NYSE:MA). The company’s shares received a lot of attention from a substantial price increase on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Mastercard’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.” data-reactid=”28″>Let’s talk about the popular Mastercard Incorporated (NYSE:MA). The company’s shares received a lot of attention from a substantial price increase on the NYSE over the last few months. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Mastercard’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
See our latest analysis for Mastercard ” data-reactid=”29″>See our latest analysis for Mastercard
What’s the opportunity in Mastercard?
According to my valuation model, Mastercard seems to be fairly priced at around 18.40% above my intrinsic value, which means if you buy Mastercard today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $277.48, there’s only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Mastercard’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company’s shares will likely fall by more than the rest of the market, providing a prime buying opportunity.
Can we expect growth from Mastercard?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Mastercard’s earnings over the next few years are expected to increase by 29%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.
What this means for you:
2 warning signs for Mastercard and we think they deserve your attention.” data-reactid=”53″>So if you’d like to dive deeper into this stock, it’s crucial to consider any risks it’s facing. At Simply Wall St, we found 2 warning signs for Mastercard and we think they deserve your attention.
50 other stocks with a high growth potential.” data-reactid=”54″>If you are no longer interested in Mastercard, you can use our free platform to see our list of over 50 other stocks with a high growth potential.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”55″>This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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