McDonalds Net Worth
McDonalds Net Worth Breakdown | MCD |
McDonalds Net Worth Analysis
McDonalds' net worth analysis, or its valuation, is the process of determining the total value of the company. This involves assessing a range of factors, including McDonalds' financial performance, assets, liabilities, and potential for growth. The ultimate goal is to provide a clear understanding of McDonalds' overall worth, which can help investors make informed investment decisions. There are several methods that can be used to perform McDonalds' net worth analysis. One common approach is to calculate McDonalds' market capitalization.Another approach is to use the price-to-earnings ratio (P/E ratio), which compares McDonalds' stock price to its earnings per share (EPS). Discounted cash flow (DCF) analysis is another popular method for assessing McDonalds' net worth. This approach calculates the present value of McDonalds' future cash flows, taking into account factors such as growth rate, profitability, and risk. By comparing the present value of McDonalds' cash flows to its current stock price, investors can gain a better understanding of the company's overall value. Finally, investors may use comparable company analysis to evaluate McDonalds' net worth. This involves comparing McDonalds' financial metrics to similar companies in the same industry. By identifying companies with similar financial characteristics, investors can gain insight into McDonalds' net worth relative to its peers.
Enterprise Value |
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To determine if McDonalds is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding McDonalds' net worth research are outlined below:
| About 73.0% of the company shares are owned by institutional investors | |
| Latest headline from newsweek.com: Disposition of 1054 shares by Tiffanie Boyd of McDonalds subject to Rule 16b-3 |
McDonalds Quarterly Good Will |
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McDonalds uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in McDonalds. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to McDonalds' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 23rd of April 2024 Upcoming Quarterly Report | View | |
| 25th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 3rd of February 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
McDonalds Target Price Consensus
McDonalds target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. McDonalds' target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 35 | Buy |
Most McDonalds analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand McDonalds stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of McDonalds, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationMcDonalds Target Price Projection
McDonalds' current and average target prices are 292.44 and 300.26, respectively. The current price of McDonalds is the price at which McDonalds is currently trading. On the other hand, McDonalds' target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
McDonalds Market Quote on 3rd of December 2024
Target Price
Analyst Consensus On McDonalds Target Price
Know McDonalds' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as McDonalds is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading McDonalds backward and forwards among themselves. McDonalds' institutional investor refers to the entity that pools money to purchase McDonalds' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | T. Rowe Price Associates, Inc. | 2024-09-30 | 8.1 M | Northern Trust Corp | 2024-09-30 | 8 M | Royal Bank Of Canada | 2024-09-30 | 7.2 M | Legal & General Group Plc | 2024-09-30 | 5.9 M | Bank Of New York Mellon Corp | 2024-09-30 | 5.8 M | Ubs Group Ag | 2024-09-30 | 5.7 M | Charles Schwab Investment Management Inc | 2024-09-30 | 5.6 M | Capital World Investors | 2024-09-30 | 4.7 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 4.5 M | Vanguard Group Inc | 2024-09-30 | 69.6 M | Blackrock Inc | 2024-06-30 | 50.2 M |
Follow McDonalds' market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 209.57 B.Market Cap |
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Project McDonalds' profitablity
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.16 | 0.09 | |
| Return On Capital Employed | 0.24 | 0.15 | |
| Return On Assets | 0.15 | 0.09 | |
| Return On Equity | (1.80) | (1.71) |
When accessing McDonalds' net worth, it's important to look at multiple sources and consider different scenarios. For example, gross profit margin measures McDonalds' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of McDonalds' profitability and make more informed investment decisions.
Please note, the presentation of McDonalds' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, McDonalds' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of McDonalds' management manipulating its earnings.
Evaluate McDonalds' management efficiency
McDonalds has Return on Asset of 0.1363 % which means that on every $100 spent on assets, it made $0.1363 of profit. This is way below average. McDonalds' management efficiency ratios could be used to measure how well McDonalds manages its routine affairs as well as how well it operates its assets and liabilities. As of December 3, 2024, Return On Tangible Assets is expected to decline to 0.09. In addition to that, Return On Capital Employed is expected to decline to 0.15. At present, McDonalds' Total Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Assets is expected to grow to about 10.5 B, whereas Non Current Assets Total are forecasted to decline to about 25.5 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (6.47) | (6.14) | |
| Tangible Book Value Per Share | (10.64) | (10.11) | |
| Enterprise Value Over EBITDA | 19.01 | 9.77 | |
| Price Book Value Ratio | (45.86) | (43.56) | |
| Enterprise Value Multiple | 19.01 | 9.77 | |
| Price Fair Value | (45.86) | (43.56) | |
| Enterprise Value | 216.2 B | 227 B |
McDonalds showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Enterprise Value Revenue 10.19 | Revenue 25.9 B | Quarterly Revenue Growth 0.027 | Revenue Per Share 36.01 |
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific McDonalds insiders, such as employees or executives, is commonly permitted as long as it does not rely on McDonalds' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases McDonalds insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Tiffanie Boyd over two weeks ago Disposition of 1054 shares by Tiffanie Boyd of McDonalds subject to Rule 16b-3 | ||
Thompson Donald over a year ago Exercise or conversion by Thompson Donald of 41800 shares of McDonalds subject to Rule 16b-3 |
McDonalds Corporate Filings
F4 | 26th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 7th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 29th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
McDonalds Earnings Estimation Breakdown
The calculation of McDonalds' earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of McDonalds is estimated to be 2.9517 with the future projection ranging from a low of 2.885 to a high of 3.04. Please be aware that this consensus of annual earnings estimates for McDonalds is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
2.88 Lowest | Expected EPS | 3.04 Highest |
McDonalds Earnings Projection Consensus
Suppose the current estimates of McDonalds' value are higher than the current market price of the McDonalds stock. In this case, investors may conclude that McDonalds is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and McDonalds' stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2024 | Current EPS (TTM) | |
| 35 | 94.89% | 3.23 | 2.9517 | 11.4 |
McDonalds Earnings History
Earnings estimate consensus by McDonalds analysts from Wall Street is used by the market to judge McDonalds' stock performance. Investors also use these earnings estimates to evaluate and project the stock performance into the future in order to make their investment decisions. However, we recommend analyzing not only McDonalds' upcoming profit reports and earnings-per-share forecasts but also comparing them to our different valuation methods.McDonalds Quarterly Gross Profit |
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Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of McDonalds' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
McDonalds Earnings per Share Projection vs Actual
Actual Earning per Share of McDonalds refers to what the company shows during its earnings calls or quarterly reports. The Expected EPS is what analysts covering McDonalds predict the company's earnings will be in the future. The higher the earnings per share of McDonalds, the better is its profitability. While calculating the Earning per Share, we use the weighted ratio, as the number of shares outstanding can change over time.McDonalds Estimated Months Earnings per Share
For an investor who is primarily interested in generating an income out of investing in entities such as McDonalds, the EPS ratio can tell if the company is intending to increase its current dividend. Although EPS is an essential tool for investors, it should not be used in isolation. EPS of McDonalds should always be considered in relation to other companies to make a more educated investment decision.McDonalds Quarterly Analyst Estimates and Surprise Metrics
Earnings surprises can significantly impact McDonalds' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
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2024-10-29 | 2024-09-30 | 3.2 | 3.23 | 0.03 | 0 | ||
2024-07-29 | 2024-06-30 | 3.07 | 2.97 | -0.1 | 3 | ||
2024-04-30 | 2024-03-31 | 2.72 | 2.7 | -0.02 | 0 | ||
2024-02-05 | 2023-12-31 | 2.82 | 2.95 | 0.13 | 4 | ||
2023-10-30 | 2023-09-30 | 3 | 3.19 | 0.19 | 6 | ||
2023-07-27 | 2023-06-30 | 2.79 | 3.17 | 0.38 | 13 | ||
2023-04-25 | 2023-03-31 | 2.33 | 2.63 | 0.3 | 12 | ||
2023-01-31 | 2022-12-31 | 2.45 | 2.59 | 0.14 | 5 | ||
2022-10-27 | 2022-09-30 | 2.58 | 2.68 | 0.1 | 3 | ||
2022-07-26 | 2022-06-30 | 2.47 | 2.55 | 0.08 | 3 | ||
2022-04-28 | 2022-03-31 | 2.17 | 2.28 | 0.11 | 5 | ||
2022-01-27 | 2021-12-31 | 2.34 | 2.23 | -0.11 | 4 | ||
2021-10-27 | 2021-09-30 | 2.46 | 2.76 | 0.3 | 12 | ||
2021-07-28 | 2021-06-30 | 2.11 | 2.37 | 0.26 | 12 | ||
2021-04-29 | 2021-03-31 | 1.81 | 1.92 | 0.11 | 6 | ||
2021-01-28 | 2020-12-31 | 1.78 | 1.7 | -0.08 | 4 | ||
2020-11-09 | 2020-09-30 | 1.9 | 2.22 | 0.32 | 16 | ||
2020-07-28 | 2020-06-30 | 0.74 | 0.66 | -0.08 | 10 | ||
2020-04-30 | 2020-03-31 | 1.57 | 1.47 | -0.1 | 6 | ||
2020-01-29 | 2019-12-31 | 1.96 | 1.97 | 0.01 | 0 | ||
2019-10-22 | 2019-09-30 | 2.21 | 2.11 | -0.1 | 4 | ||
2019-07-26 | 2019-06-30 | 2.05 | 2.05 | 0.0 | 0 | ||
2019-04-30 | 2019-03-31 | 1.75 | 1.78 | 0.03 | 1 | ||
2019-01-30 | 2018-12-31 | 1.89 | 1.97 | 0.08 | 4 | ||
2018-10-23 | 2018-09-30 | 1.99 | 2.1 | 0.11 | 5 | ||
2018-07-26 | 2018-06-30 | 1.92 | 1.99 | 0.07 | 3 | ||
2018-04-30 | 2018-03-31 | 1.67 | 1.79 | 0.12 | 7 | ||
2018-01-30 | 2017-12-31 | 1.59 | 1.71 | 0.12 | 7 | ||
2017-10-24 | 2017-09-30 | 1.77 | 1.76 | -0.01 | 0 | ||
2017-07-25 | 2017-06-30 | 1.62 | 1.73 | 0.11 | 6 | ||
2017-04-25 | 2017-03-31 | 1.33 | 1.47 | 0.14 | 10 | ||
2017-01-23 | 2016-12-31 | 1.41 | 1.43 | 0.02 | 1 | ||
2016-10-21 | 2016-09-30 | 1.48 | 1.62 | 0.14 | 9 | ||
2016-07-26 | 2016-06-30 | 1.38 | 1.45 | 0.07 | 5 | ||
2016-04-22 | 2016-03-31 | 1.16 | 1.23 | 0.07 | 6 | ||
2016-01-25 | 2015-12-31 | 1.23 | 1.31 | 0.08 | 6 | ||
2015-10-22 | 2015-09-30 | 1.27 | 1.4 | 0.13 | 10 | ||
2015-07-23 | 2015-06-30 | 1.23 | 1.29 | 0.06 | 4 | ||
2015-04-22 | 2015-03-31 | 1.06 | 1.01 | -0.05 | 4 | ||
2015-01-23 | 2014-12-31 | 1.22 | 1.13 | -0.09 | 7 | ||
2014-10-21 | 2014-09-30 | 1.37 | 1.36 | -0.01 | 0 | ||
2014-07-22 | 2014-06-30 | 1.44 | 1.4 | -0.04 | 2 | ||
2014-04-22 | 2014-03-31 | 1.24 | 1.21 | -0.03 | 2 | ||
2014-01-23 | 2013-12-31 | 1.39 | 1.4 | 0.01 | 0 | ||
2013-10-21 | 2013-09-30 | 1.51 | 1.52 | 0.01 | 0 | ||
2013-07-22 | 2013-06-30 | 1.4 | 1.38 | -0.02 | 1 | ||
2013-04-19 | 2013-03-31 | 1.27 | 1.26 | -0.01 | 0 | ||
2013-01-23 | 2012-12-31 | 1.33 | 1.38 | 0.05 | 3 | ||
2012-10-19 | 2012-09-30 | 1.47 | 1.43 | -0.04 | 2 | ||
2012-07-23 | 2012-06-30 | 1.37 | 1.32 | -0.05 | 3 | ||
2012-04-20 | 2012-03-31 | 1.23 | 1.23 | 0.0 | 0 | ||
2012-01-24 | 2011-12-31 | 1.3 | 1.33 | 0.03 | 2 | ||
2011-10-21 | 2011-09-30 | 1.43 | 1.45 | 0.02 | 1 | ||
2011-07-22 | 2011-06-30 | 1.28 | 1.35 | 0.07 | 5 | ||
2011-04-21 | 2011-03-31 | 1.14 | 1.15 | 0.01 | 0 | ||
2011-01-24 | 2010-12-31 | 1.16 | 1.16 | 0.0 | 0 | ||
2010-10-21 | 2010-09-30 | 1.25 | 1.29 | 0.04 | 3 | ||
2010-07-23 | 2010-06-30 | 1.12 | 1.13 | 0.01 | 0 | ||
2010-04-21 | 2010-03-31 | 0.96 | 1.03 | 0.07 | 7 | ||
2010-01-22 | 2009-12-31 | 1.02 | 1.03 | 0.01 | 0 | ||
2009-10-22 | 2009-09-30 | 1.11 | 1.15 | 0.04 | 3 | ||
2009-07-23 | 2009-06-30 | 0.97 | 0.97 | 0.0 | 0 | ||
2009-04-22 | 2009-03-31 | 0.82 | 0.83 | 0.01 | 1 | ||
2009-01-26 | 2008-12-31 | 0.83 | 0.87 | 0.04 | 4 | ||
2008-10-22 | 2008-09-30 | 0.98 | 1.05 | 0.07 | 7 | ||
2008-07-23 | 2008-06-30 | 0.86 | 0.94 | 0.08 | 9 | ||
2008-04-22 | 2008-03-31 | 0.7 | 0.81 | 0.11 | 15 | ||
2008-01-28 | 2007-12-31 | 0.71 | 0.73 | 0.02 | 2 | ||
2007-10-19 | 2007-09-30 | 0.83 | 0.83 | 0.0 | 0 | ||
2007-07-24 | 2007-06-30 | 0.71 | 0.71 | 0.0 | 0 | ||
2007-04-20 | 2007-03-31 | 0.62 | 0.62 | 0.0 | 0 | ||
2007-01-24 | 2006-12-31 | 0.61 | 0.61 | 0.0 | 0 | ||
2006-10-19 | 2006-09-30 | 0.68 | 0.68 | 0.0 | 0 | ||
2006-07-25 | 2006-06-30 | 0.62 | 0.67 | 0.05 | 8 | ||
2006-04-21 | 2006-03-31 | 0.49 | 0.49 | 0.0 | 0 | ||
2006-01-24 | 2005-12-31 | 0.48 | 0.48 | 0.0 | 0 | ||
2005-10-20 | 2005-09-30 | 0.58 | 0.58 | 0.0 | 0 | ||
2005-07-21 | 2005-06-30 | 0.42 | 0.42 | 0.0 | 0 | ||
2005-04-21 | 2005-03-31 | 0.43 | 0.56 | 0.13 | 30 | ||
2005-01-28 | 2004-12-31 | 0.46 | 0.45 | -0.01 | 2 | ||
2004-10-19 | 2004-09-30 | 0.61 | 0.61 | 0.0 | 0 | ||
2004-07-22 | 2004-06-30 | 0.47 | 0.47 | 0.0 | 0 | ||
2004-04-27 | 2004-03-31 | 0.4 | 0.4 | 0.0 | 0 | ||
2004-01-26 | 2003-12-31 | 0.35 | 0.35 | 0.0 | 0 | ||
2003-10-22 | 2003-09-30 | 0.4 | 0.43 | 0.03 | 7 | ||
2003-07-29 | 2003-06-30 | 0.37 | 0.37 | 0.0 | 0 | ||
2003-04-28 | 2003-03-31 | 0.28 | 0.29 | 0.01 | 3 | ||
2003-01-23 | 2002-12-31 | 0.25 | 0.25 | 0.0 | 0 | ||
2002-10-22 | 2002-09-30 | 0.39 | 0.38 | -0.01 | 2 | ||
2002-07-24 | 2002-06-30 | 0.38 | 0.39 | 0.01 | 2 | ||
2002-04-18 | 2002-03-31 | 0.29 | 0.31 | 0.02 | 6 | ||
2002-01-24 | 2001-12-31 | 0.34 | 0.34 | 0.0 | 0 | ||
2001-10-18 | 2001-09-30 | 0.39 | 0.42 | 0.03 | 7 | ||
2001-07-24 | 2001-06-30 | 0.34 | 0.34 | 0.0 | 0 | ||
2001-04-19 | 2001-03-31 | 0.3 | 0.29 | -0.01 | 3 | ||
2001-01-24 | 2000-12-31 | 0.35 | 0.34 | -0.01 | 2 | ||
2000-10-19 | 2000-09-30 | 0.41 | 0.41 | 0.0 | 0 | ||
2000-07-25 | 2000-06-30 | 0.4 | 0.39 | -0.01 | 2 | ||
2000-04-20 | 2000-03-31 | 0.32 | 0.33 | 0.01 | 3 | ||
2000-01-26 | 1999-12-31 | 0.36 | 0.35 | -0.01 | 2 | ||
1999-10-21 | 1999-09-30 | 0.39 | 0.39 | 0.0 | 0 | ||
1999-07-22 | 1999-06-30 | 0.37 | 0.37 | 0.0 | 0 | ||
1999-04-22 | 1999-03-31 | 0.29 | 0.3 | 0.01 | 3 | ||
1999-01-26 | 1998-12-31 | 0.32 | 0.32 | 0.0 | 0 | ||
1998-10-19 | 1998-09-30 | 0.34 | 0.35 | 0.01 | 2 | ||
1998-07-20 | 1998-06-30 | 0.33 | 0.33 | 0.0 | 0 | ||
1998-04-17 | 1998-03-31 | 0.26 | 0.26 | 0.0 | 0 | ||
1998-01-22 | 1997-12-31 | 0.3 | 0.29 | -0.01 | 3 | ||
1997-10-17 | 1997-09-30 | 0.33 | 0.32 | -0.01 | 3 | ||
1997-07-17 | 1997-06-30 | 0.32 | 0.32 | 0.0 | 0 | ||
1997-04-17 | 1997-03-31 | 0.25 | 0.25 | 0.0 | 0 | ||
1997-01-23 | 1996-12-31 | 0.29 | 0.3 | 0.01 | 3 | ||
1996-10-18 | 1996-09-30 | 0.32 | 0.31 | -0.01 | 3 | ||
1996-07-18 | 1996-06-30 | 0.29 | 0.3 | 0.01 | 3 | ||
1996-04-18 | 1996-03-31 | 0.22 | 0.22 | 0.0 | 0 |
McDonalds Corporate Directors
| Richard Lenny | Independent Director | Profile | |
| Margaret Georgiadis | Independent Director | Profile | |
| John Rogers | Independent Director | Profile | |
| Sheila Penrose | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McDonalds. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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.