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Mastercard (LIM:MA) Cyclically Adjusted PB Ratio : 79.16 (As of Jan. 19, 2025)


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What is Mastercard Cyclically Adjusted PB Ratio?

As of today (2025-01-19), Mastercard's current share price is $509.00. Mastercard's Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2024 was $6.43. Mastercard's Cyclically Adjusted PB Ratio for today is 79.16.

The historical rank and industry rank for Mastercard's Cyclically Adjusted PB Ratio or its related term are showing as below:

LIM:MA' s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 21.11   Med: 49.95   Max: 74.64
Current: 73.54

During the past years, Mastercard's highest Cyclically Adjusted PB Ratio was 74.64. The lowest was 21.11. And the median was 49.95.

LIM:MA's Cyclically Adjusted PB Ratio is ranked worse than
100% of 401 companies
in the Credit Services industry
Industry Median: 1.07 vs LIM:MA: 73.54

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 PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Mastercard's adjusted book value per share data for the three months ended in Sep. 2024 was $8.089. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $6.43 for the trailing ten years ended in Sep. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Mastercard Cyclically Adjusted PB Ratio Historical Data

The historical data trend for Mastercard's Cyclically Adjusted PB Ratio 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 PB Ratio Chart

Mastercard Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted PB Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 53.67 61.52 56.50 51.43 61.86

Mastercard Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cyclically Adjusted PB Ratio 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 57.49 61.86 68.50 62.19 69.21

Competitive Comparison of Mastercard's Cyclically Adjusted PB Ratio

For the Credit Services subindustry, Mastercard's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 PB Ratio Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Mastercard's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Mastercard's Cyclically Adjusted PB Ratio falls into.



Mastercard Cyclically Adjusted PB Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB 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 PB Ratio.

Mastercard's Cyclically Adjusted PB Ratio for today is calculated as

Cyclically Adjusted PB Ratio=Share Price/ Cyclically Adjusted Book per Share
=509.00/6.43
=79.16

* 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 Book per Share for the quarter that ended in Sep. 2024 is calculated as:

For example, Mastercard's adjusted Book Value per Share data for the three months ended in Sep. 2024 was:

Adj_Book=Book Value per Share/CPI of Sep. 2024 (Change)*Current CPI (Sep. 2024)
=8.089/133.0289*133.0289
=8.089

Current CPI (Sep. 2024) = 133.0289.

Mastercard Quarterly Data

Book Value per Share CPI Adj_Book
201412 5.891 99.070 7.910
201503 5.513 99.621 7.362
201506 5.647 100.684 7.461
201509 5.574 100.392 7.386
201512 5.401 99.792 7.200
201603 4.972 100.470 6.583
201606 5.321 101.688 6.961
201609 5.695 101.861 7.438
201612 5.232 101.863 6.833
201703 5.224 102.862 6.756
201706 5.485 103.349 7.060
201709 6.077 104.136 7.763
201712 5.188 104.011 6.635
201803 5.442 105.290 6.876
201806 5.060 106.317 6.331
201809 5.580 106.507 6.970
201812 5.233 105.998 6.567
201903 5.047 107.251 6.260
201906 4.929 108.070 6.067
201909 4.900 108.329 6.017
201912 5.850 108.420 7.178
202003 5.376 108.902 6.567
202006 6.444 108.767 7.881
202009 5.808 109.815 7.036
202012 6.420 109.897 7.771
202103 6.377 111.754 7.591
202106 6.520 114.631 7.566
202109 6.812 115.734 7.830
202112 7.461 117.630 8.438
202203 7.214 121.301 7.911
202206 6.375 125.017 6.784
202209 6.605 125.227 7.017
202212 6.588 125.222 6.999
202303 5.622 127.348 5.873
202306 5.837 128.729 6.032
202309 6.721 129.860 6.885
202312 7.419 129.419 7.626
202403 7.778 131.776 7.852
202406 8.013 132.554 8.042
202409 8.089 133.029 8.089

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book 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  (LIM:MA) Cyclically Adjusted PB Ratio Explanation

Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value 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 PB Ratio should give similar results to regular PB Ratio.


Mastercard Cyclically Adjusted PB Ratio Related Terms

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


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 $9 trillion in volume during 2023. Mastercard operates in over 200 countries and processes transactions in over 150 currencies.