Mcdonalds Stock Market Value
| MCD Stock | USD 288.47 2.44 0.84% |
| Symbol | McDonalds |
McDonalds Price To Book Ratio
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.
McDonalds 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to McDonalds' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of McDonalds.
| 10/23/2024 |
| 11/22/2024 |
If you would invest 0.00 in McDonalds on October 23, 2024 and sell it all today you would earn a total of 0.00 from holding McDonalds or generate 0.0% return on investment in McDonalds over 30 days. McDonalds is related to or competes with Chipotle Mexican, Dutch Bros, Dominos Pizza, Yum Brands, Starbucks, Wingstop, and Shake Shack. McDonalds Corporation operates and franchises McDonalds restaurants in the United States and internationally More
McDonalds Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure McDonalds' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess McDonalds upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.39 | |||
| Information Ratio | (0.05) | |||
| Maximum Drawdown | 6.7 | |||
| Value At Risk | (1.18) | |||
| Potential Upside | 1.43 |
McDonalds Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for McDonalds' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as McDonalds' standard deviation. In reality, there are many statistical measures that can use McDonalds historical prices to predict the future McDonalds' volatility.| Risk Adjusted Performance | 0.033 | |||
| Jensen Alpha | (0.01) | |||
| Total Risk Alpha | (0.09) | |||
| Sortino Ratio | (0.04) | |||
| Treynor Ratio | 0.0667 |
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 Backtested Returns
At this point, McDonalds is very steady. McDonalds has Sharpe Ratio of 0.013, which conveys that the firm had a 0.013% return per unit of risk over the last 3 months. We have found twenty-nine technical indicators for McDonalds, which you can use to evaluate the volatility of the firm. Please verify McDonalds' mean deviation of 0.7002, and Risk Adjusted Performance of 0.033 to check out if the risk estimate we provide is consistent with the expected return of 0.0139%. McDonalds has a performance score of 1 on a scale of 0 to 100. The company secures a Beta (Market Risk) of 0.48, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, McDonalds' returns are expected to increase less than the market. However, during the bear market, the loss of holding McDonalds is expected to be smaller as well. McDonalds presently secures a risk of 1.07%. Please verify McDonalds maximum drawdown, skewness, and the relationship between the total risk alpha and downside variance , to decide if McDonalds will be following its current price movements.
Auto-correlation | 0.12 |
Insignificant predictability
McDonalds has insignificant predictability. Overlapping area represents the amount of predictability between McDonalds time series from 23rd of October 2024 to 7th of November 2024 and 7th of November 2024 to 22nd of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of McDonalds price movement. The serial correlation of 0.12 indicates that less than 12.0% of current McDonalds price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.12 | |
| Spearman Rank Test | 0.26 | |
| Residual Average | 0.0 | |
| Price Variance | 17.12 |
McDonalds lagged returns against current returns
Autocorrelation, which is McDonalds stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting McDonalds' stock expected returns. We can calculate the autocorrelation of McDonalds returns to help us make a trade decision. For example, suppose you find that McDonalds has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
McDonalds regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If McDonalds stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if McDonalds stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in McDonalds stock over time.
Current vs Lagged Prices |
| Timeline |
McDonalds Lagged Returns
When evaluating McDonalds' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of McDonalds stock have on its future price. McDonalds autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, McDonalds autocorrelation shows the relationship between McDonalds stock current value and its past values and can show if there is a momentum factor associated with investing in McDonalds.
Regressed Prices |
| Timeline |
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:Check out McDonalds Correlation, McDonalds Volatility and McDonalds Alpha and Beta module to complement your research on McDonalds. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.You can also try the My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
McDonalds technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.