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 due to several key financial ratios that suggest an inflated market perception compared to its industry peers. Firstly, the company's Price-to-Earnings (PE) ratio stands at 38.98, significantly higher than the sector average of 12.19. A high PE ratio indicates that investors are willing to pay much more for each dollar of earnings, which may suggest overvaluation when compared to other companies in the same sector. Additionally, the Price-to-Book (PB) ratio is notably high at 74.53, compared to the sector's 1.12. This ratio reflects how much investors are paying for each dollar of net assets. A PB ratio this elevated can signal that the stock price is disproportionately high relative to the company's book value, indicating potential overvaluation. The Dividend Yield for Mastercard is only 0.49, while the sector offers an average yield of 3.30. This lower yield may deter income-focused investors, suggesting that the company is not providing competitive returns relative to its peers. Furthermore, while Mastercard boasts impressive profitability metrics, such as a net profit margin of 45.71 and a return on equity (ROE) of 198.52, these figures may not justify the high valuations when considering the elevated PE and PB ratios alongside lower dividend yields. In summary, the disparity between Mastercard's financial ratios and those of its sector peers raises concerns about its current valuation levels. 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.