McDonald's (MCD) fundamentals: P/E, valuation, undervalued?
McDonald's · Consumer Discretionary · ref. ETF XLY · price $260.06
In short — McDonald's trades at 21.7× earnings (P/E), 18.6× forward, with a net margin of 31.7 % and revenue growth of +4 %. Read: Average P/E (P/E 22 (near the ~20-25 average)).
Is McDonald's stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.
📈 1-year price
$260.06-16.7% over range
Aug 28, 25low $260.06 · high $341.06Aug 27, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Buy
60% recommend buying · 15 analysts
Valuation : Average P/E — P/E 22 (near the ~20-25 average)
Valuation
21.7
P/E (price/earnings)
18.6
Forward P/E
3.81
PEG
—
Price/book (P/B)
$184.0B
Market cap
11.99
EPS
Profitability & growth
31.7 %
Net margin
+4 %
Revenue growth
+6 %
Earnings growth
$54.6B
Total debt
McDonald's income statement
| Fiscal year | Revenue | Net income | Margin |
|---|---|---|---|
| 2022 | $23.2B | $6.2B | 26.6 % |
| 2023 | $25.5B | $8.5B | 33.2 % |
| 2024 | $25.9B | $8.2B | 31.7 % |
| 2025 | $26.9B | $8.6B | 31.9 % |
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.
Frequently asked questions
What is McDonald's's P/E and is the stock undervalued? What's a good P/E?
McDonald's's P/E is 21.7 (forward 18.6). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Average P/E".
Is McDonald's profitable?
McDonald's has a net margin of 31.7 % (EPS 11.99). The company is profitable.
Is MCD stock expensive?
Our read: "Average P/E" — P/E 22 (near the ~20-25 average). Cross-check with growth and sector.
💬 A question about McDonald's? The JPI assistant answers using our backtest data.