Is Mastercard, Inc. overvalued or undervalued?

As of 3 October 2025, the valuation grade for Mastercard, Inc. has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company appears to be overvalued based on its current metrics, with a P/E ratio of 60, a Price to Book Value of 124.73, and an EV to EBITDA of 47.56. In comparison, Visa, Inc. has a P/E of 30.36 and PayPal Holdings, Inc. boasts a very attractive P/E of 15.30, highlighting the premium at which Mastercard is trading relative to its peers.
Despite the overvaluation, Mastercard has shown strong performance with a 3-year return of 99.82%, significantly outpacing the S&P 500's 82.57% over the same period. However, the company's year-to-date return of 10.23% lags behind the S&P 500's 14.18%, suggesting that while it has historically performed well, its current valuation may not be justified in light of recent market trends.