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Mastercard Inc (NYSE:MA)
EV/EBITDA
18.94 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Mastercard Inc's enterprise value is $115,800 Mil. Mastercard Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Dec. 2016 was $6,114 Mil. Therefore, Mastercard Inc's EV/EBITDA ratio for today is 18.94.

MA' s EV/EBITDA Range Over the Past 10 Years
Min: 17.6   Max: 21.1
Current: 19.4

17.6
21.1

During the past 13 years, the highest EV/EBITDA Ratio of Mastercard Inc was 21.10. The lowest was 17.60. And the median was 18.70.

MA's EV/EBITDA is ranked lower than
55% of the 315 Companies
in the Global Credit Services industry.

( Industry Median: 16.52 vs. MA: 19.40 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, Mastercard Inc's stock price is $110.33. Mastercard Inc's earnings per share for the trailing twelve months (TTM) ended in Dec. 2016 was $3.69. Therefore, Mastercard Inc's P/E Ratio for today is 29.90.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

Mastercard Inc's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=115799.878/6114
=18.94

Mastercard Inc's current Enterprise Value is $115,800 Mil.
Mastercard Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Dec. 2016 was 1452 (Mar. 2016 ) + 1480 (Jun. 2016 ) + 1749 (Sep. 2016 ) + 1433 (Dec. 2016 ) = $6,114 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

Mastercard Inc's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=110.33/3.69
=29.90

Mastercard Inc's share price for today is $110.33.
Mastercard Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Dec. 2016 was 0.86 (Mar. 2016 ) + 0.89 (Jun. 2016 ) + 1.08 (Sep. 2016 ) + 0.86 (Dec. 2016 ) = $3.69.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Mastercard Inc Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebitda 13.97-74.1410.427.9413.4712.5819.5917.3419.8718.78

Mastercard Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebitda 0.000.0019.0318.5518.5419.8718.0218.6117.9718.78
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