Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin59.5%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin45.6%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
C
Years to Pay Off Debt1.3 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$17.5B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$796M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
F
Margin of Safety0.0%
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book55.52x
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Cash Flow
A
Free Cash Flow$16.4B
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income8.1%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$17.3B
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
About Mastercard Incorporated
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers products and services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; consumer bill payment services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from an existing account and leverages the credit limit of the funding account; and a platform to optimize supplier payment enablement campaigns for financial institutions. In addition, the company offers Mastercard Move, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and partners with central banks, fintechs, and financial institutions, as well as enables various cross-border payment flows. Further, it provides security solutions; marketing, personalization, and issuer and merchant loyalty services; business and operational intelligence, advanced analytics and AI, consulting and agentic solutions, and payments and portfolio optimization; digital and authentication; processing and gateway solutions; and other solutions. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus names. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company offers products and services for account holders, merchants, financial institutions, digital partners, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid programs services; consumer bill payment services; and commercial credit, debit, and prepaid payment products and solutions. It also provides solutions that enable businesses or governments to make payments to businesses, including Virtual Card Number, which is generated dynamically from an existing account and leverages the credit limit of the funding account; and a platform to optimize supplier payment enablement campaigns for financial institutions. In addition, the company offers Mastercard Move, which partners with digital messaging and payment platforms to enable consumers to send money directly within applications to other consumers; and partners with central banks, fintechs, and financial institutions, as well as enables various cross-border payment flows. Further, it provides security solutions; marketing, personalization, and issuer and merchant loyalty services; business and operational intelligence, advanced analytics and AI, consulting and agentic solutions, and payments and portfolio optimization; digital and authentication; processing and gateway solutions; and other solutions. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus names. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Margin of Safety
How far below the Graham Number the stock trades. Graham required a 33% discount as a buffer against analytical error. However, the Graham Number itself assumes 1960s-era P/E and P/B norms — for modern asset-light businesses it often understates true intrinsic value, making 0% MoS appear misleadingly bad.
Price-to-Book
Market price vs book value per share. Rarely below 1.5x for quality businesses today. Intangible assets (brand, software, patents) don't appear on the balance sheet under accounting rules, making P/B artificially high for asset-light companies like software and consumer brands.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Mr. Market is currently offering Mastercard Incorporated at $489.79.
The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.
At $489.79, the stock trades at a 755% premium to its Graham Number of $57.26. Graham would consider this price speculative.
There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..
Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
77.9%▲
76.3%▲
76.0%▼
76.3%
Operating Margin %
59.5%▲
58.0%▼
58.3%▲
57.2%
Net Income %
45.6%▼
45.7%▲
44.6%▼
44.7%
Diluted EPS
16.52▲
13.89▲
11.83▲
10.22
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$54.2B
$48.1B
$42.4B
$38.7B
N/A
Total Debt
$19.0B▲
$18.2B▲
$15.7B▲
$14.0B•
N/A
Working Capital
$796M▲
$504M▼
$2.7B▲
$2.4B•
N/A
Years to Pay Debt
1.27
1.42
1.40
1.41
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
Free Cash Flow
$16.4B▲
$13.6B▲
$10.9B▲
$10.1B
Owner Earnings
$17.3B
$15.0B
$13.1B
$11.8B
CapEx % of Net Income
8.1%
9.3%
9.7%
11.0%
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
-73,840
-69,743
-73,211
-83,468
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
20,823,000
17,244,000
15,422,000
13,495,000
Total Unusual Items
-380,000
-447,000
-409,000
-542,000
Total Unusual Items Excluding Goodwill
-380,000
-447,000
-409,000
-542,000
Net Income From Continuing Operation Net Minority Interest
14,968,000
12,874,000
11,195,000
9,930,000
Reconciled Depreciation
1,143,000
897,000
799,000
750,000
Reconciled Cost Of Revenue
7,251,000
6,673,000
6,022,000
5,263,000
EBITDA
20,443,000
16,797,000
15,013,000
12,953,000
EBIT
19,300,000
15,900,000
14,214,000
12,203,000
Net Interest Income
-722,000
-646,000
-575,000
-471,000
Interest Expense
722,000
646,000
575,000
471,000
Normalized Income
15,274,160
13,251,257
11,530,789
10,388,532
Net Income From Continuing And Discontinued Operation
14,968,000
12,874,000
11,195,000
9,930,000
Total Expenses
13,277,000
11,840,000
10,468,000
9,515,000
Total Operating Income As Reported
18,897,000
15,582,000
14,008,000
12,264,000
Diluted Average Shares
906,000
927,000
946,000
971,000
Basic Average Shares
905,000
925,000
944,000
968,000
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
14,968,000
12,874,000
11,195,000
9,930,000
Net Income Common Stockholders
14,968,000
12,874,000
11,195,000
9,930,000
Net Income
14,968,000
12,874,000
11,195,000
9,930,000
Net Income Including Noncontrolling Interests
14,968,000
12,874,000
11,195,000
9,930,000
Net Income Continuous Operations
14,968,000
12,874,000
11,195,000
9,930,000
Tax Provision
3,610,000
2,380,000
2,444,000
1,802,000
Pretax Income
18,578,000
15,254,000
13,639,000
11,732,000
Other Income Expense
-214,000
-427,000
-416,000
-519,000
Other Non Operating Income Expenses
166,000
20,000
-7,000
23,000
Special Income Charges
-504,000
-680,000
-539,000
-356,000
Other Special Charges
504,000
680,000
539,000
356,000
Gain On Sale Of Security
124,000
233,000
130,000
-186,000
Net Non Operating Interest Income Expense
-722,000
-646,000
-575,000
-471,000
Interest Expense Non Operating
722,000
646,000
575,000
471,000
Operating Income
19,514,000
16,327,000
14,630,000
12,722,000
Operating Expense
6,026,000
5,167,000
4,446,000
4,252,000
Depreciation Amortization Depletion Income Statement
1,143,000
897,000
799,000
750,000
Depreciation And Amortization In Income Statement
1,143,000
897,000
799,000
750,000
Selling General And Administration
4,883,000
4,270,000
3,647,000
3,502,000
Selling And Marketing Expense
929,000
815,000
825,000
789,000
General And Administrative Expense
3,954,000
3,455,000
2,822,000
2,713,000
Other Gand A
3,954,000
3,455,000
2,822,000
2,713,000
Gross Profit
25,540,000
21,494,000
19,076,000
16,974,000
Cost Of Revenue
7,251,000
6,673,000
6,022,000
5,263,000
Total Revenue
32,791,000
28,167,000
25,098,000
22,237,000
Operating Revenue
32,791,000
28,167,000
25,098,000
22,237,000
Balance Sheet
2025
2024
2023
2022
2021
Treasury Shares Number
518,000
497,000
475,000
451,000
Ordinary Shares Number
894,038
913,400
934,000
956,000
Share Issued
1,412,038
1,410,400
1,409,000
1,407,000
Net Debt
8,434,000
9,784,000
7,093,000
7,015,000
Total Debt
19,000,000
18,226,000
15,681,000
14,023,000
Tangible Book Value
-7,377,000
-8,161,000
-4,817,000
-5,083,000
Invested Capital
26,737,000
24,711,000
22,610,000
20,321,000
Working Capital
796,000
504,000
2,697,000
2,435,000
Net Tangible Assets
-7,377,000
-8,161,000
-4,817,000
-5,083,000
Common Stock Equity
7,737,000
6,485,000
6,929,000
6,298,000
Total Capitalization
25,988,000
23,961,000
21,273,000
20,047,000
Total Equity Gross Minority Interest
7,746,000
6,515,000
6,997,000
6,377,000
Minority Interest
9,000
30,000
68,000
79,000
Stockholders Equity
7,737,000
6,485,000
6,929,000
6,298,000
Gains Losses Not Affecting Retained Earnings
-981,000
-1,433,000
-1,099,000
-1,253,000
Other Equity Adjustments
-981,000
-1,433,000
-1,099,000
-1,253,000
Treasury Stock
83,224,000
71,431,000
60,429,000
51,354,000
Retained Earnings
85,035,000
72,907,000
62,564,000
53,607,000
Additional Paid In Capital
6,907,000
6,442,000
5,893,000
5,298,000
Total Liabilities Net Minority Interest
46,411,000
41,566,000
35,451,000
32,347,000
Total Non Current Liabilities Net Minority Interest
23,649,000
22,346,000
19,187,000
18,176,000
Other Non Current Liabilities
5,091,000
4,553,000
4,474,000
4,034,000
Preferred Securities Outside Stock Equity
29,000
Non Current Deferred Liabilities
307,000
317,000
369,000
393,000
Non Current Deferred Taxes Liabilities
307,000
317,000
369,000
393,000
Long Term Debt And Capital Lease Obligation
18,251,000
17,476,000
14,344,000
13,749,000
Long Term Debt
18,251,000
17,476,000
14,344,000
13,749,000
Current Liabilities
22,762,000
19,220,000
16,264,000
14,171,000
Other Current Liabilities
6,942,000
6,218,000
4,853,000
4,076,000
Current Debt And Capital Lease Obligation
749,000
750,000
1,337,000
274,000
Current Debt
749,000
750,000
1,337,000
274,000
Other Current Borrowings
749,000
750,000
792,000
Payables And Accrued Expenses
15,071,000
12,252,000
10,074,000
9,821,000
Current Accrued Expenses
13,158,000
10,869,000
8,754,000
8,616,000
Payables
1,913,000
1,383,000
1,320,000
1,205,000
Other Payable
913,000
Total Tax Payable
914,000
454,000
486,000
279,000
Accounts Payable
999,000
929,000
834,000
926,000
Total Assets
54,157,000
48,081,000
42,448,000
38,724,000
Total Non Current Assets
30,599,000
28,357,000
23,487,000
22,118,000
Other Non Current Assets
8,809,000
7,350,000
5,813,000
5,217,000
Non Current Deferred Assets
1,567,000
1,614,000
1,355,000
1,151,000
Non Current Deferred Taxes Assets
1,567,000
1,614,000
1,355,000
1,151,000
Non Current Accounts Receivable
1,101,000
1,002,000
783,000
633,000
Investments And Advances
1,705,000
1,607,000
1,729,000
1,730,000
Investmentin Financial Assets
1,705,000
1,607,000
1,729,000
1,730,000
Available For Sale Securities
1,705,000
1,607,000
1,729,000
1,730,000
Goodwill And Other Intangible Assets
15,114,000
14,646,000
11,746,000
11,381,000
Other Intangible Assets
5,554,000
5,453,000
4,086,000
3,859,000
Goodwill
9,560,000
9,193,000
7,660,000
7,522,000
Net PPE
2,303,000
2,138,000
2,061,000
2,006,000
Accumulated Depreciation
-2,756,000
-2,393,000
-2,237,000
-1,904,000
Gross PPE
5,059,000
4,531,000
4,298,000
3,910,000
Leases
497,000
436,000
398,000
376,000
Other Properties
3,713,000
3,285,000
3,132,000
2,786,000
Machinery Furniture Equipment
105,000
101,000
90,000
96,000
Buildings And Improvements
744,000
709,000
678,000
652,000
Current Assets
23,558,000
19,724,000
18,961,000
16,606,000
Other Current Assets
5,369,000
4,813,000
3,844,000
3,616,000
Restricted Cash
2,682,000
2,366,000
1,877,000
2,157,000
Prepaid Assets
34,000
92,000
Receivables
4,609,000
3,773,000
4,060,000
3,425,000
Other Receivables
1,319,000
Accounts Receivable
4,609,000
3,773,000
4,060,000
3,425,000
Cash Cash Equivalents And Short Term Investments
10,898,000
8,772,000
9,180,000
7,408,000
Other Short Term Investments
332,000
330,000
592,000
400,000
Cash And Cash Equivalents
10,566,000
8,442,000
8,588,000
7,008,000
Cash Flow
2025
2024
2023
2022
Free Cash Flow
16,433,000
13,586,000
10,892,000
10,098,000
Repurchase Of Capital Stock
-11,727,000
-10,954,000
-9,032,000
-8,753,000
Repayment Of Debt
-750,000
-1,336,000
0
-724,000
Issuance Of Debt
1,242,000
3,960,000
1,554,000
1,123,000
Capital Expenditure
-1,215,000
-1,194,000
-1,088,000
-1,097,000
Interest Paid Supplemental Data
680,000
571,000
477,000
414,000
Income Tax Paid Supplemental Data
3,020,000
3,252,000
2,746,000
2,506,000
End Cash Position
13,248,000
10,808,000
10,465,000
9,196,000
Beginning Cash Position
10,808,000
10,465,000
9,196,000
9,902,000
Effect Of Exchange Rate Changes
333,000
-199,000
128,000
-103,000
Changes In Cash
2,107,000
542,000
1,141,000
-603,000
Financing Cash Flow
-14,179,000
-10,836,000
-9,488,000
-10,328,000
Cash Flow From Continuing Financing Activities
-14,179,000
-10,836,000
-9,488,000
-10,328,000
Net Other Financing Charges
-391,000
-282,000
-89,000
-161,000
Proceeds From Stock Option Exercised
203,000
224,000
237,000
90,000
Cash Dividends Paid
-2,756,000
-2,448,000
-2,158,000
-1,903,000
Common Stock Dividend Paid
-2,756,000
-2,448,000
-2,158,000
-1,903,000
Net Common Stock Issuance
-11,727,000
-10,954,000
-9,032,000
-8,753,000
Common Stock Payments
-11,727,000
-10,954,000
-9,032,000
-8,753,000
Net Issuance Payments Of Debt
492,000
2,624,000
1,554,000
399,000
Net Long Term Debt Issuance
492,000
2,624,000
1,554,000
399,000
Long Term Debt Payments
-750,000
-1,336,000
0
-724,000
Long Term Debt Issuance
1,242,000
3,960,000
1,554,000
1,123,000
Investing Cash Flow
-1,362,000
-3,402,000
-1,351,000
-1,470,000
Cash Flow From Continuing Investing Activities
-1,362,000
-3,402,000
-1,351,000
-1,470,000
Net Other Investing Changes
2,000
-3,000
-6,000
-3,000
Net Investment Purchase And Sale
-149,000
306,000
-257,000
-57,000
Sale Of Investment
719,000
964,000
479,000
537,000
Purchase Of Investment
-868,000
-658,000
-736,000
-594,000
Net Business Purchase And Sale
0
-2,511,000
0
-313,000
Purchase Of Business
0
-2,511,000
0
-313,000
Net PPE Purchase And Sale
-489,000
-474,000
-371,000
-442,000
Purchase Of PPE
-489,000
-474,000
-371,000
-442,000
Capital Expenditure Reported
-726,000
-720,000
-717,000
-655,000
Operating Cash Flow
17,648,000
14,780,000
11,980,000
11,195,000
Cash Flow From Continuing Operating Activities
17,648,000
14,780,000
11,980,000
11,195,000
Change In Working Capital
-1,442,000
-1,040,000
-1,943,000
-904,000
Change In Other Working Capital
834,000
131,000
922,000
-6,000
Change In Other Current Liabilities
89,000
922,000
282,000
201,000
Change In Other Current Assets
202,000
-593,000
40,000
48,000
Change In Payables And Accrued Expense
1,554,000
1,704,000
-32,000
1,497,000
Change In Accrued Expense
1,694,000
1,792,000
196,000
1,428,000
Change In Payable
-140,000
-88,000
-228,000
69,000
Change In Account Payable
45,000
75,000
-99,000
190,000
Change In Tax Payable
-185,000
-163,000
-129,000
-121,000
Change In Income Tax Payable
-185,000
-163,000
-129,000
-121,000
Change In Prepaid Assets
-3,388,000
-3,225,000
-2,438,000
-2,175,000
Change In Receivables
-733,000
21,000
-717,000
-469,000
Changes In Account Receivables
-642,000
186,000
-546,000
-481,000
Other Non Cash Items
2,237,000
2,021,000
1,644,000
1,630,000
Stock Based Compensation
597,000
526,000
460,000
295,000
Deferred Tax
57,000
-527,000
-236,000
-651,000
Deferred Income Tax
57,000
-527,000
-236,000
-651,000
Depreciation Amortization Depletion
1,143,000
897,000
799,000
750,000
Depreciation And Amortization
1,143,000
897,000
799,000
750,000
Operating Gains Losses
88,000
29,000
61,000
145,000
Gain Loss On Investment Securities
88,000
29,000
61,000
145,000
Net Income From Continuing Operations
14,968,000
12,874,000
11,195,000
9,930,000
4/7
Graham Score
Enterprising Investor
Requires deeper research. Suited for active investors.
Graham's Fair Value
$57.26
Margin of Safety
0%
Market Cap / Net Assets
55.5x
Net Assets: $7.7B
Warren's Owner Earnings
$17.3B
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
4/7 — Enterprising Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$32.8B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.03x
vs Current Ratio > 2.0x
✅
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
No loss years (4 yrs data)
vs No negative EPS years
✅
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
0.66%
vs Uninterrupted dividends
✅
Earnings Growth
EPS grew from $10.22 to $16.52 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
+61.6% EPS growth
vs > 33% EPS growth
❌
Moderate P/E Ratio
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
28.3x
vs P/E ≤ 15.0x
❌
Moderate Price-to-Book
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
55.52x P/B (P/E×P/B: 1571.9)
vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $32.8Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.03xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
✅ Earnings Stability — No loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
✅ Dividend Record — 0.66%vs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $10.22 to $16.52 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
❌ Moderate P/E Ratio — 28.3xvs P/E ≤ 15.0x
Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.
"The price-earnings ratio should be no more than 15 times average earnings."
Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.
"The price should not be more than 1½ times book value. P/E × P/B ≤ 22.5."
These metrics estimate what Mastercard Incorporated is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
$-26.06
Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
$247.22
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
49.1%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
Capital Expenditure % of Net Income
8.1%
9.3%
9.7%
11.0%
Repurchase of Capital Stock
-$11.7B
-$11.0B
-$9.0B
-$8.8B
Free Cash Flow
$16.4B▲
$13.6B▲
$10.9B▲
$10.1B•
Warren's Owner Earnings
$17.3B
$15.0B
$13.1B
$11.8B
Peers & Industry
No auto-detected peers for Credit Services. You can manually compare MA against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
Capital Allocation & Alignment
Insider Ownership
0.11%
Low — management has little skin in the game
Return on Equity (ROE)
193.5%
Excellent — management generates strong returns on equity
Return on Assets (ROA)
27.6%
Strong — management uses assets efficiently
Share Buybacks (Latest Year)
$11.7B
Management is returning capital to shareholders via buybacks
Debt Trend YoY
+4.2% YoY
Debt is roughly stable
Leadership Team
Michael Miebach
CEO, President & Director
Age 57
Pay: $9,761,053
0.065% of net income
Sachin Mehra
Chief Financial Officer
Age 54
Pay: $3,326,275
0.022% of net income
Edward Grunde McLaughlin
President & CTO of Mastercard Technology
Age 59
Pay: $2,064,752
0.014% of net income
Linda Pistecchia Kirkpatrick
President of the Americas
Age 48
Pay: $2,297,718
0.015% of net income
Devin Corr
Executive Vice President of Investor Relations
Top Institutional Holders
Institution
% Owned
Shares
Blackrock Inc.
7.64%
67,011,988
Mastercard Foundation Asset Management Corp
7.44%
65,234,702
Vanguard Capital Management LLC
5.97%
52,337,454
State Street Corporation
4.16%
36,478,022
JPMORGAN CHASE & CO
3.72%
32,656,501
FMR, LLC
2.77%
24,263,911
Geode Capital Management, LLC
2.40%
21,071,444
Vanguard Portfolio Management LLC
2.22%
19,434,544
⚠️Current ratio below 1 — liquidity risk
Risk Analysis
Beta (Market Risk)
0.74
Low volatility — more stable than the market
Short Interest
0.7% of float
Low short interest — market is not heavily bearish
Debt-to-Equity
2.82x
High leverage — significant financial risk
Current Ratio
0.98x
Weak liquidity — current liabilities exceed current assets
52-Week Price Range
Low: $464.52Current: $489.79High: $601.77
Currently at 18% of 52-week range
Mastercard Incorporated (MA) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: $57.26. Margin of safety: 0%. Gross profit margin: 77.9%. Operating margin: 59.5%. Net margin: 45.6%. Market cap: $432.8B. Sector: Financial Services. Industry: Credit Services. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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and may be delayed, inaccurate, or incomplete. Past performance is not indicative of future results. Analysis, scores, and valuations are algorithmic and do not represent professional investment recommendations. Always conduct your own due
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