McDonald's Valuation

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 ($237.57) is trading above our estimate of fair value ($207.09)

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?

Other financial metrics that can be useful for relative valuation.

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/Revenue9.8x
Enterprise Value/EBITDA18.3x
PEG Ratio3.5x

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 Average37.7x
SBUX Starbucks
23.9x11.2%US$102.7b
CMG Chipotle Mexican Grill
64.8x15.8%US$79.0b
3690 Meituan
38.5x36.2%HK$578.2b
YUM Yum! Brands
23.7x7.1%US$38.3b
MCD McDonald's
23.8x6.8%US$201.2b

Price-To-Earnings vs Peers: MCD is good value based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (37.7x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.0%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.0%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MCD is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the Global Hospitality industry average (21.3x).


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 Ratio23.8x
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
CurrentUS$237.57
US$326.05
+37.2%
4.5%US$357.00US$299.00n/a31
Mar ’25US$237.57
US$326.26
+37.3%
4.5%US$357.00US$299.00n/a32
Feb ’25US$237.57
US$323.33
+36.1%
6.4%US$383.00US$280.00n/a33
Jan ’25US$237.57
US$315.59
+32.8%
6.3%US$383.00US$280.00n/a34
Dec ’24US$237.57
US$308.33
+29.8%
7.2%US$383.00US$270.00n/a33
Nov ’24US$237.57
US$307.72
+29.5%
7.4%US$383.00US$270.00n/a33
Oct ’24US$237.57
US$328.59
+38.3%
5.3%US$383.00US$285.00n/a32
Sep ’24US$237.57
US$327.97
+38.1%
5.1%US$383.00US$285.00n/a32
Aug ’24US$237.57
US$327.26
+37.8%
5.4%US$383.00US$285.00n/a33
Jul ’24US$237.57
US$316.05
+33.0%
5.0%US$346.00US$260.00n/a33
Jun ’24US$237.57
US$316.30
+33.1%
5.0%US$346.00US$260.00n/a32
May ’24US$237.57
US$314.20
+32.3%
5.4%US$346.00US$260.00n/a33
Apr ’24US$237.57
US$293.27
+23.4%
6.0%US$330.00US$240.00n/a32
Mar ’24US$237.57
US$292.20
+23.0%
5.8%US$328.00US$240.00US$237.5733
Feb ’24US$237.57
US$292.63
+23.2%
5.9%US$328.00US$240.00US$237.5732
Jan ’24US$237.57
US$289.55
+21.9%
6.3%US$328.00US$247.00US$237.5733
Dec ’23US$237.57
US$288.53
+21.5%
6.2%US$328.00US$247.00US$237.5734
Nov ’23US$237.57
US$287.59
+21.1%
6.2%US$328.00US$247.00US$237.5734
Oct ’23US$237.57
US$281.44
+18.5%
6.8%US$328.00US$235.00US$237.5734
Sep ’23US$237.57
US$282.63
+19.0%
6.6%US$328.00US$235.00US$237.5732
Aug ’23US$237.57
US$281.03
+18.3%
7.0%US$328.00US$235.00US$237.5731
Jul ’23US$237.57
US$278.03
+17.0%
6.4%US$314.00US$227.00US$237.5731
Jun ’23US$233.20
US$277.65
+19.1%
6.9%US$314.00US$227.00US$237.5731
May ’23US$264.62
US$280.19
+5.9%
5.9%US$314.00US$227.00US$237.5732
Apr ’23US$264.62
US$280.91
+6.2%
6.0%US$314.00US$250.00US$237.5732
Mar ’23US$264.62
US$283.64
+7.2%
5.6%US$314.00US$250.00US$237.5733

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


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.