EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, McDonald's's Enterprise Value is $265,406 Mil.
McDonald's's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2025 was $6,704 Mil. Therefore, McDonald's's EV-to-FCF for today is 39.59.
The historical rank and industry rank for McDonald's's EV-to-FCF or its related term are showing as below:
MCD'
s EV-to-FCF Range Over the Past 10 Years
Min: 23.27 Med: 38.79 Max: 62.07
Current: 39.59
During the past 13 years, the highest EV-to-FCF of McDonald's was 62.07. The lowest was 23.27. And the median was 38.79.
MCD's EV-to-FCF is ranked worse than 75.65% of 271
companies
in the Restaurants industry
Industry Median: 18.92
vs MCD: 39.59
EV-to-FCF 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.
The historical data trend for McDonald's's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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's EV-to-FCF Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where McDonald's's EV-to-FCF falls into.
McDonald's's current Enterprise Value is $265,406 Mil.
McDonald's's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $6,704 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 (NYSE:MCD) EV-to-FCF Explanation
EV-to-FCF 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 $298.02.
McDonald's's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $11.330.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
McDonald's EV-to-FCF Related Terms
Thank you for viewing the detailed overview of McDonald's's EV-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
McDonald's is the largest restaurant owner-operator in the world, with 2024 system sales of $131 billion across more than 43,000 stores and 115 markets. McDonald's pioneered the franchise model, building its footprint through partnerships with independent restaurant franchisees and master franchise partners around the globe. The firm earns roughly 60% of its revenue from franchise royalty fees and lease payments, with most of the remainder coming from company-operated stores across its three core segments: the United States, internationally operated markets, and international developmental/licensed markets.
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