Mcdonalds Stock Current Valuation

MCD Stock  USD 296.01  0.93  0.32%   
Valuation analysis of McDonalds helps investors to measure McDonalds' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. The current year's Enterprise Value is expected to grow to about 227 B, whereas Enterprise Value Over EBITDA is forecasted to decline to 9.77. Fundamental drivers impacting McDonalds' valuation include:
Enterprise Value
264.3 B
Enterprise Value Ebitda
19.0853
Price Sales
8.178
Forward PE
23.4192
Trailing PE
25.9658
Fairly Valued
Today
296.01
Please note that McDonalds' price fluctuation is very steady at this time. Calculation of the real value of McDonalds is based on 3 months time horizon. Increasing McDonalds' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the McDonalds stock is determined by what a typical buyer is willing to pay for full or partial control of McDonalds. Since McDonalds is currently traded on the exchange, buyers and sellers on that exchange determine the market value of McDonalds Stock. However, McDonalds' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  296.01 Real  299.77 Target  300.26 Hype  296.12 Naive  296.87
The real value of McDonalds Stock, also known as its intrinsic value, is the underlying worth of McDonalds Company, which is reflected in its stock price. It is based on McDonalds' financial performance, growth prospects, management team, or industry conditions. The intrinsic value of McDonalds' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
266.41
Downside
299.77
Real Value
300.88
Upside
Estimating the potential upside or downside of McDonalds helps investors to forecast how McDonalds stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of McDonalds more accurately as focusing exclusively on McDonalds' fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.882.953.04
Details
Hype
Prediction
LowEstimatedHigh
295.02296.12297.22
Details
Potential
Annual Dividend
LowForecastedHigh
4.684.764.84
Details
35 Analysts
Consensus
LowTarget PriceHigh
273.24300.26333.29
Details

McDonalds Company Current Valuation Analysis

McDonalds' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Enterprise Value

 = 

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current McDonalds Current Valuation

    
  264.32 B  
Most of McDonalds' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, McDonalds is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

McDonalds Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for McDonalds is extremely important. It helps to project a fair market value of McDonalds Stock properly, considering its historical fundamentals such as Current Valuation. Since McDonalds' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of McDonalds' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of McDonalds' interrelated accounts and indicators.
-0.350.70.780.660.750.560.020.590.560.850.70.79-0.760.78-0.23-0.370.750.820.640.1-0.75-0.380.570.56-0.390.0
-0.35-0.82-0.48-0.63-0.77-0.140.660.150.10.06-0.03-0.810.79-0.30.660.78-0.85-0.7-0.670.080.590.84-0.48-0.460.590.25
0.7-0.820.850.880.990.49-0.440.140.220.420.440.85-0.940.63-0.58-0.620.910.90.75-0.06-0.85-0.780.640.72-0.61-0.49
0.78-0.480.850.920.880.72-0.10.250.540.760.820.73-0.890.64-0.27-0.550.770.830.55-0.22-0.86-0.580.50.59-0.39-0.47
0.66-0.630.880.920.880.53-0.320.020.550.590.680.76-0.90.51-0.51-0.630.80.820.53-0.02-0.74-0.730.410.48-0.59-0.49
0.75-0.770.990.880.880.58-0.350.190.260.490.510.85-0.940.64-0.53-0.620.910.90.74-0.08-0.88-0.720.670.72-0.58-0.47
0.56-0.140.490.720.530.580.360.150.310.580.630.42-0.50.50.06-0.290.470.540.38-0.42-0.6-0.020.480.5-0.01-0.48
0.020.66-0.44-0.1-0.32-0.350.360.260.170.260.19-0.350.37-0.090.780.45-0.38-0.28-0.32-0.290.160.78-0.29-0.270.290.15
0.590.150.140.250.020.190.150.260.210.590.450.21-0.230.280.220.120.10.120.190.14-0.390.110.180.18-0.050.43
0.560.10.220.540.550.260.310.170.210.750.720.33-0.370.47-0.02-0.220.290.390.060.2-0.29-0.150.00.09-0.090.03
0.850.060.420.760.590.490.580.260.590.750.920.47-0.550.590.08-0.150.420.550.280.01-0.58-0.170.270.3-0.18-0.02
0.7-0.030.440.820.680.510.630.190.450.720.920.46-0.60.380.06-0.340.410.480.19-0.14-0.58-0.260.180.17-0.17-0.1
0.79-0.810.850.730.760.850.42-0.350.210.330.470.46-0.940.62-0.49-0.790.980.910.74-0.07-0.78-0.730.570.53-0.52-0.04
-0.760.79-0.94-0.89-0.9-0.94-0.50.37-0.23-0.37-0.55-0.6-0.94-0.590.490.77-0.94-0.89-0.690.120.890.8-0.57-0.580.540.26
0.78-0.30.630.640.510.640.5-0.090.280.470.590.380.62-0.59-0.26-0.260.650.820.680.01-0.68-0.330.690.85-0.06-0.25
-0.230.66-0.58-0.27-0.51-0.530.060.780.22-0.020.080.06-0.490.49-0.260.42-0.53-0.44-0.44-0.490.280.61-0.44-0.390.470.22
-0.370.78-0.62-0.55-0.63-0.62-0.290.450.12-0.22-0.15-0.34-0.790.77-0.260.42-0.77-0.61-0.430.260.60.76-0.41-0.250.220.04
0.75-0.850.910.770.80.910.47-0.380.10.290.420.410.98-0.940.65-0.53-0.770.950.77-0.11-0.8-0.750.610.61-0.55-0.22
0.82-0.70.90.830.820.90.54-0.280.120.390.550.480.91-0.890.82-0.44-0.610.950.77-0.12-0.82-0.680.640.73-0.48-0.34
0.64-0.670.750.550.530.740.38-0.320.190.060.280.190.74-0.690.68-0.44-0.430.770.770.08-0.64-0.50.640.71-0.41-0.22
0.10.08-0.06-0.22-0.02-0.08-0.42-0.290.140.20.01-0.14-0.070.120.01-0.490.26-0.11-0.120.080.23-0.020.07-0.07-0.240.26
-0.750.59-0.85-0.86-0.74-0.88-0.60.16-0.39-0.29-0.58-0.58-0.780.89-0.680.280.6-0.8-0.82-0.640.230.6-0.73-0.750.290.28
-0.380.84-0.78-0.58-0.73-0.72-0.020.780.11-0.15-0.17-0.26-0.730.8-0.330.610.76-0.75-0.68-0.5-0.020.6-0.44-0.40.490.25
0.57-0.480.640.50.410.670.48-0.290.180.00.270.180.57-0.570.69-0.44-0.410.610.640.640.07-0.73-0.440.82-0.01-0.25
0.56-0.460.720.590.480.720.5-0.270.180.090.30.170.53-0.580.85-0.39-0.250.610.730.71-0.07-0.75-0.40.82-0.07-0.49
-0.390.59-0.61-0.39-0.59-0.58-0.010.29-0.05-0.09-0.18-0.17-0.520.54-0.060.470.22-0.55-0.48-0.41-0.240.290.49-0.01-0.070.2
0.00.25-0.49-0.47-0.49-0.47-0.480.150.430.03-0.02-0.1-0.040.26-0.250.220.04-0.22-0.34-0.220.260.280.25-0.25-0.490.2
Click cells to compare fundamentals

McDonalds Current Valuation Historical Pattern

Today, most investors in McDonalds Stock are looking for potential investment opportunities by analyzing not only static indicators but also various McDonalds' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of McDonalds current valuation as a starting point in their analysis.
   McDonalds Current Valuation   
       Timeline  
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Competition

In accordance with the recently published financial statements, McDonalds has a Current Valuation of 264.32 B. This is much higher than that of the Hotels, Restaurants & Leisure sector and significantly higher than that of the Consumer Discretionary industry. The current valuation for all United States stocks is significantly lower than that of the firm.

McDonalds Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses McDonalds' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of McDonalds could also be used in its relative valuation, which is a method of valuing McDonalds by comparing valuation metrics of similar companies.
McDonalds is currently under evaluation in current valuation category among its peers.

McDonalds ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, McDonalds' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McDonalds' managers, analysts, and investors.
Environmental
Governance
Social

McDonalds Fundamentals

About McDonalds Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze McDonalds's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of McDonalds using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of McDonalds based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether McDonalds is a strong investment it is important to analyze McDonalds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact McDonalds' future performance. For an informed investment choice regarding McDonalds Stock, refer to the following important reports:
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McDonalds. If investors know McDonalds will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McDonalds listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.01)
Dividend Share
6.68
Earnings Share
11.4
Revenue Per Share
36.01
Quarterly Revenue Growth
0.027
The market value of McDonalds is measured differently than its book value, which is the value of McDonalds that is recorded on the company's balance sheet. Investors also form their own opinion of McDonalds' value that differs from its market value or its book value, called intrinsic value, which is McDonalds' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McDonalds' market value can be influenced by many factors that don't directly affect McDonalds' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between McDonalds' value and its price as these two are different measures arrived at by different means. Investors typically determine if McDonalds is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McDonalds' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.