DCF Tool

MCD

McDonald`s Corp – Food Service Contractors
McDonald's is the world's leading global foodservice retailer with over 39,000 locations in over 100 countries. Approximately 93% of McDonald's restaurants worldwide are owned and operated by independent local business owners.
Analysis Results
Intrinsic Value $227.44
Latest Price $230.74
Relative Value 1% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 6.42 6.06
2023 6.68 5.95
2024 6.95 5.84
2025 7.23 5.74
2026 7.52 5.64
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 195 billion. This corresponds to a present value of 138 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 29.2 billion. Adding in the terminal value gives a total present value of 167 billion.

There are presently 736.0 million outstanding shares, so the intrinsic value per share is 227.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,148,500,000
Current Cash 4,709,200,000
Current Liabilities 4,020,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,580,700,000
Change in NCWC -437,200,000
EBIT 10,146,000,000
Tax Provision 1,582,700,000
Depreciation and Amortization 1,868,100,000
Capital Expenditure -2,040,000,000
Unlevered Free Cash Flow 7,777,670,144
Current Assets 6,243,200,000
Current Cash 3,449,100,000
Current Liabilities 6,181,200,000
Current Debt 2,243,600,000
Non-Cash Working Capital (NCWC) -1,143,500,000
Change in NCWC -241,000,000
EBIT 7,347,200,000
Tax Provision 1,410,200,000
Depreciation and Amortization 1,751,400,000
Capital Expenditure -1,640,800,000
Unlevered Free Cash Flow 5,529,529,584
Current Assets 3,557,900,000
Current Cash 898,500,000
Current Liabilities 3,621,000,000
Current Debt 59,100,000
Non-Cash Working Capital (NCWC) -902,500,000
Change in NCWC -1,116,200,000
EBIT 9,167,200,000
Tax Provision 1,992,700,000
Depreciation and Amortization 1,617,900,000
Capital Expenditure -2,393,700,000
Unlevered Free Cash Flow 4,996,919,679
Current Assets 4,053,200,000
Current Cash 866,000,000
Current Liabilities 2,973,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 213,700,000
Change in NCWC 240,900,000
EBIT 9,041,400,000
Tax Provision 1,891,800,000
Depreciation and Amortization 1,482,000,000
Capital Expenditure -2,741,700,000
Unlevered Free Cash Flow 5,834,229,774
Current Assets 5,327,200,000
Current Cash 2,463,800,000
Current Liabilities 2,890,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) -27,200,000
Change in NCWC -261,300,000
EBIT 8,868,600,000
Tax Provision 3,381,200,000
Depreciation and Amortization 1,363,400,000
Capital Expenditure -1,853,700,000
Unlevered Free Cash Flow 4,619,419,044
Current Assets 4,848,600,000
Current Cash 1,223,400,000
Current Liabilities 3,468,300,000
Current Debt 77,200,000
Non-Cash Working Capital (NCWC) 234,100,000
Change in NCWC 1,227,000,000
EBIT 8,158,400,000
Tax Provision 2,179,500,000
Depreciation and Amortization 1,516,500,000
Capital Expenditure -1,821,100,000
Unlevered Free Cash Flow 6,491,048,645
Current Assets 9,643,000,000
Current Cash 7,685,500,000
Current Liabilities 2,950,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) -992,900,000
Change in NCWC -352,600,000
EBIT 7,354,000,000
Tax Provision 2,026,400,000
Depreciation and Amortization 1,555,700,000
Capital Expenditure -1,813,900,000
Unlevered Free Cash Flow 4,470,041,435
Current Assets 4,185,500,000
Current Cash 2,077,900,000
Current Liabilities 2,747,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) -640,300,000
Change in NCWC 278,300,000
EBIT 8,096,300,000
Tax Provision 2,614,200,000
Depreciation and Amortization 1,644,500,000
Capital Expenditure -2,583,400,000
Unlevered Free Cash Flow 4,564,654,495
Current Assets 5,050,100,000
Current Cash 2,798,700,000
Current Liabilities 3,170,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -918,600,000
Change in NCWC -101,500,000
EBIT 8,794,700,000
Tax Provision 2,618,600,000
Depreciation and Amortization 1,585,100,000
Capital Expenditure -2,824,700,000
Unlevered Free Cash Flow 4,646,628,043
Current Assets 4,922,100,000
Current Cash 2,336,100,000
Current Liabilities 3,403,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) -817,100,000
Change in NCWC 258,200,000
EBIT 8,656,100,000
Tax Provision 2,614,200,000
Depreciation and Amortization 1,488,500,000
Capital Expenditure -3,049,200,000
Unlevered Free Cash Flow 4,552,662,183

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