But we think they can increase production, and that because they only run their factory at about 35% capacity, incremental production will have gross profit margins of 70% to 80%, leading to a large increase in profit margins and earnings power. Rotonti : Over the past three years, from 2016 through 2018, Mastercard's constant currency organic revenue grew at a 15% compounded annual growth rate ( CAGR ), and EPS achieved a whopping 28% CAGR. According to S&P Global, over those three years, Mastercard generated an average ROIC of about 40%. And over the next three years, 2019 through 2021, Mastercard expects a constant-currency organic revenue CAGR in the "low teens" and EPS growth in the "high teens." This financial profile is next-level amazing. But does it justify Mastercard's stock selling at a next-12-month P/E of nearly 30? Stannard-Stockton : Yes. Mastercard's financial profile truly is "next-level amazing." But a P/E ratio isn't justified because a company is "amazing."