MANILA, Philippines - Global payments giant MasterCard ranked 32nd on Forbes’ list of the world’s most innovative companies.
It is the only company of its kind on the list, which reveals the equity investors’ insights on companies that can be expected to grow profitably, specifically by launching new lines of products or services, or entering new markets.
MasterCard garnered an “innovation premium” of 46.22 percent, which corresponds to the proportion of a company’s market value that cannot be accounted for from the net present value of cash flows of its current products in its current markets. This figure is computed based on a proprietary formula from Credit Suisse HOLT.
In short, investors predict that MasterCard is among those which are expected to generate even greater revenue streams because of its commitment towards innovation.
When discussing the innovation premium methodology, Forbes explains that a company’s perceived strong market value in the stock market is also heavily based on factors such as brand equity and management capability. The more investors trust a company’s brand and management to continue innovating, the higher the company’s likelihood to clinch a spot in the top 100.
Being included in this Forbes list puts MasterCard alongside other big names in the technology industry, such as Salesforce.com, VMWare and Baidu, and other world-class companies like ARM Holdings, Unilever Indonesia, and Amazon.
To be considered in the list, a company must have a market capitalization of $10 billion, provide seven years of public data and spend at least 2.5 percent of revenue on research and development.
MasterCard is known for its strong efforts in introducing innovations in the payments industry, especially in developing secure, seamless and efficient mobile and contactless payment solutions.
The company has also been partnering with financial institutions and other stakeholders in the industry in its campaign to bring about a “World Beyond Cash.”