $3.23 for the current quarter, with a high estimate of $3.34 and a low estimate of $3.04, while EPS last year was $2.8. The consensus estimate for the next quarter is $3.59, with high estimates of $3.71 and low estimates of $3.38.

Analysts are recommending an EPS of between $14.81 and $13.61 for the fiscal current year, implying an average EPS of $14.38. EPS for the following year is $16.75, with 35 analysts recommending between $17.42 and $15.21.

Revenue Estimates

According to 21 analysts, the current quarter’s revenue is expected to be $6.34B. It ranges from a high estimate of $6.4B to a low estimate of $6.27B. As of the current estimate, Mastercard Incorporated’s year-ago sales were $5.75B, an estimated increase of 10.20% from the year-ago figure. For the next quarter, 21 analysts are estimating revenue of $6.98B, an increase of 11.40% over than the figure of $10.20% in the same quarter last year. There is a high estimate of $7.11B for the next quarter, whereas the lowest estimate is $6.87B.

A total of 33 analysts have provided revenue estimates for MA’s current fiscal year. The highest revenue estimate was $28.38B, while the lowest revenue estimate was $27.75B, resulting in an average revenue estimate of $28.11B. In the same quarter a year ago, actual revenue was $25.1B, up 12.00% from the average estimate. Based on 33 analysts’ estimates, the company’s revenue will be $31.64B in the next fiscal year. The high estimate is $32.24B and the low estimate is $30.52B. The average revenue growth estimate for next year is up 12.50% from the average revenue estimate for this year.

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