Latest Ratios: P/E Ratio 32.2x · EV/EBITDA 23.3x · ROE 209.9%. (2001–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $470.6B | $512.7B | $488.1B | $403.5B | $337.6B | $356.4B | $359.1B | $305.2B | $197.5B | $162.3B | $113.7B |
| Enterprise Value | $479.0B | $521.1B | $497.9B | $410.6B | $344.7B | $362.9B | $361.6B | $306.7B | $197.2B | $161.7B | $112.1B |
| P/E Ratio → | 32.18 | 34.56 | 37.91 | 36.05 | 33.99 | 41.02 | 56.03 | 37.61 | 33.69 | 41.47 | 27.98 |
| P/S Ratio | 14.35 | 15.63 | 17.33 | 16.08 | 15.18 | 18.88 | 23.47 | 18.07 | 13.21 | 12.98 | 10.55 |
| P/B Ratio | 61.63 | 66.18 | 74.92 | 57.66 | 52.95 | 48.09 | 55.10 | 50.94 | 35.98 | 29.14 | 20.00 |
| P/FCF | 27.83 | 30.31 | 34.12 | 34.76 | 33.44 | 41.21 | 55.11 | 40.93 | 34.54 | 31.62 | 27.71 |
| P/OCF | 27.04 | 29.46 | 33.03 | 33.68 | 30.16 | 37.67 | 49.71 | 37.29 | 31.74 | 29.21 | 25.35 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 15.89 | 17.68 | 16.36 | 15.50 | 19.22 | 23.64 | 18.17 | 13.19 | 12.94 | 10.41 |
| EV / EBITDA | 23.32 | 25.36 | 30.22 | 27.73 | 26.48 | 33.58 | 41.76 | 30.11 | 25.47 | 22.91 | 18.28 |
| EV / EBIT | 24.69 | 27.35 | 31.32 | 28.89 | 28.24 | 33.80 | 44.43 | 30.81 | 26.68 | 24.23 | 19.53 |
| EV / FCF | — | 30.81 | 34.80 | 35.37 | 34.13 | 41.96 | 55.50 | 41.14 | 34.48 | 31.52 | 27.34 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 83.4% | 83.4% | 76.3% | 76.0% | 76.3% | 76.2% | 75.3% | 79.0% | 78.5% | 78.5% | 79.4% |
| Operating Margin | 59.2% | 59.2% | 55.3% | 55.8% | 55.2% | 53.4% | 52.8% | 57.2% | 48.7% | 53.0% | 53.5% |
| Net Profit Margin | 45.6% | 45.6% | 45.7% | 44.6% | 44.7% | 46.0% | 41.9% | 48.1% | 39.2% | 31.3% | 37.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 209.9% | 209.9% | 190.6% | 167.4% | 144.0% | 124.7% | 102.5% | 141.4% | 106.0% | 69.6% | 69.1% |
| ROA | 29.3% | 29.3% | 28.4% | 27.6% | 26.0% | 24.4% | 20.4% | 30.0% | 25.4% | 19.6% | 23.2% |
| ROIC | 56.5% | 56.5% | 49.3% | 48.8% | 44.1% | 37.3% | 36.0% | 55.0% | 47.9% | 45.4% | 42.8% |
| ROCE | 64.4% | 64.4% | 56.6% | 55.2% | 50.0% | 43.6% | 41.4% | 63.2% | 56.4% | 55.2% | 53.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.45 | 2.45 | 2.80 | 2.24 | 2.20 | 1.88 | 1.94 | 1.42 | 1.15 | 0.97 | 0.91 |
| Debt / EBITDA | 0.92 | 0.92 | 1.11 | 1.06 | 1.08 | 1.29 | 1.46 | 0.84 | 0.82 | 0.77 | 0.84 |
| Net Debt / Equity | — | 1.09 | 1.50 | 1.01 | 1.10 | 0.87 | 0.39 | 0.26 | -0.06 | -0.09 | -0.27 |
| Net Debt / EBITDA | 0.41 | 0.41 | 0.59 | 0.48 | 0.54 | 0.60 | 0.30 | 0.15 | -0.04 | -0.07 | -0.25 |
| Debt / FCF | — | 0.50 | 0.68 | 0.61 | 0.69 | 0.75 | 0.39 | 0.21 | -0.06 | -0.10 | -0.38 |
| Interest Coverage | 26.39 | 26.39 | 24.61 | 24.72 | 25.91 | 24.91 | 21.42 | 44.44 | 39.73 | 43.35 | 60.43 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.03 | 1.03 | 1.03 | 1.17 | 1.17 | 1.29 | 1.61 | 1.42 | 1.39 | 1.57 | 1.84 |
| Quick Ratio | 1.03 | 1.03 | 1.03 | 1.17 | 1.17 | 1.29 | 1.61 | 1.42 | 1.39 | 1.57 | 1.84 |
| Cash Ratio | 0.46 | 0.46 | 0.44 | 0.53 | 0.49 | 0.56 | 0.85 | 0.59 | 0.58 | 0.67 | 0.93 |
| Asset Turnover | — | 0.61 | 0.59 | 0.59 | 0.57 | 0.50 | 0.46 | 0.58 | 0.60 | 0.59 | 0.58 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.6% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 18.4% | 18.4% | 19.0% | 19.3% | 19.2% | 20.0% | 25.0% | 16.6% | 17.8% | 24.1% | 20.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 2.9% | 2.6% | 2.8% | 2.9% | 2.4% | 1.8% | 2.7% | 3.0% | 2.4% | 3.6% |
| FCF Yield | 3.6% | 3.3% | 2.9% | 2.9% | 3.0% | 2.4% | 1.8% | 2.4% | 2.9% | 3.2% | 3.6% |
| Buyback Yield | 2.5% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 3.1% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $898M | $927M | $946M | $971M | $992M | $1.0B | $1.0B | $1.0B | $1.1B | $1.1B |
Regulatory interchange fee caps
According to current market data, Mastercard trades at a P/E of 30.21, which, while lower than Visa's 32.96, suggests investors are pricing in sustained double-digit growth and the successful integration of high-margin value-added services into the company's core global payment infrastructure.
The current forward P/E of 25.36 implies that the market expects continued earnings expansion despite potential regulatory headwinds. This valuation premium relative to broader financial services peers appears justified by the company's high operating leverage and the recurring nature of its transaction-based revenue model.
As reported in financial statements, Mastercard maintains a robust operating margin that has consistently ranged between 52% and 61% over the last ten quarters, underscoring the extreme scalability of its network where marginal costs for additional transaction processing remain near zero.
The company's ability to sustain these margins despite competitive pressure to increase rebates and incentives suggests a strong moat. Investors should monitor the growth of these incentives, as any structural shift in the competitive landscape could compress these industry-leading profitability metrics.
Based on reported figures, Mastercard's ROE has trended upward to 53.7% in 2026Q1, though this metric is heavily influenced by an aggressive share repurchase strategy that keeps the equity base artificially constrained relative to the company's significant earnings power.
While the ROE appears exceptionally high, the ROIC, which has fluctuated between 11.3% and 15.1%, provides a more accurate view of the company's ability to generate returns on its actual invested capital. This discrepancy suggests that management's capital allocation is focused more on financial engineering than on pure organic capital reinvestment.
According to recent quarterly filings, Mastercard's DSO has fluctuated between 45 and 59 days, reflecting the inherent timing sensitivities in settlement cycles and the company's reliance on efficient working capital management to maintain its narrow liquidity buffers.
The lack of consistent improvement in the cash conversion cycle suggests that the company's liquidity position remains sensitive to the timing of large-scale incentive payments. This volatility warrants further investigation into how the firm manages its short-term cash obligations during periods of high capital deployment.
As indicated by the balance sheet history, Mastercard's debt-to-equity ratio has remained elevated between 2.09 and 2.82, a trend that appears driven by a commitment to returning cash to shareholders rather than a requirement for funding core operational growth.
While the interest coverage ratio remains healthy, the reliance on debt to fund share repurchases leaves the balance sheet with limited flexibility. Investors should monitor whether this leverage profile becomes a constraint if macroeconomic conditions deteriorate or if regulatory shocks impact cash flow generation.
The debt-to-equity ratio is frequently misapplied to Mastercard, as it obscures the company's unique ability to generate massive free cash flow that can service debt obligations far more easily than a traditional capital-intensive industrial firm with similar leverage levels.
Analysts should instead focus on the interest coverage ratio and the relationship between free cash flow and debt service requirements. Using D/E as a primary risk metric for a high-margin network business often leads to an overestimation of financial distress risk, ignoring the company's structural cash-generative capacity.
Includes 30+ ratios · 25 years · Updated daily
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Quick answers to the most common questions about buying MA stock.
Mastercard Incorporated's current P/E ratio is 32.2x. The historical average is 32.4x. This places it at the 44th percentile of its historical range.
Mastercard Incorporated's current EV/EBITDA is 23.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.8x.
Mastercard Incorporated's return on equity (ROE) is 209.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 69.2%.
Based on historical data, Mastercard Incorporated is trading at a P/E of 32.2x. This is at the 44th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Mastercard Incorporated's current dividend yield is 0.58% with a payout ratio of 18.4%.
Mastercard Incorporated has 83.4% gross margin and 59.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Mastercard Incorporated's Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.