McDonald's Valuation

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

MDO (€230.2) is trading below our estimate of [[fair value]] (€242.08)

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

Valuation Score

2/6

Valuation Score 2/6

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 MDO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MDO (€230.2) is trading below our estimate of fair value (€242.08)

Significantly Below Fair Value: MDO is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MDO. This is calculated by dividing MDO's market cap by their current earnings.
What is MDO's PE Ratio?
PE Ratio	27.3x
Earnings	US$8.31b
Market Cap	US$227.08b

MDO 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	10.8x
Enterprise Value/EBITDA	20.2x
PEG Ratio	4.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MDO 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	39.4x
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
CPG Compass Group	32.1x	12.1%	UK£44.6b
MDO McDonald's	27.3x	6.3%	€227.1b

Price-To-Earnings vs Peers: MDO is good value based on its Price-To-Earnings Ratio (27.3x) compared to the peer average (40.2x).

Price to Earnings Ratio vs Industry

How does MDO's PE Ratio compare vs other companies in the European Hospitality Industry?

10 Companies	Price / Earnings	Estimated Growth	Market Cap

10 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MDO is expensive based on its Price-To-Earnings Ratio (27.3x) compared to the European Hospitality industry average (17.9x).

Price to Earnings Ratio vs Fair Ratio

What is MDO'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.

MDO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MDO'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.