Stock (Symbol) |
MasterCard (MA) |
Stock Price |
$550 |
Sector |
| Financial |
Data is as of |
| November 10, 2025 |
Expected to Report |
| February 4 |
Company Description |
 MasterCard is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment.
The Company allows users to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus. It provides a range of products and solutions that support payment products, which customers can offer to their cardholders. The Company’s services facilitate transactions on its core network among account holders, merchants, financial institutions, businesses, governments and other organizations in markets globally. Its products include consumer credit, consumer debit, prepaid and commercial credit and debit. It also provides integrated offerings such as cyber and intelligence products, information and analytics services, identity verification services, consulting, loyalty and reward programs, processing and open banking. Source: Refinitiv |
Sharek’s Take |
 Agentic commerce is the next step for MasterCard (MA). This is when advanced AI systems called agents act autonomously and make transactions on behalf of people or businesses. On MasterCard’s end, AI agents are making purchases over its payment network without humans being involved. MasterCard has also made its way into cryptocurrency transactions. On the crypto side, MA has around 130 crypto co-brand programs in the market. Crypto volumes and transactions are growing at a healthy rate. Last quarter, the company posted 13% profit growth on net revenue growth of 17%. Management said that consumer and business spending remains healthy, with balanced unemployment rates and wages continuing to rise faster than inflation. Even with some ongoing geopolitical and economic uncertainty, management said the company remains well positioned for the opportunities ahead, driven by its resilient and diversified business model. MasterCard MA is at one of its lowest valuations in years. The P/E is 29 based on 2026 EPS estimates. The last time the P/E was this low was in 2023 Q4. There is “plump” upside for the stock in 2026 and 2027
MasterCard is a technology company in the global payments industry that connects consumers, financial institutions, merchants, governments, digital partners, businesses and other organizations worldwide, enabling them to use electronic forms of payment instead of cash and checks (source: 2019 Annual Report). It links the account holder, the account holder’s bank, the merchant, and the merchant’s bank. The company derives revenue based on fees for gross dollar volume (GDV) purchases. The company’s operating categories:
MasterCard is a safe stock with high certainty and consistency that I think might give investors mid-to-high teens returns long-term. MA currently has an Estimated Long-Term Growth Rate of 15% a year and a dividend yield of less than 1%. Management buys back billions in stock and pays a dividend that’s increased every year since 2012. In Fiscal 2024, management repurchased $11 billion in stock and paid $2.4 billion in dividends. MA is part of the Conservative Portfolio and Growth Portfolio. |
One Year Chart |
 MA stock has been basing the past year.
What’s new is the P/E is just 29 when we look ahead to 2026 profit estimates. Last quarter, the P/E was 36. The Est. LTG of 15% is around where I think it should be. This figure is the same as last qtr. Qtrly profit growth is projected in the mid-teens for the next few quarters. MA is consistent in beating the Street.
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Earnings Table |
 Last qtr, MasterCard delivered 13% profit growth and beat estimates of 11%. Revenue increased 17% year-over-year, versus estimates of 16%.
Revenue growth was driven by healthy customer and business spending and the performance of its differentiated services. Gross Dollar Volume (GDV) grew 9%, with US GDV increasing 7% (credit up 7%, debit up 7%) and International volumes rose 10% (credit up 10%, debit up 9%). Rebates and incentives rose 16%. Payment network net revenue rose 10%, driven by growth in domestic and cross-border transactions and volume.
Annual Profit Estimates increased this qtr. Qtrly Profit Estimates are for 12%, 15%, 15%, and 16% growth over the next 4 qtrs. Analysts think MA revenue will grow 17% next qtr. |
Fair Value |
 The stock currently has a 33 P/E when we look at 2025 profit estimates. In the One Year Chart section above, I calculated the P/E using 2026 profit estimates, and got 29.
Looking ahead to 2026, if the company earns $19.14 a share and investors give the stock a P/E of 35, the shares will go to $670, around 22% higher than the recent quote of $550. For 2027, the upside is 42%.
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Bottom Line |
 MasterCard (MA) stock has a lot of great traits, including a double-digit growth rate, a rising dividend, a stock buyback program and a stable business that churns out growth.
Notice in this chart profit growth has been 17% a year this past decade. That’s consistent high-teens growth. I believe the stock can keep pace with the company’s profit growth. MA jumps from 12th to 2nd in the Conservative Growth Portfolio Power Rankings. The stock bolts from 32nd to 17th in the Growth Portfolio Power Rankings. The stock was ranked last in this portfolio last qtr due to -5% upside to my 2025 Fair Value. I will add MA to the Aggressive Growth Portfolio where it will rank 13th in the Power Rankings. |
Power Rankings |
Growth Stock Portfolio
17 of 32Aggressive Growth Portfolio 13 of 15Conservative Growth Portfolio 2 of 19 |
