McDonald's Corporation

BATS-CHIXE:MDOD Stock Report

Market Cap: €183.0b

McDonald's Valuation

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

€200.26
Fair Value
28.8% overvalued intrinsic discount
28
Number of Analysts

Below Fair Value: MDOD (€257.9) is trading above our estimate of fair value (€200.26)

Significantly Below Fair Value: MDOD is trading above our estimate of fair value.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MDOD. This is calculated by dividing MDOD's market cap by their current earnings.
What is MDOD's PE Ratio?
PE Ratio25.6x
EarningsUS$8.39b
Market CapUS$214.78b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MDOD vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.5x
CPG Compass Group
39.8x16.21%UK£43.1b
GRG Greggs
11.7x0.04%UK£1.7b
MAB Mitchells & Butlers
8.7x5.04%UK£1.5b
DOM Domino's Pizza Group
9.7x5.03%UK£755.3m
MDOD McDonald's
25.6x7.03%€214.8b

Price-To-Earnings vs Peers: MDOD is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

How does MDOD's PE Ratio compare vs other companies in the GB Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
BOW Bow Street Group
0.7x-63.30%US$15.09m
No more companies available in this PE range
No. of Companies6PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MDOD is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the UK Hospitality industry average (15.8x).


Price to Earnings Ratio vs Fair Ratio

What is MDOD'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.

MDOD PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.6x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: MDOD is good value based on its Price-To-Earnings Ratio (25.6x) compared to the estimated Fair Price-To-Earnings Ratio (28x).


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 MDOD forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€257.90
€283.65
+9.98%
8.58%€324.54€212.95n/a28
Sep ’26n/a
€285.34
0%
8.55%€321.26€215.33n/a28
Aug ’26€263.85
€285.63
+8.25%
8.62%€319.48€218.83n/a28
Jul ’26€249.05
€278.99
+12.02%
7.32%€309.04€220.74n/a28
Jun ’26n/a
€292.43
0%
5.89%€320.61€264.24n/a28
May ’26€278.50
€291.07
+4.51%
5.98%€318.85€258.62n/a29
Apr ’26€289.60
€305.38
+5.45%
6.41%€334.80€260.40n/a31
Mar ’26n/a
€316.61
0%
6.41%€347.11€269.98n/a31
Feb ’26€279.15
€308.73
+10.60%
6.66%€345.74€268.91n/a31
Jan ’26€281.50
€305.95
+8.68%
6.57%€342.58€266.45n/a32
Dec ’25n/a
€308.74
0%
6.57%€345.71€268.88n/a32
Nov ’25€269.30
€295.16
+9.60%
6.61%€330.98€257.43n/a32
Oct ’25€273.20
€271.75
-0.53%
7.08%€323.46€230.91€257.9032
Sep ’25€259.40
€264.52
+1.97%
6.36%€305.78€229.78n/a31
Aug ’25€244.15
€273.25
+11.92%
6.31%€316.93€238.16€263.8531
Jul ’25€237.95
€289.38
+21.61%
5.68%€333.12€265.93€249.0531
Jun ’25n/a
€287.38
0%
6.30%€328.69€262.40n/a30
May ’25€256.60
€295.60
+15.20%
6.22%€333.90€266.56€278.5031
Apr ’25€256.90
€303.25
+18.04%
4.74%€332.37€269.99€289.6031
Mar ’25€270.50
€301.08
+11.30%
4.51%€329.44€275.92n/a32
Feb ’25€270.70
€298.53
+10.28%
6.43%€353.62€258.52€279.1533
Jan ’25€266.60
€286.84
+7.59%
6.33%€348.11€254.49€281.5034
Dec ’24€256.00
€283.30
+10.66%
7.19%€351.90€248.08n/a33
Nov ’24€246.70
€291.20
+18.04%
7.43%€362.43€255.50€269.3033
Oct ’24€249.30
€308.25
+23.65%
5.31%€359.29€267.36€273.2032
€285.34
Fair Value
9.6% undervalued intrinsic discount
28
Number of Analysts

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


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/05 10:17
End of Day Share Price 2025/09/30 00:00
Earnings2025/06/30
Annual Earnings2024/12/31

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.

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 Github.

Analyst Sources

McDonald's Corporation is covered by 73 analysts. 29 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