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GuruFocus has detected 2 Warning Signs with Mastercard Inc $MA.
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Mastercard Inc (NYSE:MA)
EV-to-EBITDA
20.40 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, Mastercard Inc's enterprise value is $127,956 Mil. Mastercard Inc's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Mar. 2017 was $6,271 Mil. Therefore, Mastercard Inc's EV/EBITDA ratio for today is 20.40.

MA' s EV-to-EBITDA Range Over the Past 10 Years
Min: -154.9   Max: 625.1
Current: 20.4

-154.9
625.1

During the past 13 years, the highest EV/EBITDA Ratio of Mastercard Inc was 625.10. The lowest was -154.90. And the median was 15.55.

MA's EV-to-EBITDA is ranked lower than
61% of the 384 Companies
in the Global Credit Services industry.

( Industry Median: 13.89 vs. MA: 20.40 )

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 $121.63. Mastercard Inc's earnings per share for the trailing twelve months (TTM) ended in Mar. 2017 was $3.83. Therefore, Mastercard Inc's P/E Ratio for today is 31.76.

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)
=127955.815/6271
=20.40

Mastercard Inc's current Enterprise Value is $127,956 Mil.
Mastercard Inc's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Mar. 2017 was 1480 (Jun. 2016 ) + 1749 (Sep. 2016 ) + 1433 (Dec. 2016 ) + 1609 (Mar. 2017 ) = $6,271 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)
=121.63/3.83
=31.76

Mastercard Inc's share price for today is $121.63.
Mastercard Inc's Earnings Per Share for the trailing twelve months (TTM) ended in Mar. 2017 was 0.89 (Jun. 2016 ) + 1.08 (Sep. 2016 ) + 0.86 (Dec. 2016 ) + 1 (Mar. 2017 ) = $3.83.

* 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 13.97-74.1410.427.9413.4712.5819.5817.3419.5417.74

Mastercard Inc Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
ev2ebitda 17.3417.0818.9318.2319.5418.7816.9318.5017.7418.88
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