Published on 7 Apr 2024 on Simply Wall St. via Yahoo Finance
Estimating The Fair Value Of McDonald's Corporation (NYSE:MCD)
Key Insights
McDonald's' estimated fair value is US$266 based on 2 Stage Free Cash Flow to EquityCurrent share price of US$267 suggests McDonald's is potentially trading close to its fair value Analyst price target for MCD is US$326, which is 23% above our fair value estimate
How far off is McDonald's Corporation (NYSE:MCD) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example!