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McDonald'sXSWX:MCD -1.15%74 EV-to-OCF is 23.58 as of Jul. 15, 2026, which is 12% below its 10-year median of 26.86. 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 363 Restaurants companies, McDonald's ranks worse than 82.92% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, McDonald's's Enterprise Value is CHF198,100 Mil.
McDonald's's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was CHF8,402 Mil. Therefore, McDonald's's EV-to-OCF for today is 23.58.
The historical rank and industry rank for McDonald's's EV-to-OCF or its related term are showing as below:
XSWX:MCD'
s EV-to-OCF Range Over the Past 10 Years
Min: 17.8 Med: 26.86 Max: 38.77
Current: 23.24
During the past 13 years, the highest EV-to-OCF of McDonald's was 38.77. The lowest was 17.80. And the median was 26.86.
XSWX:MCD's EV-to-OCF is ranked worse than 82.92% of 363
companies
in the Restaurants industry
Industry Median: 10
vs XSWX:MCD: 23.24
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
McDonald's EV-to-OCF Related Terms
McDonald's EV-to-OCF Historical Data
* Premium members only.
The historical data trend for McDonald's's EV-to-OCF 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.
For the Restaurants subindustry, McDonald's's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where McDonald's's EV-to-OCF falls into.
McDonald's's current Enterprise Value is CHF198,100 Mil.
McDonald's's Cash Flow from Operations 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 CHF8,402 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-OCF of 23.58 as of Jul. 15, 2026. This is 12% below median its historical median of 26.86. Over the past decade, McDonald's' EV-to-OCF has ranged from 17.80 to 38.77. According to the industry distribution chart, McDonald's ranks #301 out of 363 companies in the Restaurants industry, placing it in the top 82.9%.
Is McDonald's' EV-to-OCF too high?
McDonald's' current EV-to-OCF of 23.58 is 12% below median its 10-year median of 26.86. Over the past 10 years, this metric has ranged from a low of 17.80 to a high of 38.77. The Restaurants industry median EV-to-OCF is 10.00. McDonald's' value of 23.58 is 135.8% above this industry median. Based on the distribution chart, McDonald's ranks #301 out of 363 companies in the Restaurants industry, which is in the bottom quartile relative to peers. 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-OCF compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #301 out of 363 companies for EV-to-OCF. This places McDonald's in the lower half of its industry. The industry median EV-to-OCF is 10.00. McDonald's' value of 23.58 is 135.8% above this benchmark. Historically, McDonald's' own EV-to-OCF has ranged from 17.80 to 38.77 over the past decade. While the company's 10-year median is 26.86 vs. the industry median of 10.00, 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-OCF for a Restaurants company?
The median EV-to-OCF among Restaurants companies is 10.00, based on 363 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current EV-to-OCF of 23.58 is 135.8% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Restaurants industry, the median EV-to-OCF is 10.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current EV-to-OCF is 23.58, which is 12% below median its own 10-year median of 26.86. 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-OCF of 23.58. 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-OCF is 23.58, which is 12% below median its 10-year median of 26.86 and 135.8% above the Restaurants industry median of 10.00. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current EV-to-OCF is 23.58 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-OCF: 23.58 (12% below median its 10-year median of 26.86)
GF Value™: CHF266.18 vs. price of CHF219.05 (17.7% below fair value)
Industry Position: 135.8% above the Restaurants median (#301 of 363)
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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