Mastercard Incorporated Z Score vs. Net Income
| M4I Stock | 501.50 1.40 0.28% |
For Mastercard Incorporated profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Mastercard Incorporated to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Mastercard Incorporated utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Mastercard Incorporated's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Mastercard Incorporated over time as well as its relative position and ranking within its peers.
Mastercard |
Mastercard Incorporated Net Income vs. Z Score Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Mastercard Incorporated's current stock value. Our valuation model uses many indicators to compare Mastercard Incorporated value to that of its competitors to determine the firm's financial worth. Mastercard Incorporated is considered to be number one stock in z score category among its peers. It also is considered to be number one stock in net income category among its peers making up about 752,272,727 of Net Income per Z Score. Comparative valuation analysis is a catch-all model that can be used if you cannot value Mastercard Incorporated by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Mastercard Incorporated's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Mastercard Net Income vs. Z Score
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Mastercard Incorporated |
| = | 13.2 |
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Mastercard Incorporated |
| = | 9.93 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Mastercard Net Income Comparison
Mastercard Incorporated is currently under evaluation in net income category among its peers.
Mastercard Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Mastercard Incorporated. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Mastercard Incorporated position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Mastercard Incorporated's important profitability drivers and their relationship over time.
Use Mastercard Incorporated in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Mastercard Incorporated position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mastercard Incorporated will appreciate offsetting losses from the drop in the long position's value.Mastercard Incorporated Pair Trading
Mastercard Incorporated Pair Trading Analysis
The ability to find closely correlated positions to Mastercard Incorporated could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Mastercard Incorporated when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Mastercard Incorporated - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Mastercard Incorporated to buy it.
The correlation of Mastercard Incorporated is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Mastercard Incorporated moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Mastercard Incorporated moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Mastercard Incorporated can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Mastercard Incorporated position
In addition to having Mastercard Incorporated in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Mastercard Stock
To fully project Mastercard Incorporated's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Mastercard Incorporated at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Mastercard Incorporated's income statement, its balance sheet, and the statement of cash flows.