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Mastercard’s Premium Valuations: Still a Buying Opportunity?

Mastercard’s Premium Valuations: Still a Buying Opportunity?

Mastercard (MA) currently has premium valuations. Its price-to-earnings ratio on an NTM (next-12-month) basis is 28.86x compared to a peer average of 16.34x. Mastercard’s competitors Visa (V), Capital One Financial (COF), and American Express (AXP) have price-to-earnings ratios of 26.5x, 9.25x, and 13.28x, respectively, on an NTM basis.