Price to Book Value (P/BV)
since 2005
Calculation
McDonald’s Corp., P/BV, long-term trends, calculation
| P/BV | = | Share price1, 2, 3 | ÷ | Book value per share1 (BVPS) | BVPS1 | = | Shareholders’ equity (deficit)1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 25, 2025 | — | = | 310.72 | ÷ | -5.31 | -5.31 | = | -3,797 | ÷ | 714,461,139 | |
| Feb 22, 2024 | — | = | 295.92 | ÷ | -6.52 | -6.52 | = | -4,707 | ÷ | 722,051,488 | |
| Feb 24, 2023 | — | = | 263.68 | ÷ | -8.21 | -8.21 | = | -6,003 | ÷ | 731,496,951 | |
| Feb 24, 2022 | — | = | 245.03 | ÷ | -6.19 | -6.19 | = | -4,601 | ÷ | 743,584,718 | |
| Feb 23, 2021 | — | = | 211.32 | ÷ | -10.50 | -10.50 | = | -7,825 | ÷ | 745,572,145 | |
| Feb 26, 2020 | — | = | 210.10 | ÷ | -11.01 | -11.01 | = | -8,210 | ÷ | 745,446,655 | |
| Feb 22, 2019 | — | = | 183.17 | ÷ | -8.18 | -8.18 | = | -6,258 | ÷ | 765,317,332 | |
| Feb 23, 2018 | — | = | 163.06 | ÷ | -4.11 | -4.11 | = | -3,268 | ÷ | 794,497,880 | |
| Mar 1, 2017 | — | = | 129.05 | ÷ | -2.69 | -2.69 | = | -2,204 | ÷ | 818,993,182 | |
| Feb 25, 2016 | 15.06 | = | 118.37 | ÷ | 7.86 | 7.86 | = | 7,088 | ÷ | 901,607,888 | |
| Feb 24, 2015 | 7.10 | = | 94.98 | ÷ | 13.37 | 13.37 | = | 12,853 | ÷ | 961,118,669 | |
| Feb 24, 2014 | 5.97 | = | 96.50 | ÷ | 16.17 | 16.17 | = | 16,010 | ÷ | 989,881,374 | |
| Feb 25, 2013 | 6.30 | = | 96.14 | ÷ | 15.25 | 15.25 | = | 15,294 | ÷ | 1,002,791,769 | |
| Feb 24, 2012 | 7.10 | = | 100.32 | ÷ | 14.13 | 14.13 | = | 14,390 | ÷ | 1,018,555,678 | |
| Feb 25, 2011 | 5.31 | = | 74.44 | ÷ | 14.03 | 14.03 | = | 14,634 | ÷ | 1,043,298,941 | |
| Feb 26, 2010 | 4.90 | = | 63.85 | ÷ | 13.04 | 13.04 | = | 14,034 | ÷ | 1,075,960,799 | |
| Feb 25, 2009 | 4.52 | = | 54.29 | ÷ | 12.02 | 12.02 | = | 13,383 | ÷ | 1,113,621,747 | |
| Feb 25, 2008 | 4.22 | = | 56.05 | ÷ | 13.27 | 13.27 | = | 15,280 | ÷ | 1,151,643,390 | |
| Feb 26, 2007 | 3.57 | = | 45.80 | ÷ | 12.84 | 12.84 | = | 15,458 | ÷ | 1,203,480,015 | |
| Feb 27, 2006 | 2.92 | = | 35.25 | ÷ | 12.05 | 12.05 | = | 15,146 | ÷ | 1,256,645,011 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of McDonald’s Corp. Annual Report.
- Share Price Trend
- The share price demonstrates a general upward trend from 35.25 US$ in 2006 to 310.72 US$ projected in 2025. Initial growth is consistent, rising steadily especially between 2006 and 2012. After some fluctuations around 2013 to 2015, share price increased sharply from 118.37 US$ in 2016 to above 295 US$ by 2024, indicating strong market confidence and potential appreciation in market value over the period.
- Book Value per Share (BVPS)
- The BVPS starts at 12.05 US$ in 2006 and shows moderate increases until 2013 when it peaks at 16.17 US$. Subsequently, it experiences a significant decline, turning negative by 2017 and remaining negative through 2025. This downward movement followed by consistently negative values suggests potential challenges in retained earnings, asset valuation, or accumulated losses impacting shareholders’ equity.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio increases from 2.92 in 2006 to a peak of 15.06 by 2016, indicating an escalating premium investors are willing to pay relative to the book value per share. Data beyond 2016 is incomplete, but earlier trends suggest a high valuation despite declining book value. The absence of P/BV values post-2016 likely relates to the negative BVPS, making ratio calculation invalid or non-meaningful.
- Overall Financial Insight
- The data reflects strong market valuation and investor confidence as evidenced by rising share prices. However, the deterioration and negative trend in book value per share raise concerns about the underlying equity position and asset quality. The sharp rise in P/BV ratio before data ceases suggests a disconnect between market price and accounting book value. This combination indicates that market expectations may be driven by intangible assets, growth prospects, or earnings potential rather than net asset base.
Comparison to Competitors
McDonald’s Corp., P/BV, long-term trends, comparison to competitors
| McDonald’s Corp. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | Starbucks Corp. | |
|---|---|---|---|---|---|
| Feb 25, 2025 | — | 10.57 | — | 21.32 | — |
| Feb 22, 2024 | — | 12.09 | — | 23.47 | — |
| Feb 24, 2023 | — | 15.16 | 32.84 | 18.74 | — |
| Feb 24, 2022 | — | 20.88 | 16.35 | 19.05 | — |
| Feb 23, 2021 | — | 43.27 | 20.46 | 21.52 | — |
| Feb 26, 2020 | — | — | 11.61 | 14.09 | — |
| Feb 22, 2019 | — | — | 9.77 | 11.19 | 72.30 |
| Feb 23, 2018 | — | — | 8.03 | 5.45 | 14.86 |
| Mar 1, 2017 | — | — | 8.17 | 8.18 | 13.79 |
| Feb 25, 2016 | 15.06 | — | 6.97 | 6.49 | 15.59 |
| Feb 24, 2015 | 7.10 | — | 7.38 | 10.42 | 11.09 |
| Feb 24, 2014 | 5.97 | — | 9.68 | 10.94 | 13.55 |
| Feb 25, 2013 | 6.30 | — | 8.91 | 7.98 | 7.10 |
| Feb 24, 2012 | 7.10 | — | 11.44 | 11.27 | 7.14 |
| Feb 25, 2011 | 5.31 | — | 12.47 | 10.16 | 6.23 |
| Feb 26, 2010 | 4.90 | — | 7.95 | 4.71 | 5.21 |
| Feb 25, 2009 | 4.52 | — | 4.70 | 2.76 | 2.49 |
| Feb 25, 2008 | 4.22 | — | 7.55 | 6.13 | 7.37 |
| Feb 26, 2007 | 3.57 | — | 5.73 | 4.44 | 12.40 |
| Feb 27, 2006 | 2.92 | — | 2.53 | 5.68 | 11.40 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Services)
McDonald’s Corp., P/BV, long-term trends, comparison to sector (consumer services)
| McDonald’s Corp. | Consumer Services | |
|---|---|---|
| Feb 25, 2025 | — | — |
| Feb 22, 2024 | — | — |
| Feb 24, 2023 | — | — |
| Feb 24, 2022 | — | 167.21 |
| Feb 23, 2021 | — | — |
| Feb 26, 2020 | — | — |
| Feb 22, 2019 | — | 63.58 |
| Feb 23, 2018 | — | 20.82 |
| Mar 1, 2017 | — | 18.69 |
| Feb 25, 2016 | 15.06 | 11.44 |
| Feb 24, 2015 | 7.10 | 8.15 |
| Feb 24, 2014 | 5.97 | 8.29 |
| Feb 25, 2013 | 6.30 | 6.94 |
| Feb 24, 2012 | 7.10 | 7.80 |
| Feb 25, 2011 | 5.31 | 6.28 |
| Feb 26, 2010 | 4.90 | 5.15 |
| Feb 25, 2009 | 4.52 | 4.17 |
| Feb 25, 2008 | 4.22 | 4.77 |
| Feb 26, 2007 | 3.57 | 4.69 |
| Feb 27, 2006 | 2.92 | 3.95 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
McDonald’s Corp., P/BV, long-term trends, comparison to industry (consumer discretionary)
| McDonald’s Corp. | Consumer Discretionary | |
|---|---|---|
| Feb 25, 2025 | — | 32.00 |
| Feb 22, 2024 | — | 10.11 |
| Feb 24, 2023 | — | 9.55 |
| Feb 24, 2022 | — | 13.30 |
| Feb 23, 2021 | — | 18.17 |
| Feb 26, 2020 | — | 13.59 |
| Feb 22, 2019 | — | 11.35 |
| Feb 23, 2018 | — | 10.74 |
| Mar 1, 2017 | — | 8.39 |
| Feb 25, 2016 | 15.06 | 7.17 |
| Feb 24, 2015 | 7.10 | 5.83 |
| Feb 24, 2014 | 5.97 | 5.12 |
| Feb 25, 2013 | 6.30 | 4.39 |
| Feb 24, 2012 | 7.10 | 3.84 |
| Feb 25, 2011 | 5.31 | 4.04 |
| Feb 26, 2010 | 4.90 | 4.73 |
| Feb 25, 2009 | 4.52 | 4.98 |
| Feb 25, 2008 | 4.22 | 3.91 |
| Feb 26, 2007 | 3.57 | 4.50 |
| Feb 27, 2006 | 2.92 | 3.49 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).