Key statistics

Is MA a good stock to buy in 2026?

MA stock shows a strong analyst consensus, with 79.7% recommending a Buy, and a significant upside of 32.7% to the consensus target of $657.38. However, its P/E ratio of 28.35x stands at a premium to the sector average of 21.6x, suggesting a less attractive MA valuation on traditional multiples. Despite this, a discounted cash flow (DCF) analysis indicates a fair value of $576.33, implying it is currently undervalued by 16.3%, pointing to potential for MA stock growth.

2026 MA price scenarios

Based on analyst consensus of $657.38 from 64 analysts. Not a prediction by Alert Invest.

About Mastercard Incorporated (MA)

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers other payment-related products and services. The company offers integrated products and value-added services for account holders, merchants, financial institutions, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; prepaid programs and management services; commercial credit and debit payment products and solutions; and payment products and solutions that allow its customers to access funds in deposit and other accounts.

Under the leadership of CEO Michael Miebach, Mastercard operates with approximately 35,300 employees globally, driving innovation in payment solutions. The company’s distinctive strengths lie in its extensive global network, strong brand recognition, and a resilient business model that thrives on increasing digital transaction volumes worldwide. This robust infrastructure and strategic leadership underpin Mastercard’s position in the fiercely competitive financial services industry.

MA competitive moat and business analysis

Mastercard Incorporated (MA) maintains a formidable competitive advantage, primarily stemming from its powerful network effects. As a payment processor, its value increases with every new consumer and merchant that joins its system, creating significant barriers to entry for competitors. The company boasts an excellent net margin of 45.88%, demonstrating superior operational efficiency and pricing power. While specific ROE and ROIC figures are currently unavailable, Mastercard’s consistent profitability metrics underscore a business model with strong returns on capital, indicative of its wide economic moat.

Unfortunately, detailed segmental and geographical revenue breakdowns for Mastercard for fiscal year 2025 are not readily available in the provided data. Typically, such information would shed light on the company’s performance across different product lines and international markets, including processing fees, cross-border transaction revenues, and value-added services. Without this specific breakdown, our analysis relies on the aggregate revenue figures to assess the overall performance of MA stock.

Mastercard’s competitive moat appears to be strengthening, fueled by robust revenue growth of 16.4% year-over-year. The increasing shift towards digital payments globally, coupled with the company’s continuous investment in new technologies like cybersecurity and blockchain, helps reinforce its market position. The absence of a recent transcript quote prevents direct insight into management’s latest views on moat trends, but the sustained growth trajectory suggests effective execution in a dynamic industry. Investors looking at MA stock should monitor innovation efforts and strategic partnerships.

When evaluating MA stock against its peers in the Financial – Credit Services industry, it’s clear that Mastercard benefits from its central role in the global payment ecosystem. For a deeper dive into how Mastercard stacks up against its rivals, investors can perform detailed comparisons. For example, exploring MA vs ALLY reveals differences in their business models, with Ally Financial being more focused on digital banking and auto finance. A comparison of MA vs AXP (American Express) would highlight distinctions in their integrated card network and issuer models. Meanwhile, an analysis of MA vs COF (Capital One Financial) would focus on contrasts between a payment network giant and a major credit card issuer and bank. These comparisons are crucial for understanding the relative MA valuation and growth prospects within the sector.

Mastercard Incorporated analyst rating

Based on 64 analysts. 79.7% rate MA Buy or Strong Buy.

A 79.7% “Buy” rating from 64 analysts is a very strong endorsement for MA stock, significantly higher than what is typically observed across the broader Financial Services sector, indicating a high degree of confidence in its future performance.

Is MA undervalued or overvalued?

Assessing the MA valuation, Mastercard’s P/E ratio of 28.35x currently trades at a noticeable premium compared to the Financial – Credit Services sector average of 21.6x. This suggests that investors are willing to pay more for Mastercard’s earnings, likely due to its strong market position, consistent profitability, and growth prospects in the digital payments space. While this higher multiple might suggest that MA stock is overvalued from a comparative perspective, its quality and resilience often command a premium.

However, a discounted cash flow (DCF) analysis paints a different picture, indicating a fair value of $576.33 for MA stock, which implies it is currently undervalued by 16.3% relative to its current price. This intrinsic value assessment suggests that despite its high P/E, Mastercard’s future cash flows are robust enough to warrant a higher valuation. The combination of a strong analyst consensus and an attractive DCF value could make MA an appealing opportunity for long-term growth investors, even if its P/B ratio of 65.67x and P/S ratio of 12.92x appear expensive.

MA financial health & key metrics

For value investors assessing MA stock, the financial metrics present a mixed but generally strong picture. While Mastercard demonstrates exceptional profitability with a net margin of 45.88% and robust revenue growth of 16.4%, its P/E ratio of 28.35x suggests it trades at a premium compared to the Financial – Credit Services sector average of 21.6x. The debt-to-equity ratio of 2.82x is relatively high, which warrants attention. However, a discounted cash flow (DCF) analysis points to a fair value of $576.33, indicating that MA stock might be undervalued by 16.3% based on its intrinsic value, offering an attractive entry point for long-term holders despite the higher multiples.

Mastercard Incorporated earnings history & next report

Mastercard Incorporated reported EPS of $4.6, beating estimates by 4.31%. Next earnings: 2026-07-30 with EPS estimate of $4.83.

At the next earnings report on 2026-07-30, investors should closely watch Mastercard’s ability to meet or exceed the EPS estimate of $4.83, especially after beating estimates by 4.31% in its previous report. Key areas to monitor include growth in cross-border volume and switched transactions, any updates on strategic partnerships or new product launches, and management’s outlook on global consumer spending trends, all of which will influence the future trajectory of MA stock.

MA daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

MA insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent MA analyst rating changes

Mastercard Incorporated stock news today

How does MA compare to its peers?

For investors considering MA stock, it’s beneficial to analyze its performance and business model in the context of its industry peers. The Financial – Credit Services sector offers several other compelling investment opportunities that operate in related but distinct areas of the payments and financial landscape. Comparing Mastercard against these companies can provide valuable insights into its relative strengths, MA valuation, and growth potential.

FAQ — Mastercard Incorporated (MA) stock