How to buy Mastercard shares | $305.57
Own Mastercard shares in just a few minutes.
Mastercard Incorporated is a credit services business with stocks listed in the US. Mastercard shares (MA) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$305.57 – an increase of 3.34% over the previous week.
How to buy shares in Mastercard
- Compare share trading platforms. To buy shares in a US company from Australia you'll need to find a trading platform that offers access to US stock markets. If you're just starting out, look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Mastercard. Find the share by name or ticker symbol: MA. Research its history to confirm it's a solid investment against your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Mastercard reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$305.57, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Mastercard, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Mastercard. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.
What's in this guide?
- Mastercard key stats
- Compare share trading platforms
- Is Mastercard stock a buy or sell?
- Mastercard performance over time
- Can I short Mastercard shares?
- Is Mastercard suitable for ethical investing?
- Are Mastercard shares over-valued?
- Mastercard's financials
- How volatile are Mastercard shares?
- Does Mastercard pay a dividend?
- Have Mastercard shares ever split?
- Other common questions
How has coronavirus impacted Mastercard's share price?
Since the stock market crash in March caused by coronavirus, Mastercard's share price has had significant negative movement.
Its last market close was US$305.57, which is 10.05% down on its pre-crash value of US$339.7 and 52.79% up on the lowest point reached during the March crash when the shares fell as low as US$199.99.
If you had bought US$1,000 worth of Mastercard shares at the start of February 2020, those shares would have been worth US$626.16 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth US$941.16.
Mastercard share priceUse our graph to track the performance of MA stocks over time.
Mastercard shares at a glance
|Latest market close||USD$305.57|
|52-week range||USD$199.99 - USD$367.25|
|50-day moving average||USD$332.5553|
|200-day moving average||USD$293.0572|
|Dividend yield||USD$1.6 (0.48%)|
|Earnings per share (TTM)||USD$7.226|
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Is it a good time to buy Mastercard stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Mastercard price performance over time
|1 week (2020-09-11)||-7.45%|
|1 month (2020-08-18)||-7.68%|
|3 months (2020-06-18)||0.24%|
|6 months (2020-03-18)||34.06%|
|1 year (2019-09-18)||11.08%|
|2 years (2018-09-18)||38.86%|
|3 years (2017-09-18)||116.10%|
|5 years (2015-09-18)||231.60%|
Is Mastercard under- or over-valued?
Valuing Mastercard stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Mastercard's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Mastercard's P/E ratio
Mastercard's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 46x. In other words, Mastercard shares trade at around 46x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Mastercard's PEG ratio
Mastercard's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.678. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Mastercard's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Mastercard's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$9.6 billion (£7.4 billion).
The EBITDA is a measure of a Mastercard's overall financial performance and is widely used to measure a its profitability.
|Revenue TTM||US$16.2 billion|
|Operating margin TTM||55.49%|
|Gross profit TTM||US$16.9 billion|
|Return on assets TTM||19.79%|
|Return on equity TTM||125.61%|
|Market capitalisation||US$330.5 billion|
TTM: trailing 12 months
Shorting Mastercard shares
There are currently 4.6 million Mastercard shares held short by investors – that's known as Mastercard's "short interest". This figure is 4.2% up from 4.4 million last month.
There are a few different ways that this level of interest in shorting Mastercard shares can be evaluated.
Mastercard's "short interest ratio" (SIR)
Mastercard's "short interest ratio" (SIR) is the quantity of Mastercard shares currently shorted divided by the average quantity of Mastercard shares traded daily (recently around 3.5 million). Mastercard's SIR currently stands at 1.29. In other words for every 100,000 Mastercard shares traded daily on the market, roughly 1290 shares are currently held short.
However Mastercard's short interest can also be evaluated against the total number of Mastercard shares, or, against the total number of tradable Mastercard shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Mastercard's short interest could be expressed as 0% of the outstanding shares (for every 100,000 Mastercard shares in existence, roughly 0 shares are currently held short) or 0.0052% of the tradable shares (for every 100,000 tradable Mastercard shares, roughly 5 shares are currently held short).
Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Mastercard.
Find out more about how you can short Mastercard stock.
Mastercard's environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Mastercard.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Mastercard's total ESG risk score
Total ESG risk: 18.6
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Mastercard's overall score of 18.6 (as at 07/31/2020) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Mastercard is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Mastercard's environmental score
Environmental score: 2.06/100
Mastercard's environmental score of 2.06 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Mastercard is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Mastercard's social score
Social score: 8.68/100
Mastercard's social score of 8.68 puts it squarely in the 5th percentile of companies rated in the same sector. This could suggest that Mastercard is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Mastercard's governance score
Governance score: 10.86/100
Mastercard's governance score puts it squarely in the 5th percentile of companies rated in the same sector. That could suggest that Mastercard is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Mastercard's controversy score
Controversy score: 4/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Mastercard scored a 4 out of 5 for controversy – the second-lowest score possible, reflecting that Mastercard has a damaged public profile.
Environmental, social, and governance (ESG) summary
|Total ESG score||18.6|
|Total ESG percentile||14.3|
|Environmental score percentile||5|
|Social score percentile||5|
|Governance score percentile||5|
|Level of controversy||4|
Mastercard share dividends
Dividend payout ratio: 20.22% of net profits
Recently Mastercard has paid out, on average, around 20.22% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 0.48% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Mastercard shareholders could enjoy a 0.48% return on their shares, in the form of dividend payments. In Mastercard's case, that would currently equate to about $1.6 per share.
While Mastercard's payout ratio might seem low, this can signify that Mastercard is investing more in its future growth.
Mastercard's most recent dividend payout was on 6 August 2020. The latest dividend was paid out to all shareholders who bought their shares by 7 July 2020 (the "ex-dividend date").
Have Mastercard's shares ever split?
Mastercard's shares were split on a 10:1 basis on 21 January 2014. So if you had owned 1 share the day before before the split, the next day you'd have owned 10 shares. This wouldn't directly have changed the overall worth of your Mastercard shares – just the quantity. However, indirectly, the new 90% lower share price could have impacted the market appetite for Mastercard shares which in turn could have impacted Mastercard's share price.
Mastercard share price volatility
Over the last 12 months, Mastercard's shares have ranged in value from as little as US$199.99 up to US$367.25. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Mastercard's is 1.1014. This would suggest that Mastercard's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company offers integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. It also provides value-added products and services comprising cyber and intelligence products, information and analytics services, consulting services, loyalty and reward programs, processing services, and issuer and acquirer processing services. The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. The company was founded in 1966 and is headquartered in Purchase, New York.
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