McDonalds Valuation
| MCD Stock | USD 295.08 1.25 0.42% |
At this time, the firm appears to be fairly valued. McDonalds secures a last-minute Real Value of $299.47 per share. The latest price of the firm is $295.08. Our model forecasts the value of McDonalds from reviewing the firm fundamentals such as return on asset of 0.14, and Operating Margin of 0.47 % as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting McDonalds' valuation include:
Enterprise Value 264.4 B | Enterprise Value Ebitda 19.0946 | Price Sales 8.1868 | Forward PE 23.4192 | Trailing PE 25.9939 |
Fairly Valued
Today
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 295.08 | Real 299.47 | Target 300.26 | Hype 295.12 | Naive 296.29 |
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.
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use McDonalds' intrinsic value based on its ongoing forecasts of McDonalds' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against McDonalds' closest peers. If more than one evaluation category is relevant for McDonalds we suggest using both methods to arrive at a better estimate.
McDonalds Cash |
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McDonalds Valuation Trend
Comparing McDonalds' enterprise value against its market capitalization is a good way to estimate the value of McDonalds uage its performance over time. This information may sometimes be enough for investors to make reasonable market timing decisions.
McDonalds Revenue by Product
McDonalds Total Value Analysis
McDonalds is now forecasted to have company total value of 264.45 B with market capitalization of 212.36 B, debt of 53.09 B, and cash on hands of 2.58 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the McDonalds fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
264.45 B | 212.36 B | 53.09 B | 2.58 B |
McDonalds Investor Information
About 73.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.67. McDonalds recorded earning per share (EPS) of 11.4. The entity last dividend was issued on the 2nd of December 2024. The firm had 2:1 split on the 8th of March 1999. Based on the key indicators related to McDonalds' liquidity, profitability, solvency, and operating efficiency, McDonalds may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.48 | 0.4568 |
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| Total Cash From Operating Activities | 5.1 B | 9.6 B |
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| Operating Income | 12.2 B | 11.6 B |
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McDonalds Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. McDonalds has an asset utilization ratio of 45.41 percent. This indicates that the Company is making $0.45 for each dollar of assets. An increasing asset utilization means that McDonalds is more efficient with each dollar of assets it utilizes for everyday operations.McDonalds Ownership Allocation
McDonalds maintains a total of 716.62 Million outstanding shares. The majority of McDonalds outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in McDonalds to benefit from reduced commissions. Accordingly, institutional holders are subject to a different set of regulations than regular investors in McDonalds. Please pay attention to any change in the institutional holdings of McDonalds as this could imply that something significant has changed or is about to change at the company. Please note that on November 18, 2024, Representative Kevin Hern of US Congress acquired $100k to $250k worth of McDonalds's common stock.McDonalds Profitability Analysis
The company reported the last year's revenue of 25.49 B. Total Income to common stockholders was 8.47 B with profit before taxes, overhead, and interest of 13.21 B.McDonalds Past Distributions to stockholders
| 17th of September 2024 | ||
| 17th of June 2024 | ||
| 15th of March 2024 | ||
| 15th of December 2023 | ||
| 18th of September 2023 | ||
| 20th of June 2023 | ||
| 15th of March 2023 | ||
| 15th of December 2022 | ||
| 1st of December 2022 |
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates McDonalds' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in McDonalds and how it compares across the competition.
About McDonalds Valuation
The stock valuation mechanism determines McDonalds' current worth on a weekly basis. Our valuation model uses a comparative analysis of McDonalds. We calculate exposure to McDonalds's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of McDonalds's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 14.2 B | 8.7 B | |
| Pretax Profit Margin | 0.41 | 0.43 | |
| Operating Profit Margin | 0.46 | 0.48 | |
| Net Profit Margin | 0.33 | 0.35 | |
| Gross Profit Margin | 0.57 | 0.56 |
A single share of McDonalds represents a small ownership stake in the entity. As a stockholder of McDonalds, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
McDonalds Dividends Analysis For Valuation
The current year's Dividends Paid is expected to grow to about 4.8 B, whereas Dividend Yield is forecasted to decline to 0.01. . At present, McDonalds' Earnings Yield is projected to slightly decrease based on the last few years of reporting. The current year's Price Earnings To Growth Ratio is expected to grow to 0.69, whereas Retained Earnings Total Equity is forecasted to decline to about 47 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 4.5 B | 4.8 B | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.54 | 0.31 | |
| Dividend Paid And Capex Coverage Ratio | 1.40 | 0.98 |
There are various types of dividends McDonalds can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of McDonalds shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from McDonalds directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When McDonalds pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of McDonalds by the value of the dividends paid out.
McDonalds Growth Indicators
Investing in growth stocks can be very risky. If the company such as McDonalds does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 732.3 M | |
| Quarterly Earnings Growth Y O Y | -0.013 | |
| Forward Price Earnings | 23.4192 |
McDonalds Current Valuation Indicators
Valuation refers to the process of determining the present value of McDonalds and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value McDonalds we look at many different elements of the entity such as McDonalds's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as McDonalds, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use McDonalds' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes McDonalds' worth.Complementary Tools for McDonalds Stock analysis
When running McDonalds' price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.
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