MCD
5/8LiveMcDonald's Corporation
NYSE · Consumer Cyclical · Restaurants
$268.10
Blended fair value
$92.74
Well above fair value
Margin of safety
-189.07%
against blended fair value
Expected return
-0.21%
per year, mid case
52-week range
Valuation verdict
Based on your current assumptions
Well above fair value
Fair value $92.74 against a market price of $268.10.
- Margin of safety
- -189.07%
- Expected return
- -0.21%/ yr
Company facts
- Market cap
- $190.35B
- P/E (5yr avg)
- 22.3x
- Day range
- $267.98 – $272.55
- 52-week range
- $260.96 – $341.75
- Volume
- 3.2M
- Sector
- Consumer Cyclical
- Industry
- Restaurants
- Employees
- 150,000
Predominantly franchised restaurant system earning royalty and rent income rather than operating most restaurants directly.
Falls short on 3 pillars: p/e ratio, price to free cash flow, long-term debt to fcf.
P/E ratio
Fail5yr average P/E below 22.5
Price to free cash flow
Fail5yr average P/FCF below 22.5
Return on invested capital
Pass5yr average ROIC above 9%
Revenue growth
Pass10yr CAGR above 0%
Net income growth
Pass10yr CAGR above 0%
Free cash flow growth
Pass10yr CAGR above 0%
Shares outstanding
PassShare count flat or shrinking over 5 years
Long-term debt to FCF
FailDebt payable from under 5 years of free cash flow
Everything Money is not an investment adviser. The fair-value range on this page is the arithmetic output of assumptions you control, not a forecast or a recommendation. Verify figures against the company's filings before acting. How the method works