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Mastercard (BSP:MSCD34) Cyclically Adjusted Price-to-FCF : 63.71 (As of Jun. 10, 2024)


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What is Mastercard Cyclically Adjusted Price-to-FCF?

As of today (2024-06-10), Mastercard's current share price is R$78.36. Mastercard's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was R$1.23. Mastercard's Cyclically Adjusted Price-to-FCF for today is 63.71.

The historical rank and industry rank for Mastercard's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

BSP:MSCD34' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 45.57   Med: 60.05   Max: 89.74
Current: 59.09

During the past years, Mastercard's highest Cyclically Adjusted Price-to-FCF was 89.74. The lowest was 45.57. And the median was 60.05.

BSP:MSCD34's Cyclically Adjusted Price-to-FCF is ranked worse than
88.46% of 104 companies
in the Credit Services industry
Industry Median: 9.34 vs BSP:MSCD34: 59.09

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Mastercard's adjusted free cash flow per share data for the three months ended in Mar. 2024 was R$0.222. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is R$1.23 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Mastercard Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Mastercard's Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Chart

Mastercard Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 78.33 81.59 67.42 54.00 57.66

Mastercard Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cyclically Adjusted Price-to-FCF 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 54.85 57.13 55.57 57.66 63.26

Competitive Comparison of Mastercard's Cyclically Adjusted Price-to-FCF

For the Credit Services subindustry, Mastercard's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF 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 Cyclically Adjusted Price-to-FCF Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Mastercard's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Mastercard's Cyclically Adjusted Price-to-FCF falls into.



Mastercard Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Mastercard's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=78.36/1.23
=63.71

* 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 Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 is calculated as:

For example, Mastercard's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=0.222/131.7762*131.7762
=0.222

Current CPI (Mar. 2024) = 131.7762.

Mastercard Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.042 100.560 0.055
201409 0.085 100.428 0.112
201412 0.041 99.070 0.055
201503 0.075 99.621 0.099
201506 0.065 100.684 0.085
201509 0.130 100.392 0.171
201512 0.111 99.792 0.147
201603 0.105 100.470 0.138
201606 0.096 101.688 0.124
201609 0.127 101.861 0.164
201612 0.098 101.863 0.127
201703 0.059 102.862 0.076
201706 0.124 103.349 0.158
201709 0.157 104.136 0.199
201712 0.170 104.011 0.215
201803 0.091 105.290 0.114
201806 0.158 106.317 0.196
201809 0.284 106.507 0.351
201812 0.146 105.998 0.182
201903 0.140 107.251 0.172
201906 0.164 108.070 0.200
201909 0.279 108.329 0.339
201912 0.365 108.420 0.444
202003 0.257 108.902 0.311
202006 0.212 108.767 0.257
202009 0.258 109.815 0.310
202012 0.349 109.897 0.418
202103 0.240 111.754 0.283
202106 0.339 114.631 0.390
202109 0.395 115.734 0.450
202112 0.548 117.630 0.614
202203 0.243 121.301 0.264
202206 0.379 125.017 0.399
202209 0.625 125.227 0.658
202212 0.486 125.222 0.511
202303 0.275 127.348 0.285
202306 0.407 128.729 0.417
202309 0.507 129.860 0.514
202312 0.651 129.419 0.663
202403 0.222 131.776 0.222

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

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  (BSP:MSCD34) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Mastercard Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Mastercard's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Mastercard (BSP:MSCD34) 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.

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