Is Mastercard, Inc. overvalued or undervalued?

As of 12 September 2025, Mastercard, Inc. has moved from expensive to very expensive, indicating a significant shift in its valuation outlook. The company is overvalued, as reflected by its P/E ratio of 60, a Price to Book Value of 124.73, and an EV to EBITDA ratio of 47.56. In comparison to peers, Visa, Inc. has a P/E of 30.36 and an EV to EBITDA of 24.18, while PayPal Holdings, Inc. shows a much lower P/E of 15.30 and an EV to EBITDA of 10.54, highlighting Mastercard's premium valuation.
Despite a solid return of 18.45% over the past year, which outperformed the S&P 500's 17.14%, the company's valuation metrics suggest that it is priced too high relative to its peers and industry standards. The elevated PEG ratio of 3.44 further emphasizes the concern regarding its growth expectations versus its current price.