MCD PE Ratio & Valuation, Is MCD Overvalued

Historical Valuation

McDonald's Corp (MCD) is now in the Undervalued zone, suggesting that its current forward PE ratio of 23.42 is considered Undervalued compared with the five-year average of 24.31. The fair price of McDonald's Corp (MCD) is between 336.33 to 373.99 according to relative valuation method. Compared to the current price of 330.80 USD , McDonald's Corp By Undervalued By 1.64%.

Relative Value

Fair Zone

336.33-373.99

Current Price：330.80

1.64%

Undervalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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McDonald's Corp (MCD) has a current Price-to-Book (P/B) ratio of -99.85. Compared to its 3-year average P/B ratio of -52.20, the current P/B ratio is approximately 91.29% higher. Relative to its 5-year average P/B ratio of -43.27, the current P/B ratio is about 130.77% higher. McDonald's Corp (MCD) has a Forward Free Cash Flow (FCF) yield of approximately 3.41%. Compared to its 3-year average FCF yield of 3.24%, the current FCF yield is approximately 5.38% lower. Relative to its 5-year average FCF yield of 3.31%, the current FCF yield is about 3.08% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for MCD competitors is 3.81, providing a benchmark for relative valuation. McDonald's Corp Corp (MCD.N) exhibits a P/S ratio of 7.76, which is 103.96% above the industry average. Given its robust revenue growth of 9.72%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of MCD increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of MCD in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is MCD currently overvalued or undervalued?

What is McDonald's Corp (MCD) fair value?

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. The fair price of McDonald's Corp (MCD) is between 336.33 to 373.99 according to relative valuation method.

How does MCD's valuation metrics compare to the industry average?

The average P/S ratio for MCD's competitors is 3.81, providing a benchmark for relative valuation. McDonald's Corp Corp (MCD) exhibits a P/S ratio of 7.76, which is 103.96% above the industry average. Given its robust revenue growth of 9.72%, this premium appears unsustainable.

What is the current P/B ratio for McDonald's Corp (MCD) as of Mar 10 2026?

As of Mar 10 2026, McDonald's Corp (MCD) has a P/B ratio of -99.85. This indicates that the market values MCD at -99.85 times its book value.

What is the current FCF Yield for McDonald's Corp (MCD) as of Mar 10 2026?

As of Mar 10 2026, McDonald's Corp (MCD) has a FCF Yield of 3.41%. This means that for every dollar of McDonald's Corp's market capitalization, the company generates 3.41 cents in free cash flow.

What is the current Forward P/E ratio for McDonald's Corp (MCD) as of Mar 10 2026?

As of Mar 10 2026, McDonald's Corp (MCD) has a Forward P/E ratio of 23.42. This means the market is willing to pay $23.42 for every dollar of McDonald's Corp's expected earnings over the next 12 months.

What is the current Forward P/S ratio for McDonald's Corp (MCD) as of Mar 10 2026?

As of Mar 10 2026, McDonald's Corp (MCD) has a Forward P/S ratio of 7.76. This means the market is valuing MCD at $7.76 for every dollar of expected revenue over the next 12 months.

MCD Valuation