MasterCard

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Analyst Listing       Primary Input Data
Derived Input Data       Valuation Model Outcomes

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
EV/EBIT Multiple \frac{EV_{Market}}{EBIT}  20.88  18.31 EV/EBIT\,=\,\frac { EV}{ EBIT}
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%

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Valuation Model Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs and, depending on the equational form of any particular valuation model, may result in irrelevant or implausible results.  For example, in the event WACC < g, the value of this term, often found in the denominator of an equation’s continuation value term, will be expressly negative and may result in a negative overall valuation for the firm.  In the event of a WACC < g relation, the model form as applied to the subject firm offers an irrelevant outcome.

Valuation Model Type

Label

Equational form
Key Value Driver (NOPLAT) KVD (NOPLAT) { Value }_{ DCF/KVD }=\sum { \frac { NOPLAT_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Key Value Driver (FCF) KVD (FCF)
{ Value }_{ DCF/KVD }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { NOPLAT }_{ 1 }\left( 1-\frac { g }{ ROIC } \right) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Free Cash Flow FCF { Value }_{ DCF/FCF }=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Economic Profit ECON π { Value }_{ { ECON\pi } }= I{ C }_{ 0 }+\sum { \frac { { IC }_{ t-1 }(ROI{ C }_{t}-WAC{C}_{t}) }{ { \left( 1+WACC \right) }^{ t } }+ \frac {\frac { I{C}_{0}\ x\ (ROI{C}_{1}\ -\ WAC{C}_{1}) }{ WACC-g } }{ { \left( 1+WACC \right) }^{ t } } }
 
Adjusted Present Value APV { Value }_{ APV }=\sum { \frac { FCF_{ t } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } +\frac { \frac { { FCF }_{ 1 }}{ { k }_{ u }-g } }{ { \left( 1+{ k }_{ u } \right) }^{ t } } } +\sum { \frac { { TS }_{ t } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } +\frac { \frac { { TS }_{ 1 }}{ { k }_{ tax }-g } }{ { \left( 1+{ k }_{ tax } \right) }^{ t } } }
 
Forward Market Multiple FMM { Value }_{ DCF/FMM}=\sum { \frac { FCF_{ t } }{ { \left( 1+WACC \right) }^{ t } } +\frac { { EBIT }_{ 1 }\,{x}\,{FMM}}{ { \left( 1+WACC \right) }^{ t } } }{\,\,\,; \,\,FMM\,=\,\frac{{EV}_{t=0}}{{EBIT}_{t=0}}}
 

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