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Mastercard (NEOE:MA) Shiller PE Ratio : 58.67 (As of May. 06, 2024)


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What is Mastercard Shiller PE Ratio?

As of today (2024-05-06), Mastercard's current share price is C$28.16. Mastercard's E10 for the quarter that ended in Mar. 2024 was C$0.48. Mastercard's Shiller PE Ratio for today is 58.67.

The historical rank and industry rank for Mastercard's Shiller PE Ratio or its related term are showing as below:

NEOE:MA' s Shiller PE Ratio Range Over the Past 10 Years
Min: 46.84   Med: 66.42   Max: 94.12
Current: 58.26

During the past years, Mastercard's highest Shiller PE Ratio was 94.12. The lowest was 46.84. And the median was 66.42.

NEOE:MA's Shiller PE Ratio is ranked worse than
84.21% of 304 companies
in the Credit Services industry
Industry Median: 15.005 vs NEOE:MA: 58.26

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Mastercard's adjusted earnings per share data for the three months ended in Mar. 2024 was C$0.229. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is C$0.48 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Mastercard Shiller PE Ratio Historical Data

The historical data trend for Mastercard's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Mastercard Shiller PE Ratio Chart

Mastercard Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 81.71 85.44 69.32 55.50 57.74

Mastercard Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 55.58 57.68 55.60 57.74 63.25

Competitive Comparison of Mastercard's Shiller PE Ratio

For the Credit Services subindustry, Mastercard's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Mastercard's Shiller PE Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Mastercard's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where Mastercard's Shiller PE Ratio falls into.



Mastercard Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Mastercard's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=28.16/0.48
=58.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Mastercard's E10 for the quarter that ended in Mar. 2024 is calculated as:

For example, Mastercard's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.229/129.4194*129.4194
=0.229

Current CPI (Mar. 2024) = 129.4194.

Mastercard Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 0.046 100.560 0.059
201409 0.050 100.428 0.064
201412 0.042 99.070 0.055
201503 0.059 99.621 0.077
201506 0.053 100.684 0.068
201509 0.060 100.392 0.077
201512 0.057 99.792 0.074
201603 0.060 100.470 0.077
201606 0.060 101.688 0.076
201609 0.074 101.861 0.094
201612 0.060 101.863 0.076
201703 0.070 102.862 0.088
201706 0.077 103.349 0.096
201709 0.086 104.136 0.107
201712 0.014 104.011 0.017
201803 0.096 105.290 0.118
201806 0.103 106.317 0.125
201809 0.125 106.507 0.152
201812 0.061 105.998 0.074
201903 0.127 107.251 0.153
201906 0.140 108.070 0.168
201909 0.144 108.329 0.172
201912 0.143 108.420 0.171
202003 0.123 108.902 0.146
202006 0.100 108.767 0.119
202009 0.105 109.815 0.124
202012 0.120 109.897 0.141
202103 0.121 111.754 0.140
202106 0.134 114.631 0.151
202109 0.163 115.734 0.182
202112 0.162 117.630 0.178
202203 0.178 121.301 0.190
202206 0.157 125.017 0.163
202209 0.181 125.227 0.187
202212 0.187 125.222 0.193
202303 0.178 127.348 0.181
202306 0.210 128.729 0.211
202309 0.241 129.860 0.240
202312 0.209 129.419 0.209
202403 0.229 129.419 0.229

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Mastercard  (NEOE:MA) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


Mastercard Shiller PE Ratio Related Terms

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Mastercard (NEOE:MA) Business Description

Address
2000 Purchase Street, Purchase, NY, USA, 10577
Mastercard is the second-largest payment processor in the world, having processed close to over $8 trillion in transactions during 2022. Mastercard operates in over 200 countries and processes transactions in over 150 currencies.