McDonalds Stock Alpha and Beta Analysis


USD 271.59  0.31  0.11%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as McDonalds. It also helps investors analyze the systematic and unsystematic risks associated with investing in McDonalds over a specified time horizon. Remember, high McDonalds' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, see McDonalds Backtesting, McDonalds Valuation, McDonalds Correlation, McDonalds Hype Analysis, McDonalds Volatility, McDonalds History and analyze McDonalds Performance.
Please note that although McDonalds alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, McDonalds did 0.06  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of McDonalds stock's relative risk over its benchmark. McDonalds has a beta of 0.46  . Let's try to break down what McDonalds's beta means in this case. As returns on the market increase, McDonalds returns are expected to increase less than the market. However, during the bear market, the loss on holding McDonalds will be expected to be smaller as well.
As of December 6, 2022, Book Value per Share is expected to decline to -6.33. In addition to that, Enterprise Value over EBIT is expected to decline to 22.74.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Enterprise Value

215.54 Billion

McDonalds Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. McDonalds market risk premium is the additional return an investor will receive from holding McDonalds long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in McDonalds. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate McDonalds' performance over market.
α0.06   β0.46
90 days against NYA

McDonalds expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of McDonalds' Buy-and-hold return. Our buy-and-hold chart shows how McDonalds performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

McDonalds Market Price Analysis

Market price analysis indicators help investors to evaluate how McDonalds stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading McDonalds shares will generate the highest return on investment. By understating and applying McDonalds stock market price indicators, traders can identify McDonalds position entry and exit signals to maximize returns.

McDonalds Return and Market Media

The median price of McDonalds for the period between Wed, Sep 7, 2022 and Tue, Dec 6, 2022 is 255.17 with a coefficient of variation of 5.66. The daily time series for the period is distributed with a sample standard deviation of 14.54, arithmetic mean of 256.76, and mean deviation of 12.52. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
The 3 Best Dividend Stocks to Buy for Retirement - InvestorP...09/29/2022
EPS Estimate09/30/2022
Acquisition by Lloyd Dean of 124 shares of McDonalds Corp su...10/04/2022
The Happy Meal Grows Up McDonalds Stock Breakdown - Money an...10/10/2022
Dows rally is unanimous, with Goldman and McDonalds stocks p...10/13/2022
McDonalds Has Announced That It Will Be Increasing Its Divid...10/18/2022
Stock Market Today Dow, SP Live Updates for Oct. 25 - Bloomb...10/24/2022
EPS Reported10/27/2022
MCDONALDS CORP Managements Discussion and Analysis of Financ...11/07/2022
McDonalds breaks out to a new high. A time to buy the stock ...11/10/2022
EPS Estimate12/02/2022

About McDonalds Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including McDonalds or other stocks. Alpha measures the amount that position in McDonalds has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2021 2022 (projected)
Long Term Debt to Equity3.063.31
Interest Coverage8.511.19

McDonalds Upcoming Company Events

As portrayed in its financial statements, the presentation of McDonalds' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, McDonalds' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of McDonalds' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of McDonalds. Please utilize our Beneish M Score to check the likelihood of McDonalds' management manipulating its earnings.
Upcoming Quarterly Report27th of January 2022
Next Financial Report5th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End27th of January 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with McDonalds

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see McDonalds Backtesting, McDonalds Valuation, McDonalds Correlation, McDonalds Hype Analysis, McDonalds Volatility, McDonalds History and analyze McDonalds Performance. Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Complementary Tools for McDonalds Stock analysis

When running McDonalds price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
McDonalds technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of McDonalds technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of McDonalds trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...