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Mastercard Incorporated (MA) — WACC Analysis

WACC Breakdown

Mastercard Incorporated (MA) has a weighted average cost of capital (WACC) of 8.3%. The cost of equity is 8.6%, derived from a beta of 0.87 and a risk-free rate of 4.7%. The after-tax cost of debt is 2.4%. The capital structure is 95.4% equity and 4.6% debt.

Interpretation

A WACC of 8.3% is moderate, reflecting the market's balanced risk assessment of Mastercard Incorporated.

Investors can compare MA's WACC of 8.3% against industry peers to gauge its relative financing costs. A beta of 0.87 reflects the stock's volatility relative to the broader market.

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VALUATION

MA WACC: 8.32% for Mastercard Incorporated

Current inputs imply a 8.60% cost of equity and a 3.04% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Mastercard Incorporated Common Stock (MA) WACC Results
Weighted Average Cost of Capital
8.32%
Cost of Equity
8.60%
Risk-Free Rate4.74%
Beta0.87
Market Risk Premium4.23%
Cost of Debt
2.40%
Pre-Tax Cost of Debt3.04%
Tax Rate21.00%
Tax Shield0.64%
Capital Structure
Equity: 95.38%($508.64B)
Debt: 4.62%($24.64B)
Equity Component
8.21%
95.38% × 8.60%
Debt Component
0.11%
4.62% × 2.40%

Mastercard Incorporated (MA) WACC in context

Mastercard Incorporated (MA) currently screens with an estimated WACC of 8.32%. That blends a 8.60% cost of equity, a 3.04% pre-tax cost of debt, and a 95.38% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What MA WACC implies

A 8.32% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates MA

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.87 and equity accounts for 95.38% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.

MA WACC: 8.32% — Mastercard Incorporated Cost of Capital (August 2026) | DeepViews