MA - Embedded Expectations Analysis - 2021 02 09
Mastercard Incorporated (MA:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 43.6x Uniform P/E, suggesting bullish expectations for the firm. However, management may have concerns about transaction growth, tokenization, and trends in the e-commerce industrySpecifically, management may lack confidence in their ability to sustain transaction percentage growth, maintain their gross dollar volumes (GDV) on a local currency basis, and increase non-T&E domestic volumes. In addition, they may have concerns about the progress of their tokenization efforts and the pace of the regulatory approval for their M&A transaction with Nets. Management may also be overstating the impact of their e-commerce promotional activity on cross-border growth, and they may lack confidence in their ability to keep up with trends in the e-commerce industry
Mastercard is a technology company in the global payments industry. The company's solutions enabling consumers to use electronic forms of payment instead of cash and checks. The company provides a range of payment solutions and services using its brands, including Mastercard?, Maestro? and Cirrus?. The company is a multi-rail network that provides customers one partner to turn to for their domestic and cross-border payment needs. The company has additional payment capabilities that include automated clearing house transactions. The company also provides offerings such as cyber and intelligence products, information and analytics services, consulting, loyalty and reward programs and processing.
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