Mastercard: Still Not A Bargain At 35 Times Earnings

Summary:

  • Although top line growth slowed down, Mastercard is still reporting high growth rates for revenue as well as earnings per share.
  • The three strategic priorities of Mastercard in the years to come are expanding in payments, extending the services Mastercard is offering additionally and finally embracing new networks.
  • The stock could be fairly valued right now, but I would still wait for cheaper prices.

Mastercard Credit Card

jbk_photography

In my last article about Mastercard (NYSE:MA), I argued that the stock is still overvalued, and I see some downside risk for the stock. And as the stock is trading for almost the same price as during my

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Data by YCharts

Mastercard is still reporting high growth rates in Q4/22

Mastercard Q4/22 Presentation

Mastercard: Q4/22 Revenue Breakdown

Mastercard Q4/22 Presentation

Mastercard: Switched transactions increased 8% and cards grew 5%

Mastercard Q4/22 Presentation

Significant opportunity in different segments

Mastercard Investment Community Meeting

Mastercard: The evolution of services

Mastercard Investment Community Meeting

Mastercard is leveraging the differentiated data assets and network

Mastercard Investment Community Meeting

3-year CAGR

5-year CAGR

10-year CAGR

Revenue

9.62%

12.22%

11.64%

Operating Income

9.48%

13.54%

12.31%

Earnings per share

8.78%

22.87%

16.63%

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Data by YCharts

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Data by YCharts

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Data by YCharts


Disclosure: I/we have a beneficial long position in the shares of PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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