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 $415.53
Latest Price $286.48
Relative Value 31% 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 24.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 24.4%, 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)
2022 15.1 13.8
2023 18.8 15.8
2024 23.3 18.0
2025 29.0 20.5
2026 36.1 23.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 518 billion. This corresponds to a present value of 307 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 91.4 billion. Adding in the terminal value gives a total present value of 398 billion.

There are presently 959.0 million outstanding shares, so the intrinsic value per share is 415.53.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 33,898,000,000
Current Cash 15,788,000,000
Current Liabilities 26,324,000,000
Current Debt 1,584,000,000
Non-Cash Working Capital (NCWC) -6,630,000,000
Change in NCWC -3,949,000,000
EBIT 20,352,000,000
Tax Provision 3,240,000,000
Depreciation and Amortization 1,452,000,000
Capital Expenditure -1,628,000,000
Unlevered Free Cash Flow 13,028,179,780
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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