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Mastercard Inc. — Beer Score

MA · US Equity · Financial — Payments
$580.00
Market Price (indicative) · Feb 8, 2026
↓ Price vs intrinsic
Reference price only. Not an official exchange feed.
55
/ 100
Fair Pour — Est. 45% Speculation — Est. 45% Speculation
Updated: Feb 8, 2026 16:30 UTC · Filing: 10-K (Jan 2026) · Model: DCF v1.0
Not investment advice · Model-based estimate
Estimated Value (Beer)
$320.00
55%
Est. Speculation Premium (Foam)
$260.00
45%
🍺 55% Est. Fundamental Value 🫧 45% Est. Speculation
Track Score Alerts (Pro) See Model Assumptions ↓

Key Financials

TTM
Revenue$28B
Net Income$13B
Free Cash Flow$12B
P/E Ratio42.0x
EPS (TTM)$13.80
Market Cap$540B
Total Debt$16B
Cash & Equiv.$9B

DCF Valuation

Model Estimate
$320
Est. intrinsic value (DCF model)
vs $580 market price
Our model suggests the current price is ~81% above the estimated intrinsic value. The market may be pricing in growth beyond current fundamentals.
WACC8.5%
Growth Rate (5yr)12%
Terminal Growth3%
Margin of Safety-81%

Model output varies with assumptions (WACC, growth, margins). This is not a price target or investment recommendation.

Score History — 90 Days

Pro
90d Low
48
90d High
68
Zone Changes
2

Mastercard Inc. Stock Valuation Analysis — Beer Score Breakdown

Mastercard Inc.'s Beer Score of 55 means that, according to our DCF model, about half of its current $580 stock price is supported by the company's existing fundamentals — revenue, earnings, free cash flow, and assets. The remaining 45% represents an estimated premium the market places on future growth expectations.

Investors buying at this level are betting that future earnings will grow fast enough to close the gap between price and our model estimated intrinsic value.

How Beer Score Is Calculated for MA

We pull Mastercard Inc.'s latest 10-K and 10-Q filings from SEC EDGAR, run a DCF analysis using a 8.5% WACC and 12% revenue growth rate over 5 years with 3% terminal growth, then compare the resulting model estimate ($320) against the current market price ($580). The Beer Score of 55 represents the ratio: $320 ÷ $580 = 55%. Model output varies with assumptions. Learn more about our methodology →

Important Information

Beer Score is an educational indicator, not investment advice. It measures the model-estimated gap between a stock's current market price and an estimated intrinsic value derived from public financial data. A low Beer Score does not mean "sell" and a high score does not mean "buy." Past Beer Score patterns do not predict future price movements. Model output varies with assumptions (WACC, growth rate, terminal growth, margins).

Prices shown are indicative reference prices for educational purposes only and are not sourced from an official exchange feed. Data sources include SEC EDGAR filings (10-K and 10-Q), indicative market price data, and proprietary DCF models. Scores update daily after market close. For the full ranking of all stocks, visit the Beer Score Heatmap or read Today's Foam Report.

Track MA's Beer Score Over Time

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About This Valuation

Why does Mastercard Inc. have a Beer Score of 62?
Mastercard Inc. (MA) scores 62 because the stock is currently trading roughly 62% above its estimated intrinsic value of $320. With $12B in annual free cash flow and $28B in revenue, the company's fundamentals partially justify the current market price of $518.36 per share. The Beer Score reflects that 62% of the price is backed by estimated fundamental value.
Is MA overvalued or undervalued?
Based on our DCF model, Mastercard Inc. appears moderately overvalued. The estimated intrinsic value of $320 compared to the current price of $518.36 carries a 38% speculation premium. This is a model-based estimate using 8.5% WACC and 12% projected growth — not a buy or sell recommendation. The actual fair value depends on assumptions that may change with new earnings data or market conditions.
What assumptions drive the $320 intrinsic value?
The DCF model uses a 8.5% weighted average cost of capital and projects 12% annual revenue growth over five years. Terminal growth is set at 3%. Starting from $12B in current free cash flow, these assumptions produce an estimated intrinsic value of $320 per share. The model is most sensitive to the growth rate and WACC inputs — small changes in either significantly alter the output.
What could change Mastercard Inc.'s Beer Score?
Mastercard's valuation depends on global payment digitization trends continuing. Cross-border transaction volume growth is the highest-margin revenue line and sensitive to travel disruptions. Regulatory risk from interchange fee caps expanding beyond Europe could compress margins. Real-time payment networks like FedNow and UPI represent long-term disruption to the card network model.

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