Discounted Cash Flow (DCF) Analysis Unlevered

Mastercard Incorporated (MA)

$350.19

+0.53 (+0.15%)

All numbers are in Millions, Currency in USD

Stock DCF: 215.35 | 350.19 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	14,950	16,883	15,301	18,884	22,237	24,723.76	27,488.61	30,562.66	33,980.48	37,780.51
Revenue (%)
EBITDA	7,849	10,477	8,720	11,464	12,953	14,364.76	15,971.17	17,757.22	19,743.01	21,950.87
EBITDA (%)
EBIT	7,390	9,955	8,140	10,738	12,203	13,515.75	15,027.21	16,707.70	18,576.12	20,653.48
EBIT (%)
Depreciation	459	522	580	726	750	849.01	943.96	1,049.52	1,166.89	1,297.38
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	8,378	7,676	10,596	7,894	7,408	12,157.80	13,517.40	15,029.05	16,709.75	18,578.40
Total Cash (%)
Account Receivables	4,728	5,509	4,352	4,325	3,425	6,477.81	7,202.22	8,007.64	8,903.14	9,898.77
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	537	489	527	738	926	890.30	989.86	1,100.56	1,223.63	1,360.47
Accounts Payable (%)
Capital Expenditure	-504	-728	-708	-814	-1,097	-1,065.80	-1,184.99	-1,317.51	-1,464.84	-1,628.65
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 350.19
Beta	1.105
Diluted Shares Outstanding	971
Cost of Debt
Tax Rate	15.36
After-tax Cost of Debt	2.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.709
Total Debt	14,023
Total Equity	340,034.49
Total Capital	354,057.49
Debt Weighting	3.96
Equity Weighting	96.04
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	14,950	16,883	15,301	18,884	22,237	24,723.76	27,488.61	30,562.66	33,980.48	37,780.51
EBITDA	7,849	10,477	8,720	11,464	12,953	14,364.76	15,971.17	17,757.22	19,743.01	21,950.87
EBIT	7,390	9,955	8,140	10,738	12,203	13,515.75	15,027.21	16,707.70	18,576.12	20,653.48
Tax Rate	18.67%	16.58%	17.38%	15.72%	15.36%	16.74%	16.74%	16.74%	16.74%	16.74%
EBIAT	6,010.27	8,304.87	6,724.94	9,050.26	10,328.66	11,253.01	12,511.44	13,910.59	15,466.21	17,195.79
Depreciation	459	522	580	726	750	849.01	943.96	1,049.52	1,166.89	1,297.38
Accounts Receivable	-	-781	1,157	27	900	-3,052.81	-724.41	-805.42	-895.49	-995.64
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-48	38	211	188	-35.70	99.56	110.70	123.07	136.84
Capital Expenditure	-504	-728	-708	-814	-1,097	-1,065.80	-1,184.99	-1,317.51	-1,464.84	-1,628.65
UFCF	5,965.27	7,269.87	7,791.94	9,200.26	11,069.66	7,947.72	11,645.56	12,947.88	14,395.84	16,005.72
WACC
PV UFCF						7,326.43	9,896.03	10,142.61	10,395.33	10,654.35
SUM PV UFCF										48,414.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.48
Free cash flow (t + 1)	16,325.83
Terminal Value	251,941.89
Present Value of Terminal Value	167,707.31

Intrinsic Value

Enterprise Value	216,122.06
Net Debt	7,015
Equity Value	209,107.06
Shares Outstanding	971
Equity Value Per Share	215.35