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DCF Valuation
Base-case fair value
$534.80
Intrinsic $713.06 · 25% MOS
Current price: $489.79
Base-case summary
Our base-case DCF for Mastercard Inc (MA) projects 10 years of free cash flow growth at 14.4% for years 1–5 and 7.2% for years 6–10, anchored to 14.4% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from $17.8B in trailing free cash flow, this produces an intrinsic value of $713.06 per share. A 25% safety margin gives a fair value of $534.80, suggesting the stock is currently 9% undervalued against the $489.79 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
Model inputs
TTM Free Cash Flow
$17.8B
Cash & equivalents
$7.9B
Total debt
$19.0B
Shares outstanding
893M