McDonald's (MCD) fundamentals: P/E, valuation, undervalued?
McDonald's · Consumer Discretionary · ref. ETF XLY · price $235.81
In short — McDonald's trades at 19.2× earnings (P/E), 17.1× forward, with a net margin of 31.7 % and revenue growth of +4 %. Read: Average P/E (P/E 19 (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
$235.81-22.6% over range
Oct 14, 25low $230.88 · high $341.06Oct 13, 26
📏 Click 2 points (left → right) to measure the change · click again to clear.
SellBuy
Buy
57% recommend buying · 21 analysts
Valuation : Average P/E — P/E 19 (near the ~20-25 average)
Valuation
19.2
P/E (price/earnings)
17.1
Forward P/E
3.36
PEG
—
Price/book (P/B)
$166.9B
Market cap
12.31
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 19.2 (forward 17.1). 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 12.31). The company is profitable.
Is MCD stock expensive?
Our read: "Average P/E" — P/E 19 (near the ~20-25 average). Cross-check with growth and sector.
💬 A question about McDonald's? The JPI assistant answers using our backtest data.