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McDonald’s Corp. (MCD)
Enterprise Value to FCFF (EV/FCFF)
Difficulty: Intermediate
Free Cash Flow to The Firm (FCFF)
McDonald’s Corp., FCFF calculation
USD $ in thousands
Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).
1, 2 See Details »
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the McDonald’s Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | McDonald’s Corp.’s FCFF declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level. |
Interest Paid, Net of Tax
McDonald’s Corp., interest paid, net of tax calculation
USD $ in thousands
Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).
2018 Calculations
2 Interest paid, tax = Interest paid × EITR
= × =
3 Capitalized interest, tax = Capitalized interest × EITR
= × =
Enterprise Value to FCFF Ratio, Current
McDonald’s Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (USD $ in thousands) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors | |
| Booking Holdings Inc. | |
| Delta Air Lines Inc. | |
| Marriott International Inc. | |
| Starbucks Corp. | |
| EV/FCFF, Sector | |
| Travel & Leisure | |
| EV/FCFF, Industry | |
| Consumer Services | |
Based on: 10-K (filing date: 2019-02-22).
If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
McDonald’s Corp., historical EV/FCFF calculation, comparison to benchmarks
Based on: 10-K (filing date: 2019-02-22), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-03-01), 10-K (filing date: 2016-02-25), 10-K (filing date: 2015-02-24).
2018 Calculations
3 EV/FCFF = EV ÷ FCFF
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | McDonald’s Corp.’s EV/FCFF ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018. |