Stock fact sheet · data as of
Mastercard Incorporated (MA): fair value, margin of safety and Wheel Score
Ticker symbol MA · Financial Services · Financial - Credit Services · United States · Growth
Is MA undervalued?
Mastercard Incorporated (MA) closed at 672.68 on 5 Nov 2026, 72% above the GLS average fair value of 390.01. 8 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
The 9 models disagree widely: DDM gives 51.21 while Graham Growth gives 711.74. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
Ranked against every other company we cover, MA is clearly faster-growing than it is cheap, so the nightly engine files it under Growth (value score 9, growth score 68, out of 100).
Nine valuation models for MA
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 514.67 | -23% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 58.01 | -91% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 711.74 | +6% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 281.59 | -58% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 649.22 | -3% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 452.94 | -33% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 575.41 | -14% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 51.21 | -92% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 215.34 | -68% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -26.22 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 684.07 | +2% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - MA passes 5 of the nine Piotroski tests, which falls one point short of the "Piotroski 6 or more" Wheel Trade Filter. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is 9.5 out of 10 - high returns on capital, steady margins and growth that held up through bad years point to a durable business.
Returns on capital are high - ROIC 56.0%, ROE 193.5%, ROA 27.6% - with debt at 2.46 times equity and a free-cash-flow yield of 2.6%. Debt of 2.46 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
The dividend yield is 0.52% with a payout ratio of 18% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Payment Network 59%, Value Added Services And Solutions 41% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 2/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 56.0% |
|---|---|---|---|
| GLS Moat | 9.5 / 10 | ROE | 193.5% |
| Debt / equity | 2.46 | ROA | 27.6% |
| Free-cash-flow yield | 2.6% | Payout ratio | 18% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 2 / 10 |
Wheel Score 38: Weak
MA scores 38 out of 100 on the Wheel Score, in the Weak band (under 50): it fails filter 3, below fair value - trades 72% above our fair value; and filter 4, financially healthy - Piotroski 5/9 (under 6); and filter 7, a premium worth selling - implied volatility 24% (under 25%), and the parts are thin too - value weak, premium weak, moat strong, health fair, red flags strong, option trading strong, stability strong. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility on the near-the-money contracts is 24%, below the 25% the Wheel Trade Filter on premium asks for: a put pays too little to be worth selling. The option chain is deep: 94,820 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 4.6M shares a day on a market cap of $586.3B, with a beta of 0.77 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that strong.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Passes | Listed options with 1,000+ contracts of open interest and 100+ traded a day |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Fails | trades 72% above our fair value |
| 4 | Financially healthy | Fails | Piotroski 5/9 (under 6) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Fails | implied volatility 24% (under 25%) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Weak | 72% above fair value | |
| Premium | Weak | implied volatility 24% | |
| Moat | Strong | moat 9.5/10 | |
| Health | Fair | Piotroski 5/9 | |
| Red Flags | Strong | Red Flags score 90/100 | |
| Option trading | Strong | 11,932 contracts a day, 94,820 open interest | |
| Stability | Strong | beta 0.77, $586.3B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 28 Jan 2027, 84 days away - outside the window of a 30-45-day put sold today.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Financial - Credit Services
The 12 companies below are the closest to Mastercard Incorporated by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| V Visa Inc. | 436.57 | 228.84 | -91% | 45Weak | $816.0B |
| AXP American Express Company | 332.59 | 310.77 | -7% | 45Weak | $223.0B |
| COF Capital One Financial Corporation | 206.31 | 463.47 | +55% | 91Prime | $126.6B |
| PYPL PayPal Holdings, Inc. | 60.20 | 106.42 | +43% | 88Prime | $50.0B |
| IX ORIX Corporation | 37.04 | 42.91 | +14% | 33No options | $41.1B |
| GPN Global Payments Inc. | 96.09 | 65.01 | -48% | 35Weak | $25.4B |
| SYF Synchrony Financial | 75.03 | 340.10 | +78% | 52Fair | $24.4B |
| AFRM Affirm Holdings, Inc. | 75.59 | 173.51 | +56% | 47Weak | $22.6B |
| SOFI SoFi Technologies, Inc. | 17.38 | 19.24 | +10% | 41Weak | $22.5B |
| KKRS KKR Group Finance Co. IX LLC 4. | 15.36 | 60.27 | +75% | 31No options | $13.6B |
| ALLY Ally Financial Inc. | 39.36 | 70.99 | +45% | 83Good | $12.0B |
| FCFS FirstCash Holdings, Inc | 193.34 | 232.88 | +17% | 77Good | $8.3B |
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about MA
Is MA undervalued right now?
No: at 672.68 the stock trades 72% above the GLS average fair value of 390.01 (data as of 5 Nov 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of MA and what does it mean?
MA scores 38 out of 100 (Weak) - it fails Wheel Trade Filters 3, 4, 7. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for MA?
390.01 per share as of 5 Nov 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Mastercard Incorporated report earnings next?
The next earnings report is due on 28 Jan 2027, 84 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does MA have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,240 listed contracts with 94,820 open interest across all expiries and implied volatility of 24% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.