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What Is the Fair Market Value of MasterCard?

By David Hanson and Matt Koppenheffer – Feb 10, 2014 at 2:03PM

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Does MasterCard's growth prospects make it worth its lofty multiples, or is it just too expensive to touch today?

In this segment of The Motley Fool's all-financials show Where the Money Is, Fool financial analysts Matt Koppenheffer and David Hanson take a question from a Fool reader on Facebook who writes, "What is the fair market value of MasterCard (MA -0.20%)?"

Matt and David discuss why precise valuation models depend on predicted future data that makes them almost inherently wrong and why a general picture of MasterCard's revenue growth and prospects as a company can be much more useful in deciding whether this is "a good company at a fair price," as Warren Buffett would say, or a stock that's gotten a bit too far ahead of itself.

David Hanson and Matt Koppenheffer have no position in any stocks mentioned. The Motley Fool recommends and owns shares of MasterCard. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Mastercard Stock Quote
$360.06 (-0.20%) $0.74

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