MasterCard Inc.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
SunTrust Robinson Humphrey Andrew Jeffrey andrew.jeffrey@suntrust.com
Nomura Research Bill Carcache bill.carcache@nomura.com
Deutsche Bank Research Bryan Keane bryan.keane@db.com
Stifel Nicolaus Christopher C. Brendler ccbrendler@stifel.com
Atlantic Equities Christopher Hickey c.hickey@atlantic-equities.com
Sandler O’Neill & Partners Christopher R. Donat cdonat@sandleroneill.com
RBC Capital Markets Daniel Perlin daniel.perlin@rbccm.com
Evercore ISI David Togut david.togut@evercoreisi.com
Guggenheim Securities Eric Wasserstrom eric.wasserstrom@guggenheimpartners.com
Cowen & Company Georgios Mihalos george.mihalos@cowen.com
Wedbush Securities Gil Luria gil.luria@wedbush.com
Oppenheimer Glenn Greene glenn.greene@opco.com
BMO Capital Markets James Fotheringham james.fotheringham@bmo.com
Susquehanna Financial Group James Friedman james.friedman@sig.com
Piper Jaffray Jason Deleeuw jason.s.deleeuw@pjc.com
Jefferies Jason Kupferberg jkupferberg@jefferies.com
Compass Point Research John T. Williams jwilliams@compasspointllc.com
Pacific Crest Securities-KBCM Josh Beck jbeck@pacific-crest.com
Bernstein Research Lisa D. Ellis lisa.ellis@bernstein.com
CRT Capital Group Moshe Katri mkatri@sterneageecrt.com
Credit Suisse Moshe Orenbuch moshe.orenbuch@credit-suisse.com
William Blair Robert Napoli bnapoli@williamblair.com
Keefe Bruyette & Woods Sanjay Sakhrani ssakhrani@kbw.com
Wells Fargo Securities Timothy Willi timothy.willi@wellsfargo.com
Raymond James Wayne Johnson wayne.johnson@raymondjames.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form

Net Operating Profit Less Adjusted Taxes NOPLAT 3,254 3,825 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 3,866 4,269 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 14 81 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 10,000 11,469 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC  32.54% 33.35% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 1,259  1,842 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR  38.69% 48.16% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
WACCMarket  2.80%  2.42% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook  10.30%  8.71%
Enterprise value
EVMarket  104,509  107,712 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  103,063  107,987
Long-Run Growth
g = IR x ROIC
 12.59%  16.06% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP   2.50%   2.50%
Margin from Operations M   51.78%  54.60% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D   6.81%  5.96% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution

12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

 10.81  10.00 -0.34%  -1.27%  -1.01%  -0.90%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

19.45 17.21 -0.34% -1.27% -1.01% c-0.90%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

32.12 28.16 -0.34% -1.27% -1.01% -0.90%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

27.03 25.23 -0.34% -1.27% -1.01% -0.90%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

20.88 18.31 -0.34% -1.27% -1.01% -0.90%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

c10.45 9.39 -0.34% -1.27% -1.01% -0.90%

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