McDonald's Valuation
Is MCDS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
2/6Valuation 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 MCDS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MCDS (CA$24.13) is trading below our estimate of fair value (CA$26.55)
Significantly Below Fair Value: MCDS 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 MCDS?
Other financial metrics that can be useful for relative valuation.
What is MCDS's n/a Ratio? | |
---|---|
n/a | 0x |
n/a | n/a |
Market Cap | US$197.37b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 9.6x |
Enterprise Value/EBITDA | 17.9x |
PEG Ratio | 3.5x |
Price to Earnings Ratio vs Peers
How does MCDS's PE Ratio compare to its peers?
Company | Forward PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 13.1x | ||
QSP.UN Restaurant Brands International Limited Partnership | 13.5x | n/a | CA$33.1b |
MTY MTY Food Group | 10.6x | n/a | CA$1.1b |
AW.UN A&W Revenue Royalties Income Fund | 14.2x | n/a | CA$471.5m |
PZA Pizza Pizza Royalty | 14x | n/a | CA$445.9m |
MCDS McDonald's | 22.9x | 6.5% | CA$197.4b |
Price-To-Earnings vs Peers: MCDS is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the peer average (13.1x).
Price to Earnings Ratio vs Industry
How does MCDS's PE Ratio compare vs other companies in the North American Hospitality Industry?
Price-To-Earnings vs Industry: MCDS is expensive based on its Price-To-Earnings Ratio (22.9x) compared to the North American Hospitality industry average (18.5x).
Price to Earnings Ratio vs Fair Ratio
What is MCDS'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.
Fair Ratio | |
---|---|
Current PE Ratio | 22.9x |
Fair PE Ratio | 37.1x |
Price-To-Earnings vs Fair Ratio: MCDS is good value based on its Price-To-Earnings Ratio (22.9x) compared to the estimated Fair Price-To-Earnings Ratio (37.1x).
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.