Added to YB: 2026-04-28
Pitch date: 2026-04-25
MA [bullish]
Mastercard Incorporated
+1.13%
current return
Author Info
HatedMoats identifies hated moats. I buy companies when the market panics. Contrarian investor focused on quality, value & long-term growth. Sign up for the newsletter.
Company Info
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.
Market Cap
$449.6B
Pitch Price
$500.76
Price Target
806.00 (+60%)
Dividend
0.69%
EV/EBITDA
22.31
P/E
30.52
EV/Sales
13.98
Sector
Financial Services
Category
value
Mastercard: DCF Valuation
MA: DCF yields $568.5 fair value (+12.8% upside from $504). Base case: 8.06% WACC, 3% terminal growth, EBIT margin expanding 57.4%→60.5% by 2035, rev $32.8B→$66.4B (7.3% CAGR). Asset-light toll-road model w/ high incremental ROIC >25%, strong cash conversion. Bull case $806 (+59.9%) on 7.15% WACC, 62% margin, stronger VAS growth. Bear $405 (-19.7%) on regulatory/pricing pressure. 11.3% MoS = modestly undervalued. Risks: litigation, interchange scrutiny, rebate pressure. Selling $480 puts.
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