MCD Relative Valuation
MCD's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MCD is overvalued; if below, it's undervalued.
Historical Valuation
McDonald's Corp (MCD) is now in the Fair zone, suggesting that its current forward PE ratio of 23.82 is considered Fairly compared with the five-year average of 24.28. The fair price of McDonald's Corp (MCD) is between 306.44 to 341.57 according to relative valuation methord.
Relative Value
Fair Zone
306.44-341.57
Current Price：308.54
Fair
23.82
PE
1Y
3Y
5Y
Trailing
Forward
17.70
EV/EBITDA
McDonald's Corp. (MCD) has a current EV/EBITDA of 17.70. The 5-year average EV/EBITDA is 18.11. The thresholds are as follows: Strongly Undervalued below 16.32, Undervalued between 16.32 and 17.22, Fairly Valued between 19.01 and 17.22, Overvalued between 19.01 and 19.90, and Strongly Overvalued above 19.90. The current Forward EV/EBITDA of 17.70 falls within the Historic Trend Line -Fairly Valued range.
20.70
EV/EBIT
McDonald's Corp. (MCD) has a current EV/EBIT of 20.70. The 5-year average EV/EBIT is 21.29. The thresholds are as follows: Strongly Undervalued below 18.92, Undervalued between 18.92 and 20.10, Fairly Valued between 22.48 and 20.10, Overvalued between 22.48 and 23.66, and Strongly Overvalued above 23.66. The current Forward EV/EBIT of 20.70 falls within the Historic Trend Line -Fairly Valued range.
7.88
PS
McDonald's Corp. (MCD) has a current PS of 7.88. The 5-year average PS is 7.81. The thresholds are as follows: Strongly Undervalued below 6.85, Undervalued between 6.85 and 7.33, Fairly Valued between 8.29 and 7.33, Overvalued between 8.29 and 8.77, and Strongly Overvalued above 8.77. The current Forward PS of 7.88 falls within the Historic Trend Line -Fairly Valued range.
20.60
P/OCF
McDonald's Corp. (MCD) has a current P/OCF of 20.60. The 5-year average P/OCF is 20.47. The thresholds are as follows: Strongly Undervalued below 16.41, Undervalued between 16.41 and 18.44, Fairly Valued between 22.49 and 18.44, Overvalued between 22.49 and 24.52, and Strongly Overvalued above 24.52. The current Forward P/OCF of 20.60 falls within the Historic Trend Line -Fairly Valued range.
26.98
P/FCF
McDonald's Corp. (MCD) has a current P/FCF of 26.98. The 5-year average P/FCF is 25.75. The thresholds are as follows: Strongly Undervalued below 20.53, Undervalued between 20.53 and 23.14, Fairly Valued between 28.36 and 23.14, Overvalued between 28.36 and 30.97, and Strongly Overvalued above 30.97. The current Forward P/FCF of 26.98 falls within the Historic Trend Line -Fairly Valued range.
McDonald's Corp (MCD) has a current Price-to-Book (P/B) ratio of -101.58. Compared to its 3-year average P/B ratio of -49.03 , the current P/B ratio is approximately 107.17% higher. Relative to its 5-year average P/B ratio of -41.11, the current P/B ratio is about 147.12% higher. McDonald's Corp (MCD) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.20%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.29% , the current FCF yield is about -100.00% lower.
-101.58
P/B
Median3y
-49.03
Median5y
-41.11
3.36
FCF Yield
Median3y
3.20
Median5y
3.29
Competitors Valuation Multiple
The average P/S ratio for MCD's competitors is , providing a benchmark for relative valuation. McDonald's Corp Corp (MCD) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 2.98%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MCD increased by 7.69% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 24.69 to 26.33.
The secondary factor is the Revenue Growth, contributed 2.98%to the performance.
Overall, the performance of MCD in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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