Discounted Cash Flow

Mastercard Inc.

MA · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $10.8b $4.1b $4.3b 37.7% $3.70
2017 $12.5b (16.0%) $3.9b (-3.5%) $5.3b (23.1%) 31.3% (-16.8%) $3.67 (-0.8%)
2018 $14.9b (19.6%) $5.9b (49.7%) $5.9b (12.1%) 39.2% (25.1%) $5.63 (53.4%)
2019 $16.9b (12.9%) $8.1b (38.6%) $7.8b (31.7%) 48.1% (22.7%) $7.98 (41.7%)
2020 $15.3b (-9.4%) $6.4b (-21.0%) $6.9b (-11.3%) 41.9% (-12.9%) $6.40 (-19.8%)
2021 $18.9b (23.4%) $8.7b (35.5%) $9.1b (31.5%) 46.0% (9.8%) $8.79 (37.3%)
2022 $22.2b (17.8%) $9.9b (14.3%) $10.8b (18.7%) 44.7% (-2.9%) $10.26 (16.7%)
2023 $25.1b (12.9%) $11.2b (12.7%) $11.6b (8.0%) 44.6% (-0.1%) $11.86 (15.6%)
2024 $28.2b (12.2%) $12.9b (15.0%) $14.3b (23.2%) 45.7% (2.5%) $13.91 (17.3%)
2025 $32.8b (16.4%) $15.0b (16.3%) $17.2b (19.9%) 45.6% (-0.1%) $16.54 (18.9%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model