McDonald's Valuation
Is MCD * 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 MCD * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MCD * (MX$4650) is trading above our estimate of fair value (MX$3531.72)
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.
What is MCD *'s n/a Ratio? | |
---|---|
n/a | 0x |
n/a | n/a |
Market Cap | US$203.63b |
Key Statistics | |
---|---|
Enterprise Value/Revenue | 9.9x |
Enterprise Value/EBITDA | 18.4x |
PEG Ratio | 3.5x |
Price to Earnings Ratio vs Peers
How does MCD *'s PE Ratio compare to its peers?
Company | Forward PE | Estimated Growth | Market Cap |
---|---|---|---|
Peer Average | 38.2x | ||
ALSEA * Alsea. de | 26x | 17.4% | Mex$66.8b |
SBUX Starbucks | 24.1x | 11.2% | US$103.6b |
CMG Chipotle Mexican Grill | 65.2x | 15.8% | US$80.2b |
3690 Meituan | 37.6x | 36.3% | HK$563.9b |
MCD * McDonald's | 24x | 6.8% | Mex$203.6b |
Price-To-Earnings vs Peers: MCD * is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (38.2x).
Price to Earnings Ratio vs Industry
How does MCD *'s PE Ratio compare vs other companies in the Global Hospitality Industry?
Price-To-Earnings vs Industry: MCD * is expensive based on its Price-To-Earnings Ratio (24x) compared to the Global Hospitality industry average (21.6x).
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.
Fair Ratio | |
---|---|
Current PE Ratio | 24x |
Fair PE Ratio | 31.4x |
Price-To-Earnings vs Fair Ratio: MCD * is good value based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (31.4x).
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Date | Share Price | Average 1Y Price Target | Dispersion | High | Low | 1Y Actual price | Analysts |
---|---|---|---|---|---|---|---|
Current | Mex$4,650.00 | Mex$5,431.61 +16.8% | 4.5% | Mex$5,947.26 | Mex$4,981.04 | n/a | 31 |
Mar ’25 | Mex$5,050.00 | Mex$5,578.53 +10.5% | 4.5% | Mex$6,104.06 | Mex$5,112.36 | n/a | 32 |
Feb ’25 | Mex$5,070.00 | Mex$5,568.61 +9.8% | 6.4% | Mex$6,596.22 | Mex$4,822.30 | n/a | 33 |
Jan ’25 | Mex$5,015.00 | Mex$5,375.19 +7.2% | 6.3% | Mex$6,523.37 | Mex$4,769.04 | n/a | 34 |
Dec ’24 | Mex$4,800.00 | Mex$5,353.78 +11.5% | 7.2% | Mex$6,650.26 | Mex$4,688.17 | n/a | 33 |
Nov ’24 | Mex$4,673.00 | Mex$5,481.28 +17.3% | 7.4% | Mex$6,822.11 | Mex$4,809.32 | n/a | 33 |
Oct ’24 | Mex$4,600.00 | Mex$5,615.68 +22.1% | 5.3% | Mex$6,545.55 | Mex$4,870.71 | n/a | 32 |
Sep ’24 | Mex$4,792.42 | Mex$5,589.65 +16.6% | 5.1% | Mex$6,527.62 | Mex$4,857.37 | n/a | 32 |
Aug ’24 | Mex$4,968.00 | Mex$5,479.77 +10.3% | 5.4% | Mex$6,413.11 | Mex$4,772.15 | n/a | 33 |
Jul ’24 | Mex$4,970.00 | Mex$5,409.09 +8.8% | 5.0% | Mex$5,921.72 | Mex$4,449.85 | n/a | 33 |
Jun ’24 | Mex$5,039.00 | Mex$5,552.12 +10.2% | 5.0% | Mex$6,073.48 | Mex$4,563.88 | n/a | 32 |
May ’24 | Mex$5,316.20 | Mex$5,649.27 +6.3% | 5.4% | Mex$6,221.05 | Mex$4,674.77 | n/a | 33 |
Apr ’24 | n/a | Mex$5,307.88 0% | 6.0% | Mex$5,972.70 | Mex$4,343.78 | n/a | 32 |
Mar ’24 | Mex$4,785.00 | Mex$5,451.70 +13.9% | 5.8% | Mex$6,119.66 | Mex$4,477.80 | Mex$5,050.00 | 33 |
Feb ’24 | Mex$4,952.00 | Mex$5,448.97 +10.0% | 5.9% | Mex$6,107.69 | Mex$4,469.04 | Mex$5,070.00 | 32 |
Jan ’24 | Mex$5,100.00 | Mex$5,688.06 +11.5% | 6.3% | Mex$6,443.49 | Mex$4,852.27 | Mex$5,015.00 | 33 |
Dec ’23 | Mex$5,200.00 | Mex$5,584.37 +7.4% | 6.2% | Mex$6,348.31 | Mex$4,780.59 | Mex$4,800.00 | 34 |
Nov ’23 | Mex$5,387.99 | Mex$5,671.21 +5.3% | 6.2% | Mex$6,468.13 | Mex$4,870.82 | Mex$4,673.00 | 34 |
Oct ’23 | Mex$4,665.00 | Mex$5,735.83 +23.0% | 6.8% | Mex$6,684.71 | Mex$4,789.35 | Mex$4,600.00 | 34 |
Sep ’23 | Mex$5,161.98 | Mex$5,692.32 +10.3% | 6.6% | Mex$6,606.22 | Mex$4,733.11 | Mex$4,792.42 | 32 |
Aug ’23 | Mex$5,338.04 | Mex$5,728.59 +7.3% | 7.0% | Mex$6,685.98 | Mex$4,790.26 | Mex$4,968.00 | 31 |
Jul ’23 | Mex$4,950.01 | Mex$5,597.04 +13.1% | 6.4% | Mex$6,321.10 | Mex$4,569.71 | Mex$4,970.00 | 31 |
Jun ’23 | Mex$4,900.00 | Mex$5,491.77 +12.1% | 6.9% | Mex$6,210.86 | Mex$4,490.01 | Mex$5,039.00 | 31 |
May ’23 | Mex$5,198.99 | Mex$5,718.39 +10.0% | 5.9% | Mex$6,408.33 | Mex$4,632.77 | Mex$5,316.20 | 32 |
Apr ’23 | Mex$4,923.64 | Mex$5,580.50 +13.3% | 6.0% | Mex$6,237.80 | Mex$4,966.40 | n/a | 32 |
Mar ’23 | Mex$4,999.59 | Mex$5,824.57 +16.5% | 5.6% | Mex$6,447.96 | Mex$5,133.73 | Mex$4,785.00 | 33 |
Analyst Forecast: Target price is less than 20% higher than the current share price.