Is Mastercard Incorporated (MA) Undervalued?
Based on the current stock price of $579.60 and a P/E ratio of 37.04,Mastercard Incorporated has a PEG ratio of 2.91.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 2.91, MA appears to be potentially overvalued relative to its growth rate of 12.74%.
Based on a PEG ratio of 2.78 (adjusted for dividends).
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How we analyzed MA
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 37.04and dividing it by the annual growth rate of 12.74%.
PEG = 37.04 (P/E) ÷ 12.74 (Growth) = 2.91
Frequently Asked Questions about MA
What is the current PEG Ratio for Mastercard Incorporated (MA)?+
The current PEG Ratio for Mastercard Incorporated is 2.91. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is MA stock undervalued right now?+
Based on the PEG ratio of 2.91, Mastercard Incorporated appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for MA?+
The PEGY ratio for Mastercard Incorporated is 2.78. This metric accounts for dividend yield (0.60%), providing a more complete valuation picture.