MA is now overvalued and could go down -45%

Based on our analysis, Mastercard Incorporated has received an overvalued rating of 1 out of 5 stars. Several key financial ratios indicate that the company's valuation may not align with its performance when compared to industry benchmarks. The Price-to-Earnings (PE) Ratio for Mastercard stands at 39.90, significantly higher than the sector average of 11.69. A higher PE ratio suggests that investors are paying more for each dollar of earnings, which could imply overvaluation if the growth expectations are not met. Additionally, the Price-to-Book (PB) Ratio for Mastercard is 74.53, while the sector average is only 1.12. This indicates that the market values Mastercard at a much higher multiple of its book value, raising concerns about sustainability in its current market price. The Dividend Yield for Mastercard is 0.48, markedly lower than the sector average of 3.08. A lower dividend yield may deter income-focused investors, which can affect the stock's attractiveness and potentially its price stability. While Mastercard excels in metrics such as net profit margin and return on equity, the elevated valuations in the highlighted ratios suggest that the stock may be overextended in the current market environment. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.