McDonald's Valuation

Q: What is the Fair Price of MCD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MCD (ARS13500) is trading above our estimate of [[fair value]] (ARS12558.59)

Is MCD undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCD when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCD (ARS13500) is trading above our estimate of fair value (ARS12558.59)

Significantly Below Fair Value: MCD is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCD?

Key metric: As MCD is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MCD. This is calculated by dividing MCD's market cap by their current earnings.
What is MCD's PE Ratio?
PE Ratio	25.3x
Earnings	US$8.25b
Market Cap	US$208.61b

MCD key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	10.1x
Enterprise Value/EBITDA	18.8x
PEG Ratio	3.8x

Price to Earnings Ratio vs Peers

How does MCD's PE Ratio compare to its peers?

The above table shows the PE ratio for MCD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	41.6x
SBUX Starbucks	29.6x	10.5%	US$111.5b
3690 Meituan	42.1x	28.6%	HK$1.0t
CMG Chipotle Mexican Grill	54x	15.5%	US$80.1b
HAVA Havanna Holding	40.8x	n/a	AR$278.1b
MCD McDonald's	25.3x	6.6%	AR$208.6b

Price-To-Earnings vs Peers: MCD is good value based on its Price-To-Earnings Ratio (25.3x) compared to the peer average (41.6x).

Price to Earnings Ratio vs Industry

How does MCD's PE Ratio compare vs other companies in the South American Hospitality Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MCD is expensive based on its Price-To-Earnings Ratio (25.3x) compared to the South American Hospitality industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is MCD's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	25.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MCD's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.