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McDonald’s Corp. (NYSE:MCD)

Enterprise Value (EV)

Intermediate level

Current Enterprise Value (EV)

McDonald’s Corp., current enterprise value calculation

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Current share price (P) $193.29
No. shares of common stock outstanding 743,556,182
US$ in thousands
Common equity (market value)1 143,721,974 
Add: Preferred stock, no par value; issued none (per books) — 
Total equity 143,721,974 
Add: Current maturities of long-term debt (per books) 59,100 
Add: Long-term debt, excluding current maturities (per books) 34,118,100 
Total equity and debt 177,899,174 
Less: Cash and equivalents 898,500 
Enterprise value (EV) 177,000,674 

Based on: 10-K (filing date: 2020-02-26).

1 Common equity (market value) = Share price × No. shares of common stock outstanding
= 193.29 × 743,556,182

Historical Enterprise Value (EV)

McDonald’s Corp., EV calculation

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Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Share price1, 2 $210.10 $183.17 $163.06 $129.05 $118.37
No. shares of common stock outstanding1 745,446,655 765,317,332 794,497,880 818,993,182 901,607,888
US$ in thousands
Common equity (market value)3 156,618,342  140,183,176  129,550,824  105,691,070  106,723,326 
Add: Preferred stock, no par value; issued none (book value) —  —  —  —  — 
Total equity 156,618,342  140,183,176  129,550,824  105,691,070  106,723,326 
Add: Current maturities of long-term debt (book value) 59,100  —  —  77,200  — 
Add: Long-term debt, excluding current maturities (book value) 34,118,100  31,075,300  29,536,400  25,878,500  24,122,100 
Total equity and debt 190,795,542  171,258,476  159,087,224  131,646,770  130,845,426 
Less: Cash and equivalents 898,500  866,000  2,463,800  1,223,400  7,685,500 
Enterprise value (EV) 189,897,042  170,392,476  156,623,424  130,423,370  123,159,926 

Based on: 10-K (filing date: 2020-02-26), 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).

1 Data adjusted for splits and stock dividends.

2 Closing price as at the filing date of McDonald’s Corp.’s Annual Report.

3 2019 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 210.10 × 745,446,655

Item Description The company
EV Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments. McDonald’s Corp.’s EV increased from 2017 to 2018 and from 2018 to 2019.