McDonald
MCD
#49
Rank
$172.12 B
Marketcap
$233.96
Share price
-0.34%
Change (1 day)
-5.32%
Change (1 year)

McDonaldโ€™s Corporation is an American operator and franchisor of fast food restaurants represented worldwide and the biggest fast food company in the world.

P/E ratio for McDonald (MCD)

P/E ratio as of October 2022 (TTM): 28.7

According to McDonald's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 28.6787. At the end of 2021 the company had a P/E ratio of 26.5.

P/E ratio history for McDonald from 2001 to 2022

PE ratio at the end of each year

Year P/E ratio Change
202126.5-21.5%
202033.836.4%
201924.86.69%
201823.2-12.93%
201726.721.04%
201622.0-9.03%
201524.225.82%
201419.211.15%
201317.36.46%
201216.3

How to read a P/E ratio?

The Price/Earnings ratio measures the relationship between a company's stock price and its earnings per share. A low but positive P/E ratio stands for a company that is generating high earnings compared to its current valuation and might be undervalued. A company with a high negative (near 0) P/E ratio stands for a company that is generating heavy losses compared to its current valuation.

Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future.
Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future.