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McDonald's Corp (NYSE:MCD)
EV/EBITDA
14.12 (As of Today)

EV/EBITDA ratio is calculated as enterprise value divided by its EBITDA. As of today, McDonald's Corp's enterprise value is $123,575 Mil. McDonald's Corp's earnings before depreciation and amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $8,750 Mil. Therefore, McDonald's Corp's EV/EBITDA ratio for today is 14.12.

MCD' s EV/EBITDA Range Over the Past 10 Years
Min: 8.5   Max: 15.7
Current: 13.36

8.5
15.7

During the past 13 years, the highest EV/EBITDA Ratio of McDonald's Corp was 15.70. The lowest was 8.50. And the median was 10.50.

MCD's EV/EBITDA is ranked lower than
55% of the 259 Companies
in the Global Restaurants industry.

( Industry Median: 12.41 vs. MCD: 13.36 )

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

As of today, McDonald's Corp's stock price is $120.45. McDonald's Corp's earnings per share for the trailing twelve months (TTM) ended in Sep. 2016 was $4.80. Therefore, McDonald's Corp's P/E Ratio for today is 25.09.

The "classic" EV/EBITDA ratio is much better in capturing debt and net cash than the P/E Ratio.


Definition

McDonald's Corp's EV/EBITDA for today is calculated as:

EV/EBITDA=Enterprise Value (Today)/Earnings Before Depreciation and Amortization (TTM)
=123575.017/8749.7
=14.12

McDonald's Corp's current Enterprise Value is $123,575 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. McDonald's Corp's Earnings Before Depreciation and Amortization for the trailing twelve months (TTM) ended in Sep. 2016 was $8,750 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

EV/EBITDA (Enterprise value/EBITDA) is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the P/E Ratio to determine the fair market value of a company.

McDonald's Corp's P/E Ratio for today is calculated as:

P/E Ratio=Share Price (Today)/Earnings Per Share (TTM)
=120.45/4.8
=25.09

McDonald's Corp's share price for today is $120.45.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. McDonald's Corp's Earnings Per Share for the trailing twelve months (TTM) ended in Sep. 2016 was $4.80.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Study has found that the companies with the lowest EV/EBITDA outperforms companies measured as cheap by other ratios such as P/E Ratio.

Please read Which price ratio outperforms the enterprise multiple?


Related Terms

Enterprise Value, Earnings Before Depreciation and Amortization, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

McDonald's Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
ev2ebitda 10.2814.469.829.3010.3111.369.8910.4110.7514.12

McDonald's Corp Semi-Annual Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
ev2ebitda 10.6910.3810.7511.7211.9112.2914.1214.2613.7312.97
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