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McDonald'sXSWX:MCD -1.15%74 EV-to-EBITDA is 16.58 as of Jul. 15, 2026, which is 12% below its 10-year median of 18.86. GuruFocus rates XSWX:MCD with a GF Score™ of 74/100 and a GF Value™ of CHF266.18. The stock has 2 warning signs investors should review. Among 308 Restaurants companies, McDonald's ranks worse than 74.35% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, McDonald's's enterprise value is CHF198,100 Mil.
McDonald's's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was CHF11,947 Mil. Therefore, McDonald's's EV-to-EBITDA for today is 16.58.
The historical rank and industry rank for McDonald's's EV-to-EBITDA or its related term are showing as below:
XSWX:MCD'
s EV-to-EBITDA Range Over the Past 10 Years
Min: 12.79 Med: 18.86 Max: 23.84
Current: 16.36
During the past 13 years, the highest EV-to-EBITDA of McDonald's was 23.84. The lowest was 12.79. And the median was 18.86.
XSWX:MCD's EV-to-EBITDA is ranked worse than 74.35% of 308
companies
in the Restaurants industry
Industry Median: 9.565
vs XSWX:MCD: 16.36
EV-to-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 PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
McDonald's (XSWX:MCD) EV-to-EBITDA Explanation
EV-to-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 PE Ratio (TTM) to determine the fair market value of a company.
McDonald's's share price for today is CHF219.05.
McDonald's's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF9.689.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for McDonald's's EV-to-EBITDA can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
XSWX:MCD vs SBUX, YUM, CMG: EV-to-EBITDA Comparison
For the Restaurants subindustry, McDonald's's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McDonald's EV-to-EBITDA vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where McDonald's's EV-to-EBITDA falls into.
McDonald's's current Enterprise Value is CHF198,100 Mil.
McDonald's's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF11,947 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
McDonald's (XSWX:MCD) has a EV-to-EBITDA of 16.58 as of Jul. 15, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on McDonald's. This is 12% below median its historical median of 18.86. Over the past decade, McDonald's' EV-to-EBITDA has ranged from 12.79 to 23.84. According to the industry distribution chart, McDonald's ranks #229 out of 308 companies in the Restaurants industry, placing it in the top 74.4%.
Is McDonald's' EV-to-EBITDA too high?
McDonald's' current EV-to-EBITDA of 16.58 is 12% below median its 10-year median of 18.86. Over the past 10 years, this metric has ranged from a low of 12.79 to a high of 23.84. The Restaurants industry median EV-to-EBITDA is 9.57. McDonald's' value of 16.58 is 73.3% above this industry median. Based on the distribution chart, McDonald's ranks #229 out of 308 companies in the Restaurants industry, which is below the industry midpoint. Overall, McDonald's has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does McDonald's' EV-to-EBITDA compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #229 out of 308 companies for EV-to-EBITDA. This places McDonald's in the lower half of its industry. The industry median EV-to-EBITDA is 9.57. McDonald's' value of 16.58 is 73.3% above this benchmark. Historically, McDonald's' own EV-to-EBITDA has ranged from 12.79 to 23.84 over the past decade. While the company's 10-year median is 18.86 vs. the industry median of 9.57, McDonald's has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBITDA for a Restaurants company?
The median EV-to-EBITDA among Restaurants companies is 9.57, based on 308 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current EV-to-EBITDA of 16.58 is 73.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on McDonald's. For the Restaurants industry, the median EV-to-EBITDA is 9.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current EV-to-EBITDA is 16.58, which is 12% below median its own 10-year median of 18.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's stock overvalued right now?
McDonald's (XSWX:MCD) has a current EV-to-EBITDA of 16.58. The stock's GF Value™ is CHF266.18, compared to a current price of CHF219.05 — trading 17.7% below its estimated fair value. The current EV-to-EBITDA is 16.58, which is 12% below median its 10-year median of 18.86 and 73.3% above the Restaurants industry median of 9.57. McDonald's' overall GF Score™ is 74/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current EV-to-EBITDA is 16.58 as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is McDonald's (XSWX:MCD) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of CHF219.05 is trading 17.7% below its estimated GF Value™ of CHF266.18.
Key valuation signals for XSWX:MCD:
EV-to-EBITDA: 16.58 (12% below median its 10-year median of 18.86)
GF Value™: CHF266.18 vs. price of CHF219.05 (17.7% below fair value)
Industry Position: 73.3% above the Restaurants median (#229 of 308)
No single metric tells the full story. See the XSWX:MCD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's is the world's largest restaurant brand, with nearly $139 billion in systemwide sales across more than 45,000 restaurants and over 100 markets. The quick-service chain built its early reputation on speed, consistency, and affordable hamburgers, and today its global menu spans burgers, chicken, breakfast, and beverages that have helped popularize American fast-food cuisine worldwide. The firm derives the bulk of its revenue from franchise royalties and rent (about 62%), with the remainder stemming from company-operated restaurants across three segments: the United States (39% of systemwide sales), international operated markets (35%), and international developmental/licensed markets (26%).
74GF Score
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