Research

MA – Market expectations are for Uniform ROA expansion, but management may be concerned about their product offerings, legislation, and expenses

  • Mastercard Incorporated (MA:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 31.9x Uniform P/E, suggesting bullish expectations for the firm. However, management may be concerned about the value of their product offerings, legislation on digital payments, and expenses
  • Specifically, management may be exaggerating the value their MasterCard Payment Gateway Services provide to vendors, and they may lack confidence in their ability to provide product choices to customers. Furthermore, they may be concerned about legislation on digital payments in Australia and about operating expense hikes due to acquisitions.