Is McDonald's Corporation (MCD) Undervalued?
Based on the current stock price of $310.68 and a P/E ratio of 26.53,McDonald's Corporation has a PEG ratio of 7.58.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 7.58, MCD appears to be potentially overvalued relative to its growth rate of 3.50%.
Based on a PEG ratio of 4.50 (adjusted for dividends).
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How we analyzed MCD
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 26.53and dividing it by the annual growth rate of 3.50%.
PEG = 26.53 (P/E) ÷ 3.50 (Growth) = 7.58
Frequently Asked Questions about MCD
What is the current PEG Ratio for McDonald's Corporation (MCD)?+
The current PEG Ratio for McDonald's Corporation is 7.58. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is MCD stock undervalued right now?+
Based on the PEG ratio of 7.58, McDonald's Corporation appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for MCD?+
The PEGY ratio for McDonald's Corporation is 4.50. This metric accounts for dividend yield (2.39%), providing a more complete valuation picture.