{"id":32294,"date":"2023-07-06T14:51:03","date_gmt":"2023-07-06T18:51:03","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/where-is-mastercard-stock-headed\/"},"modified":"2023-07-06T14:51:05","modified_gmt":"2023-07-06T18:51:05","slug":"where-is-mastercard-stock-headed","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=32294","title":{"rendered":"Where Is Mastercard Stock Headed?"},"content":{"rendered":"<div>\n<p>Mastercard\u2019s stock (NYSE: MA) has gained approximately 13% YTD as compared to the 16% rise in the S&amp;P500 index over the same period. Further, at its current price of $394 per share, it is trading 7% below its fair value of $425 \u2013 Trefis\u2019 estimate for <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/MA\/no-login-required\/OfX6foM5\/Mastercard-MA-Valuation-Is-MA-Stock-Expensive-Or-Cheap-?fromforbesandarticle=trefis230706\">Mastercard\u2019s valuation<\/strong><strong>. <\/strong>The company posted better-than-expected results in the first quarter of 2023. It reported an 11% increase in the net revenues to $5.75 billion driven by growth in gross-dollar volume (up 10%), cross-border volume (29%), and number of switched transactions (12%). That said, the positive impact of higher revenues was offset by an unfavorable increase in the operating costs and income tax expenses, leading to a 10% drop in the net income to $2.36 billion.<\/p>\n<p>The company posted strong revenue growth in FY2022, thanks to a 45% jump in cross-border volumes due to the normalization of international travel post-Covid-19. Further, the gross-dollar volume and the number of switched transactions, the other two key metrics, also improved in the year. On the flip side, other income decreased from $225 million to -$532 million, hurting the bottom line. Overall, the firm managed to post a 14% y-o-y increase in net income.<\/p>\n<p>Moving forward, we expect the same trend to continue in Q2. Notably, the consensus estimates for Q2 revenues and earnings are $6.19 billion and $2.93 respectively. Altogether, <strong data-ga-track=\"ExternalLink:https:\/\/www.trefis.com\/data\/companies\/MA\/no-login-required\/BOGS0nyQ\/Mastercard-Revenues-How-Does-MA-Make-Money-?fromforbesandarticle=trefis230706\">Mastercard\u2019s revenues<\/strong> are estimated to touch $25.23 billion in FY2023. Additionally, MA\u2019s adjusted net income margin is expected to see a slight improvement in the year, leading to a net income of $11.6 billion. This coupled with an annual EPS of $12.17 and a P\/E multiple of just below 35x will lead to a valuation of $425.<\/p>\n<p>What if you\u2019re looking for a more balanced portfolio instead? Here\u2019s a high-quality portfolio that\u2019s beaten the market consistently since 2016.<\/p>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>Invest with <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/companies\/PORTFOLIOS\/no-login-required\/M7MacZNG?fromforbes\">Market Beating Portfolios<\/strong><\/p>\n<p>See all <strong>Trefis <\/strong><strong data-ga-track=\"ExternalLink:https:\/\/dashboards.trefis.com\/data\/price-estimates?fromforbes\">Price Estimates<\/strong><\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/greatspeculations\/2023\/07\/06\/where-is-mastercard-stock-headed\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mastercard\u2019s stock (NYSE: MA) has gained approximately 13% YTD as compared to the 16% rise in the S&amp;P500 index over the same period. Further, at its current price of $394 per share, it is trading 7% below its fair value of $425 \u2013 Trefis\u2019 estimate for Mastercard\u2019s valuation. The company posted better-than-expected results in the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":32295,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-32294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Where Is Mastercard Stock Headed? | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Mastercard\u2019s stock (NYSE: MA) has gained approximately 13% YTD as compared to the 16% rise in the S&amp;P500 index over the same period. 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