Is Mastercard, Inc. overvalued or undervalued?

As of 7 November 2025, Mastercard, Inc. has moved from a fair to an expensive valuation grade. The company is currently overvalued, as indicated by its high 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 more reasonable P/E of 30.36, while PayPal Holdings, Inc. stands out with a very attractive P/E of 15.30.
Despite its strong performance metrics, such as a remarkable ROE of 206.96% and a ROCE of 98.17%, Mastercard's valuation ratios suggest it is trading at a premium compared to its peers. Over the past year, Mastercard has returned 5.37%, which is lower than the S&P 500's return of 12.65%, reinforcing the notion that the stock may be overvalued relative to broader market performance.