DCF Tool

MA

Mastercard Incorporated – Data Processing, Hosting, and Related Services
Mastercard is a global technology company in the payments industry. Its mission is to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, its innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential. The Company's decency quotient , or DQ, drives its culture and everything it do inside and outside itself. With connections across more than 210 countries and territories, Mastercard is building a sustainable world that unlocks priceless possibilities for all.
Analysis Results
Intrinsic Value $497.60
Latest Price $354.57
Relative Value 29% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 10.2 9.85
2024 11.5 10.8
2025 13.0 11.8
2026 14.8 12.9
2027 16.7 14.2
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 501 billion. This corresponds to a present value of 411 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 59.5 billion. Adding in the terminal value gives a total present value of 471 billion.

There are presently 946.0 million outstanding shares, so the intrinsic value per share is 497.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 16,606,000,000
Current Cash 7,408,000,000
Current Liabilities 14,171,000,000
Current Debt 274,000,000
Non-Cash Working Capital (NCWC) -4,699,000,000
Change in NCWC -1,384,000,000
EBIT 12,620,000,000
Tax Provision 1,802,000,000
Depreciation and Amortization 750,000,000
Capital Expenditure -1,097,000,000
Unlevered Free Cash Flow 8,950,605,864
Current Assets 16,949,000,000
Current Cash 7,894,000,000
Current Liabilities 13,162,000,000
Current Debt 792,000,000
Non-Cash Working Capital (NCWC) -3,315,000,000
Change in NCWC -634,000,000
EBIT 10,176,000,000
Tax Provision 1,620,000,000
Depreciation and Amortization 726,000,000
Capital Expenditure -814,000,000
Unlevered Free Cash Flow 7,854,589,890
Current Assets 19,113,000,000
Current Cash 10,596,000,000
Current Liabilities 11,847,000,000
Current Debt 649,000,000
Non-Cash Working Capital (NCWC) -2,681,000,000
Change in NCWC -3,000,000
EBIT 8,154,000,000
Tax Provision 1,349,000,000
Depreciation and Amortization 580,000,000
Capital Expenditure -708,000,000
Unlevered Free Cash Flow 6,605,506,958
Current Assets 16,902,000,000
Current Cash 7,676,000,000
Current Liabilities 11,904,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,678,000,000
Change in NCWC 622,000,000
EBIT 9,664,000,000
Tax Provision 1,613,000,000
Depreciation and Amortization 522,000,000
Capital Expenditure -728,000,000
Unlevered Free Cash Flow 8,478,105,847
Current Assets 16,171,000,000
Current Cash 8,378,000,000
Current Liabilities 11,593,000,000
Current Debt 500,000,000
Non-Cash Working Capital (NCWC) -3,300,000,000
Change in NCWC -522,000,000
EBIT 8,410,000,000
Tax Provision 1,345,000,000
Depreciation and Amortization 459,000,000
Capital Expenditure -504,000,000
Unlevered Free Cash Flow 6,272,837,590
Current Assets 13,797,000,000
Current Cash 7,782,000,000
Current Liabilities 8,793,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,778,000,000
Change in NCWC -465,000,000
EBIT 6,637,000,000
Tax Provision 2,607,000,000
Depreciation and Amortization 437,000,000
Capital Expenditure -423,000,000
Unlevered Free Cash Flow 3,533,031,738
Current Assets 13,228,000,000
Current Cash 8,335,000,000
Current Liabilities 7,206,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,313,000,000
Change in NCWC -291,000,000
EBIT 5,878,000,000
Tax Provision 1,587,000,000
Depreciation and Amortization 373,000,000
Capital Expenditure -382,000,000
Unlevered Free Cash Flow 3,925,788,522
Current Assets 10,985,000,000
Current Cash 6,738,000,000
Current Liabilities 6,269,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,022,000,000
Change in NCWC -492,000,000
EBIT 5,139,000,000
Tax Provision 1,150,000,000
Depreciation and Amortization 366,000,000
Capital Expenditure -342,000,000
Unlevered Free Cash Flow 3,479,017,345
Current Assets 10,997,000,000
Current Cash 6,305,000,000
Current Liabilities 6,222,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,530,000,000
Change in NCWC -153,000,000
EBIT 5,106,000,000
Tax Provision 1,462,000,000
Depreciation and Amortization 321,000,000
Capital Expenditure -334,000,000
Unlevered Free Cash Flow 3,470,227,997
Current Assets 10,950,000,000
Current Cash 6,295,000,000
Current Liabilities 6,032,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,377,000,000
Change in NCWC -789,000,000
EBIT 4,598,000,000
Tax Provision 1,384,000,000
Depreciation and Amortization 258,000,000
Capital Expenditure -299,000,000
Unlevered Free Cash Flow 2,353,859,555
Current Assets 9,357,000,000
Current Cash 5,039,000,000
Current Liabilities 4,906,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -588,000,000
Change in NCWC 837,000,000
EBIT 3,957,000,000
Tax Provision 1,174,000,000
Depreciation and Amortization 230,000,000
Capital Expenditure -218,000,000
Unlevered Free Cash Flow 3,624,535,605

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