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Mastercard (Mastercard) Cyclically Adjusted Price-to-FCF : 59.99 (As of May. 23, 2024)


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What is Mastercard Cyclically Adjusted Price-to-FCF?

As of today (2024-05-23), Mastercard's current share price is $456.52. Mastercard's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2024 was $7.61. Mastercard's Cyclically Adjusted Price-to-FCF for today is 59.99.

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

MA' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 45.57   Med: 60.07   Max: 89.74
Current: 60.31

During the past years, Mastercard's highest Cyclically Adjusted Price-to-FCF was 89.74. The lowest was 45.57. And the median was 60.07.

MA's Cyclically Adjusted Price-to-FCF is ranked worse than
87.25% of 102 companies
in the Credit Services industry
Industry Median: 9.295 vs MA: 60.31

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 $1.384. 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 $7.61 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
=456.52/7.61
=59.99

* 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)
=1.384/131.7762*131.7762
=1.384

Current CPI (Mar. 2024) = 131.7762.

Mastercard Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201406 0.578 100.560 0.757
201409 1.134 100.428 1.488
201412 0.485 99.070 0.645
201503 0.741 99.621 0.980
201506 0.644 100.684 0.843
201509 1.029 100.392 1.351
201512 0.888 99.792 1.173
201603 0.884 100.470 1.159
201606 0.867 101.688 1.124
201609 1.206 101.861 1.560
201612 0.908 101.863 1.175
201703 0.585 102.862 0.749
201706 1.164 103.349 1.484
201709 1.551 104.136 1.963
201712 1.600 104.011 2.027
201803 0.860 105.290 1.076
201806 1.300 106.317 1.611
201809 2.145 106.507 2.654
201812 1.165 105.998 1.448
201903 1.134 107.251 1.393
201906 1.321 108.070 1.611
201909 2.096 108.329 2.550
201912 2.759 108.420 3.353
202003 1.634 108.902 1.977
202006 1.265 108.767 1.533
202009 1.482 109.815 1.778
202012 2.102 109.897 2.520
202103 1.322 111.754 1.559
202106 2.088 114.631 2.400
202109 2.317 115.734 2.638
202112 3.003 117.630 3.364
202203 1.517 121.301 1.648
202206 2.331 125.017 2.457
202209 3.697 125.227 3.890
202212 2.870 125.222 3.020
202303 1.639 127.348 1.696
202306 2.597 128.729 2.658
202309 3.180 129.860 3.227
202312 4.121 129.419 4.196
202403 1.384 131.776 1.384

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  (NYSE:MA) 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 (Mastercard) 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.
Executives
Ajay Bhalla officer: President Cyber & Intelligence 2000 PURCHASE STREET, PURCHASE NY 10577
Craig Vosburg officer: President, North America 2000 PURCHASE STREET, PURCHASE NY 10577
Edward Grunde Mclaughlin officer: President, Operations & Tech 2000 PURCHASE STREET, PURCHASE NY 10577
Foundation Mastercard 10 percent owner 250 YONGE STREET, SUITE 2400, TORONTO A6 M5B 2L7
Richard K Davis director 800 NICOLLET MALL, MINNEAPOLIS MN 55402
J. Mehra Sachin officer: Chief Financial Officer HESS CORPORATION, 1185 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Hai Ling officer: Co-President, Intl Markets 2000 PURCHASE STREET, PURCHASE NY 10577
Timothy H Murphy officer: General Counsel 2000 PURCHASE STREET, PURCHASE NY 10577
Raj Seshadri officer: President, Data & Services 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Raghuvir Malhotra officer: Co-President, Intl Markets 2000 PURCHASE STREET, PURCHASE NY 10577
Michael Miebach officer: Chief Product Officer 2000 PURCHASE STREET, PURCHASE NY 10577
Linda Pistecchia Kirkpatrick officer: President, North America 2000 PURCHASE STREET, PURCHASE NY 10577
Harit Talwar director 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Sandra A Arkell officer: Controller 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Candido Bracher director 2000 PURCHASE STREET, PURCHASE NY 10577