Is Mastercard, Inc. overvalued or undervalued?

As of 7 November 2025, the valuation grade for Mastercard, Inc. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 60, a Price to Book Value of 124.73, and an EV to EBITDA of 47.56, all of which are significantly higher than its peers. For instance, Visa, Inc. has a P/E ratio of 30.36 and an EV to EBITDA of 24.18, while PayPal Holdings, Inc. shows a much lower P/E of 15.30, highlighting Mastercard's premium valuation compared to its competitors.
In terms of performance, Mastercard's year-to-date return of 4.82% lags behind the S&P 500's return of 14.40%, and its 3-year return of 69.77% also trails the benchmark's 76.76%. This underperformance, combined with its high valuation ratios, reinforces the conclusion that Mastercard is overvalued in the current market environment.