Stock Valuation / MCD
Is McDonald's Corporation (MCD) Overvalued? Fair Value & 5-Year Target
McDonald's Corporation trades at $235.81 (P/E 19.16). Our reference model estimates a fair value of $250.18 at its recent average P/E of 20.32.
| Current price | $235.81 |
|---|---|
| Current EPS | $12.31 |
| Current P/E | 19.16 |
| Average P/E | 20.32 |
| Fair value (at avg P/E) | $250.18 |
| Upside to fair value | +6.1% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $619.00 |
What drives MCD's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About McDonald's Corporation
McDonald's Corporation owns, operates, and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, frozen desserts, sundaes, soft serve cones, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions. The company owns and operates franchised restaurants under various structures, including conventional franchise, developmental license, or affiliate. McDonald's Corporation was founded in 1940 and is based in Chicago, Illinois.
Frequently asked questions
What is MCD's fair value?
At its recent average P/E of 20.32, McDonald's Corporation (MCD) has a reference fair value of about $250.18, which is +6.1% versus the current price of $235.81.
Is McDonald's Corporation (MCD) overvalued or undervalued?
Based on the average-P/E reference model, McDonald's Corporation looks undervalued relative to fair value by roughly +6.1%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for MCD?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $619.00. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive MCD valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.