McDonalds Stock Valuation

MCD
 Stock
  

USD 259.23  1.41  0.54%   

What is the value of McDonalds Corp today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as McDonalds Corp, is its stock price multiplied by the total number of shares outstanding, calculating McDonalds Corp's enterprise value requires a different approach. It uses McDonalds Corp's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
As of August 7, 2022, Free Cash Flow is expected to decline to about 6.5 B. In addition to that, Enterprise Value is expected to decline to about 215.5 B.
McDonalds Corp secures a last-minute Real Value of $284.17 per share. The latest price of the firm is $259.23. At this time, the firm appears to be undervalued. Our model forecasts the value of McDonalds Corp from reviewing the firm fundamentals such as profit margin of 25.77 %, and Return On Equity of (0.0001) % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we recommend purchasing undervalued stocks and exiting overvalued stocks since, at some point in time, asset prices and their ongoing real values will merge together.
  
McDonalds Corp Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as McDonalds Corp's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

McDonalds Most Recent Valuation Data

EPS Estimate Next Quarter
2.66
Price Sales
8.13
Forward Annual Dividend Yield
0.0211
EBITDA
10.8 B
Dividend Share
5.43
Ex Dividend Date
2022-08-31
Beta
0.56
Undervalued
Today 259.23
Please note that McDonalds Corp's price fluctuation is very steady at this time. Calculation of the real value of McDonalds Corp is based on 3 months time horizon. Increasing McDonalds Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for McDonalds Corp is useful when determining the fair value of the McDonalds stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of McDonalds Corp. Since McDonalds Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of McDonalds Stock. However, McDonalds Corp's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
233.31
Downside
284.17
Real Value
285.43
Upside
Estimating the potential upside or downside of McDonalds Corp helps investors to forecast how McDonalds stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of McDonalds Corp more accurately as focusing exclusively on McDonalds Corp's fundamentals will not take into account other important factors:
Earnings
Estimates (11)
LowProjected EPSHigh
9.279.419.90
Details
Hype
Prediction
LowEstimated ValueHigh
258.07259.33260.59
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
3.413.473.53
Details
24 Analysts
Consensus
LowTarget PriceHigh
237.00275.29314.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use McDonalds Corp's intrinsic value based on its ongoing forecasts of McDonalds Corp's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against McDonalds Corp's closest peers. When choosing an evaluation method for McDonalds Corp, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

McDonalds Corp Investments

1.11 Billion

McDonalds Valuation Drivers Correlation

Many accounts on the financial statements of McDonalds Corp are highly interrelated and sometimes correlated. Consequently, when conducting McDonalds's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of McDonalds
Click cells to compare fundamentals

McDonalds Valuation Trend

Knowing McDonalds Corp's actual value is paramount for traders to make sound investment determinations. McDonalds Corp's real value is not only important for the investor to make better decisions but also for a more accurate overall view of McDonalds Corp's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both McDonalds Corp's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

McDonalds Market Cap

McDonalds Corp is considered to be number one stock in market capitalization category among related companies. Market capitalization of Restaurants industry is now estimated at about 1.61 Trillion. McDonalds Corp retains roughly 193.83 Billion in market capitalization claiming about 12% of equities listed under Restaurants industry.
Capitalization  Revenue  Workforce  Total debt  Valuation

McDonalds Corp Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining McDonalds Corp's current stock value. Our valuation model uses many indicators to compare McDonalds Corp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across McDonalds Corp competition to find correlations between indicators driving McDonalds Corp's intrinsic value. More Info.
McDonalds Corp is considered to be number one stock in price to sales category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about  19.40  of Price to Book per Price to Sales. As of August 7, 2022, Price to Book Value is expected to decline to -44.68. Comparative valuation analysis is a catch-all model that can be used if you cannot value McDonalds Corp by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for McDonalds Corp's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the McDonalds Corp's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates McDonalds Corp's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in McDonalds Corp and how it compares across the competition.

About McDonalds Corp Valuation

The equity valuation mechanism determines the current worth of McDonalds Corp on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of McDonalds Corp. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of McDonalds Corp based exclusively on its fundamental and basic technical indicators. By analyzing McDonalds Corp's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of McDonalds Corp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of McDonalds Corp. We calculate exposure to McDonalds Corp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to McDonalds Corp's related companies.
Fiscal Year End
December
Industry
Restaurants
Concentration
Restaurants
Full Time Employees
100 K
Service Category
Hotels, Restaurants & Leisure
Employer Id Number
36-2361282
Last ReportedProjected for 2022
Gross Profit12.8 B13 B
Profit Margin 0.33  0.30 
McDonalds Corporation operates and franchises McDonalds restaurants in the United States and internationally. McDonalds Corporation was founded in 1940 and is headquartered in Chicago, Illinois. McDonalds Corp operates under Restaurants classification in the United States and is traded on New York Stock Exchange. It employs 100000 people.

McDonalds Corp Quarterly Enterprise Value

227.8 Billion

McDonalds Corp's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether McDonalds Corp's value is low or high relative to the company's performance and growth projections. Determining the market value of McDonalds Corp can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of McDonalds Corp represents a small ownership stake in the entity. As a stockholder of McDonalds, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

McDonalds Corp Dividends Analysis For Valuation

The current year Dividend Yield is expected to grow to 0.0219, whereas Payment of Dividends and Other Cash Distributions is forecasted to decline to (4.2 B). . McDonalds Corp Price to Earnings Ratio are projected to increase significantly based on the last few years of reporting. The past year's Price to Earnings Ratio were at 26.52. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 12.3 B, whereas Earnings per Basic Share are forecasted to decline to 9.01.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-3.9 B-4.2 B
Dividend Yield 0.02  0.0219 
Dividends per Basic Common Share 5.25  4.97 
There are various types of dividends McDonalds Corp can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of McDonalds shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from McDonalds Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When McDonalds pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of McDonalds Corp by the value of the dividends paid out.

McDonalds Corp Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as McDonalds Corp does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Earnings Quarterly Growth-46.50%
Revenue Growth-2.90%
Payout Ratio66.87%
Enterprise Value To Ebitda22.21
Earnings Growth-45.80%
Enterprise Value To Revenue10.20

McDonalds Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of McDonalds Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value McDonalds we look at many different elements of the entity such as McDonalds's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. McDonalds Corp's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final McDonalds Corp's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as McDonalds Corp, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use McDonalds Corp's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes McDonalds Corp's worth.
Additionally, see Stocks Correlation. Note that the McDonalds Corp information on this page should be used as a complementary analysis to other McDonalds Corp's 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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When running McDonalds Corp price analysis, check to measure McDonalds Corp's 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 Corp is operating at the current time. Most of McDonalds Corp's value examination focuses on studying past and present price action to predict the probability of McDonalds Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move McDonalds Corp's price. Additionally, you may evaluate how the addition of McDonalds Corp to your portfolios can decrease your overall portfolio volatility.
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Is McDonalds Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds Corp. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.46
Market Capitalization
191.7 B
Quarterly Revenue Growth YOY
-0.029
Return On Assets
0.12
The market value of McDonalds Corp is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds Corp's value that differs from its market value or its book value, called intrinsic value, which is McDonalds Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds Corp's market value can be influenced by many factors that don't directly affect McDonalds Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between McDonalds Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine McDonalds Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.