MAMastercard Incorporated

$622.62Data updated: 2026-10-21 (ET)

SScore MMoat DDCF

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DCF CalculatorMastercard Incorporated

Inputs

Quick Fill (Ticker)

Mastercard Incorporated · $622.62

Annual Free Cash Flow (B$)· loaded from MA

Growth Rate (%) Years 1–3

📜 Buffett on Growth

“Compound interest is the eighth wonder of the world. He who understands it, earns it.”

— 1965 Letter to Shareholders · Compounding

Discount Rate (%) Buffett uses 10%

📜 Buffett on Discount Rate

“Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life. We use the risk-free rate as our discount rate.”

— 1992 Letter to Shareholders · Intrinsic Value

Terminal Growth (%) Typically 2.5%

📜 Buffett on Long-term Holding

“Our favorite holding period is forever. When we own portions of outstanding businesses with outstanding managements, our preferred holding period is forever.”

— 1988 Letter to Shareholders · Long-term Holding

💡 Buffett Standard: Discount rate 10% = risk-free rate (treasury bonds)
Terminal growth 2.5% ≈ long-term nominal GDP growth

Results

Intrinsic Value per ShareYour Parameters

$457.74

Based on your DCF parameters · Standard $406.0B · Floor(OE) $12.6B

Total Intrinsic Value

$406.0B

Enterprise value − net debt

Margin of Safety· price $622.62

-26.5%

Assumed Price$622.62

Sum of Discounted FCF$61.2B

Discounted Terminal Value$154.7B

Historical FCF Trend (B$)

FCF Forecast (B USD)

FCF Forecast

Discounted Value

Year-by-Year FCF Detail

Year	FCF (B$)	Discounted Value (B$)
Year 1	$13.8B	$12.6B
Year 2	$15.2B	$12.6B
Year 3	$16.7B	$12.6B
Year 4	$17.8B	$12.1B
Year 5	$18.2B	$11.3B
Terminal Value	—	$154.7B
Total	—	$215.9B

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Buffett's Valuation Wisdom

References from Buffett's 60 years of letters

“Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life. We use the risk-free rate as our discount rate.”

— 1992 Letter to Shareholders · Intrinsic Value

“Compound interest is the eighth wonder of the world. He who understands it, earns it.”

— 1965 Letter to Shareholders · Compounding

“Our favorite holding period is forever. When we own portions of outstanding businesses with outstanding managements, our preferred holding period is forever.”

— 1988 Letter to Shareholders · Long-term Holding

“Intrinsic value is an estimate rather than a precise figure. Two people looking at the same set of facts will almost inevitably come up with slightly different intrinsic value figures.”

— 1969 Letter to Shareholders · Intrinsic Value

“The three most important words in investing are: margin of safety. You don't try to buy businesses worth $100 million for $80 million.”

— 1969 Letter to Shareholders · Margin of Safety

Related Concepts

Intrinsic Value Margin of Safety Owner Earnings Compounding

DCF Formula

Intrinsic Value = Σ FCFₜ/(1+r)ᵗ + TV/(1+r)ⁿ

r = discount rate
TV = terminal value
n = forecast period (5 years)

Owner Earnings = Net Income + D&A − CapEx

Simplified IV = OE × (8.5 + 2g)

→ Learn Intrinsic Value Concept

⚠️ Disclaimer

DCF is a valuation tool, not exact science. Intrinsic value is highly sensitive to assumptions. Do not use results as sole basis for investment.

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Inputs

Quick Fill (Ticker)

Mastercard Incorporated · $622.62

Annual Free Cash Flow (B$)· loaded from MA

Growth Rate (%) Years 1–3

📜 Buffett on Growth

“Compound interest is the eighth wonder of the world. He who understands it, earns it.”

— 1965 Letter to Shareholders · Compounding

Discount Rate (%) Buffett uses 10%

📜 Buffett on Discount Rate

“Intrinsic value is the discounted value of the cash that can be taken out of a business during its remaining life. We use the risk-free rate as our discount rate.”

— 1992 Letter to Shareholders · Intrinsic Value

Terminal Growth (%) Typically 2.5%

📜 Buffett on Long-term Holding

“Our favorite holding period is forever. When we own portions of outstanding businesses with outstanding managements, our preferred holding period is forever.”

— 1988 Letter to Shareholders · Long-term Holding

💡 Buffett Standard: Discount rate 10% = risk-free rate (treasury bonds)
Terminal growth 2.5% ≈ long-term nominal GDP growth

Year

FCF (B$)

Discounted Value (B$)

Year 1

$13.8B

$12.6B

Year 2

$15.2B

$12.6B

Year 3

$16.7B

$12.6B

Year 4

$17.8B

$12.1B

Year 5

$18.2B

$11.3B

Terminal Value

—

$154.7B

Total

—

$215.9B