McDonald's Corporation

SWX:MCD Stock Report

Market Cap: CHF 188.3b

McDonald's Valuation

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

Below Fair Value: MCD (CHF260) is trading below our estimate of fair value (CHF303.4)

Significantly Below Fair Value: MCD 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 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 Ratio25.2x
EarningsUS$8.25b
Market CapUS$207.74b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.4x
SBUX Starbucks
27.5x10.1%US$103.5b
3690 Meituan
26.6x18.1%HK$899.6b
CMG Chipotle Mexican Grill
55.4x14.8%US$82.2b
CPG Compass Group
40.3x16.9%UK£45.2b
MCD McDonald's
25.2x6.6%CHF 207.7b

Price-To-Earnings vs Peers: MCD is good value based on its Price-To-Earnings Ratio (25.2x) compared to the peer average (37.4x).

Price to Earnings Ratio vs Industry

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

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MCD 25.2xIndustry Avg. 17.3xNo. of Companies15PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MCD is expensive based on its Price-To-Earnings Ratio (25.2x) compared to the European Hospitality industry average (17.3x).

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 Ratio25.2x
Fair PE Ration/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?

The above table shows the analyst MCD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 260.00
CHF 287.52
+10.6%
6.6%CHF 321.94CHF 250.40n/a32
Dec ’25CHF 260.00
CHF 280.31
+7.8%
6.6%CHF 313.87CHF 244.12n/a32
Nov ’25CHF 260.00
CHF 278.08
+7.0%
6.6%CHF 311.83CHF 242.53n/a32
Oct ’25CHF 260.00
CHF 257.16
-1.1%
7.1%CHF 306.09CHF 218.52n/a32
Sep ’25CHF 260.00
CHF 248.97
-4.2%
6.4%CHF 287.82CHF 216.28n/a31
Aug ’25CHF 260.00
CHF 257.60
-0.9%
6.3%CHF 298.78CHF 224.52n/a31
Jul ’25CHF 260.00
CHF 277.41
+6.7%
5.7%CHF 319.34CHF 254.93n/a31
Jun ’25CHF 260.00
CHF 284.68
+9.5%
6.3%CHF 325.60CHF 259.93n/a30
May ’25CHF 260.00
CHF 290.49
+11.7%
6.2%CHF 328.13CHF 261.95n/a31
Apr ’25CHF 260.00
CHF 294.62
+13.3%
4.7%CHF 322.91CHF 262.31n/a31
Mar ’25CHF 260.00
CHF 286.66
+10.3%
4.5%CHF 313.67CHF 262.71n/a32
Feb ’25CHF 260.00
CHF 278.52
+7.1%
6.4%CHF 329.91CHF 241.19n/a33
Jan ’25CHF 260.00
CHF 270.24
+3.9%
6.3%CHF 327.97CHF 239.77CHF 260.0034
Dec ’24CHF 260.00
CHF 269.98
+3.8%
7.2%CHF 335.36CHF 236.41CHF 260.0033
Nov ’24CHF 260.00
CHF 279.36
+7.4%
7.4%CHF 347.70CHF 245.11CHF 260.0033
Oct ’24CHF 260.00
CHF 295.44
+13.6%
5.3%CHF 344.36CHF 256.24CHF 260.0032
Sep ’24CHF 260.00
CHF 289.35
+11.3%
5.1%CHF 337.91CHF 251.44CHF 260.0032
Aug ’24CHF 260.00
CHF 285.41
+9.8%
5.4%CHF 334.02CHF 248.55CHF 260.0033
Jul ’24CHF 260.00
CHF 286.14
+10.1%
5.0%CHF 313.26CHF 235.40CHF 260.0033
Jun ’24CHF 250.00
CHF 286.61
+14.6%
5.0%CHF 313.52CHF 235.59CHF 260.0032
May ’24CHF 250.00
CHF 280.83
+12.3%
5.4%CHF 309.25CHF 232.39CHF 260.0033
Apr ’24CHF 250.00
CHF 269.48
+7.8%
6.0%CHF 303.24CHF 220.54CHF 260.0032
Mar ’24CHF 250.00
CHF 269.95
+8.0%
5.8%CHF 303.02CHF 221.72CHF 260.0033
Feb ’24CHF 202.00
CHF 265.92
+31.6%
5.9%CHF 298.07CHF 218.10CHF 260.0032
Jan ’24CHF 202.00
CHF 268.33
+32.8%
6.3%CHF 303.96CHF 228.90CHF 260.0033

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 07:13
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

McDonald's Corporation is covered by 67 analysts. 31 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jim MarroneAccountability Research Corporation
John StaszakArgus Research Company
David TarantinoBaird