Mastercard qualifies for the Enterprising Investor but not the Defensive Investor. The Defensive Investor is concerned with the low current ratio, lack of earnings stability over the last ten years, and the high PEmg and PB ratios. The Enterprising Investor has no initial concerns. As a result, Enterprising Investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and comparing it to other opportunities. As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $0.84 in 2010 to an estimated $2.39 for 2014. This level of demonstrated growth supports the market’s implied estimate of 11.92% earnings growth and leads the ModernGraham valuation model, based on Benjamin Graham’s formula, to return an estimate of intrinsic value within a margin of safety relative to the price.