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McDonald'sXSWX:MCD +2.45%74 Shiller PE Ratio is 27.52 as of Jul. 29, 2026, which is 15% below its 10-year median of 32.23. GuruFocus rates XSWX:MCD with a GF Score™ of 74/100 and a GF Value™ of CHF270.53. The stock has 2 warning signs investors should review. Among 154 Restaurants companies, McDonald's ranks worse than 55.84% on this metric.
As of today (2026-07-29), McDonald's's current share price is CHF225.70. McDonald's's E10 for the quarter that ended in Mar. 2026 was CHF8.20. McDonald's's Shiller PE Ratio for today is 27.52.
The historical rank and industry rank for McDonald's's Shiller PE Ratio or its related term are showing as below:
XSWX:MCD'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 23.04 Med: 32.23 Max: 37.83
Current: 26.42
During the past years, McDonald's's highest Shiller PE Ratio was 37.83. The lowest was 23.04. And the median was 32.23.
XSWX:MCD's Shiller PE Ratio is ranked worse than 55.84% of 154
companies
in the Restaurants industry
Industry Median: 23.905
vs XSWX:MCD: 26.42
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
McDonald's's adjusted earnings per share data for the three months ended in Mar. 2026 was CHF2.189. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is CHF8.20 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
McDonald's (XSWX:MCD) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
McDonald's Shiller PE Ratio Related Terms
McDonald's Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for McDonald's's Shiller PE Ratio 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: Shiller PE Ratio Comparison
For the Restaurants subindustry, McDonald's's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where McDonald's's Shiller PE Ratio falls into.
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
McDonald's's Shiller PE Ratio for today is calculated as
* 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's E10 for the quarter that ended in Mar. 2026 is calculated as:
For example, McDonald's's adjusted earnings per share data for the three months ended in Mar. 2026 was:
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
McDonald's (XSWX:MCD) has a Shiller PE Ratio of 27.52 as of Jul. 29, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on McDonald's and its competitors. This is 15% below median its historical median of 32.23. Over the past decade, McDonald's' Shiller PE Ratio has ranged from 23.04 to 37.83. According to the industry distribution chart, McDonald's ranks #86 out of 154 companies in the Restaurants industry, placing it in the top 55.8%.
Is McDonald's' Shiller PE Ratio too high?
McDonald's' current Shiller PE Ratio of 27.52 is 15% below median its 10-year median of 32.23. Over the past 10 years, this metric has ranged from a low of 23.04 to a high of 37.83. The Restaurants industry median Shiller PE Ratio is 23.91. McDonald's' value of 27.52 is 15.1% above this industry median. Based on the distribution chart, McDonald's ranks #86 out of 154 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' Shiller PE Ratio compare to SBUX and YUM?
According to the Restaurants industry distribution chart, McDonald's ranks #86 out of 154 companies for Shiller PE Ratio. This places McDonald's in the lower half of its industry. The industry median Shiller PE Ratio is 23.91. McDonald's' value of 27.52 is 15.1% above this benchmark. Historically, McDonald's' own Shiller PE Ratio has ranged from 23.04 to 37.83 over the past decade. While the company's 10-year median is 32.23 vs. the industry median of 23.91, 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 Shiller PE Ratio for a Restaurants company?
The median Shiller PE Ratio among Restaurants companies is 23.91, based on 154 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Shiller PE Ratio of 27.52 is 15.1% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Shiller PE Ratio is 23.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Shiller PE Ratio is 27.52, which is 15% below median its own 10-year median of 32.23. 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 Shiller PE Ratio of 27.52. The stock's GF Value™ is CHF270.53, compared to a current price of CHF225.70 — trading 16.6% below its estimated fair value. The current Shiller PE Ratio is 27.52, which is 15% below median its 10-year median of 32.23 and 15.1% above the Restaurants industry median of 23.91. 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 Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For McDonald's (XSWX:MCD), the current Shiller PE Ratio is 27.52 as of Jul. 29, 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 CHF225.70 is trading 16.6% below its estimated GF Value™ of CHF270.53.
Key valuation signals for XSWX:MCD:
Shiller PE Ratio: 27.52 (15% below median its 10-year median of 32.23)
GF Value™: CHF270.53 vs. price of CHF225.70 (16.6% below fair value)
Industry Position: 15.1% above the Restaurants median (#86 of 154)
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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