I think Mastercard Inc ($MA) is a Possible Buy. It currently should be $325. Confident Investor Rating: Good

 

Company name Mastercard Inc
Stock ticker MA
Live stock price [stckqut]MA[/stckqut]
P/E compared to competitors Good

 

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Good
EPS growth Good
P/E growth Fair
EBITDA growth Good
Price growth Good
R&D growth Poor
Income growth Good
Assets growth Good
Return on Assets growth Poor
Income / Rev growth Poor
TWCA Plus Good
Standard TWCA Good
Weighted ann. stock price increase Good

 

ANALYSIS

Confident Investor Rating Good
Target stock price (TWCA growth scenario) $364.76
Target stock price (averages with growth) $1228.81
Target stock price (averages with no growth) $1092.35
Target stock price (manual assumptions) $314.49

 

The following company description is from Reuters: https://finance.yahoo.com/quote/ma/profile?p=ma

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company offers integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. It also provides value-added products and services comprising safety and security products, loyalty and reward programs, information and analytics services, consulting services, and issuer and acquirer processing services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. Mastercard Incorporated has strategic partnerships with Network International to develop electronic payments in Africa and the Middle East; and R3 to develop and pilot a new blockchain-enabled cross-border payments solution, as well as a strategic alliance with Finexio. The company was founded in 1966 and is headquartered in Purchase, New York.

 

Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Mastercard Inc as long as the indicators that I describe in my book The Confident Investor are favorable.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Mastercard Inc calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $297.79
  • Growth: 0.12
  • Current EPS (TTM): $8
  • P/E: 35.9246972268013
  • Future EPS Calc: $14.09
  • Future Stock Price Calc: $506.49
  • Target stock price: $314.49

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I hope that this makes you a Confident Investor.

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