McDonalds Valuation
| MDO Stock | EUR 279.00 1.70 0.61% |
At this time, the firm appears to be overvalued. McDonalds secures a last-minute Real Value of €233.31 per share. The latest price of the firm is €279.0. Our model forecasts the value of McDonalds from reviewing the firm fundamentals such as return on asset of 0.12, and Operating Margin of 0.45 % as well as analyzing its technical indicators and probability of bankruptcy.
Overvalued
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 279.0 | Real 233.31 | Hype 279.0 | Naive 287.87 |
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.
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: McDonalds Total Value Analysis
McDonalds is now estimated to have takeover price of 232.95 B with market capitalization of 180.75 B, debt of 35.9 B, and cash on hands of 3.05 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the McDonalds fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
232.95 B | 180.75 B | 35.9 B | 3.05 B |
McDonalds Investor Information
About 71.0% of the company shares are owned by institutional investors. The company recorded earning per share (EPS) of 7.85. McDonalds last dividend was issued on the 28th of February 2023. Based on the key indicators related to McDonalds' liquidity, profitability, solvency, and operating efficiency, McDonalds is not in a good financial situation at the moment. It has a very high risk of going through financial straits in March.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 45.96 percent. This implies that the Company is making €0.46 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 731.5 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 no matter how many assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.McDonalds Profitability Analysis
The company reported the revenue of 23.18 B. Net Income was 6.18 B with profit before overhead, payroll, taxes, and interest of 13.21 B.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.McDonalds Corporation operates and franchises McDonalds restaurants in the United States and internationally. McDonalds Corporation was founded in 1940 and is based in Chicago, Illinois. MCDONALDS CORP operates under Restaurants classification in Germany and is traded on Frankfurt Stock Exchange. It employs 200000 people.
8 Steps to conduct McDonalds' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates McDonalds' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct McDonalds' valuation analysis, follow these 8 steps:- Gather financial information: Obtain McDonalds' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine McDonalds' revenue streams: Identify McDonalds' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research McDonalds' industry and market trends, including the size of the market, growth rate, and competition.
- Establish McDonalds' growth potential: Evaluate McDonalds' management, business model, and growth potential.
- Determine McDonalds' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate McDonalds' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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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