McDonald's Corporation

XTRA:MDO Stock Report

Mkt Cap: €184.7b

We’ve recently updated our valuation analysis.

McDonald's Valuation

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

Valuation Score

0/6

Valuation Score 0/6

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

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/Revenue10.6x
Enterprise Value/EBITDA20.2x
PEG Ratio3.2x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average35.8x
SBUX Starbucks
34.2x14.7%US$113.5b
CMG Chipotle Mexican Grill
50.8x17.7%US$45.7b
YUM Yum! Brands
27.2x8.4%US$36.0b
CPG Compass Group
31.4x13.2%UK£35.0b
MDO McDonald's
32.7x10.1%€200.3b

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a56.7%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a56.7%
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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 Ratio32.7x
Fair PE Ratio70.4x

Price-To-Earnings vs Fair Ratio: MDO is good value based on its Price-To-Earnings Ratio (32.7x) compared to the estimated Fair Price-To-Earnings Ratio (70.4x).

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.

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 MDO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€254.40
€272.44
+7.1%
5.9%€306.70€223.06n/a33
Mar ’24€246.25
€273.61
+11.1%
5.7%€307.14€224.74n/a34
Feb ’24€242.85
€266.38
+9.7%
5.9%€298.58€218.47n/a32
Jan ’24€249.95
€272.78
+9.1%
6.3%€309.01€232.70n/a33
Dec ’23€259.85
€279.15
+7.4%
6.2%€317.34€238.97n/a34
Nov ’23€276.15
€291.15
+5.4%
6.2%€332.07€250.06n/a34
Oct ’23€239.00
€293.35
+22.7%
6.8%€341.87€244.94n/a34
Sep ’23€257.15
€282.12
+9.7%
6.6%€327.41€234.58n/a32
Aug ’23€257.80
€275.13
+6.7%
7.0%€321.11€230.07n/a31
Jul ’23€240.15
€266.24
+10.9%
6.4%€300.69€217.38n/a31
Jun ’23€233.90
€258.93
+10.7%
6.9%€292.84€211.70n/a31
May ’23€239.25
€265.68
+11.0%
5.9%€297.73€215.24n/a32
Apr ’23€224.00
€251.87
+12.4%
6.0%€281.53€224.15n/a32
Mar ’23€216.20
€250.12
+15.7%
5.6%€276.89€220.45€246.2533
Feb ’23€227.60
€251.45
+10.5%
5.5%€278.64€221.85€242.8533
Jan ’23€237.70
€242.57
+2.0%
6.3%€276.79€204.51€249.9533
Dec ’22€221.20
€241.43
+9.1%
5.5%€272.34€206.48€259.8532
Nov ’22€216.40
€234.43
+8.3%
5.4%€264.72€200.70€276.1533
Oct ’22€208.60
€226.45
+8.6%
4.7%€247.52€198.01€239.0033
Sep ’22€200.30
€225.00
+12.3%
5.3%€250.10€196.69€257.1533
Aug ’22€206.00
€222.10
+7.8%
5.2%€248.10€195.11€257.8033
Jul ’22€195.25
€214.94
+10.1%
4.9%€237.38€188.73€240.1532
Jun ’22€191.25
€209.38
+9.5%
4.9%€231.55€184.10€233.9032
May ’22€195.00
€211.70
+8.6%
5.0%€228.80€187.20€239.2534
Apr ’22€191.25
€205.72
+7.6%
5.0%€225.89€177.48€224.0032
Mar ’22€173.52
€198.17
+14.2%
4.9%€218.94€172.03€216.2032

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