Price to FCFE (P/FCFE)
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Free Cash Flow to Equity (FCFE)
McDonald’s Corp., FCFE calculation
US$ in millions
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).
- Cash provided by operations
- The cash flow generated from operations exhibited an overall positive trend over the five-year period, starting at 6,265 million USD in 2020 and increasing to a peak of 9,612 million USD in 2023. Although there was a slight decline in 2022 to 7,387 million USD from the previous year's 9,142 million USD, the cash provided by operations rebounded significantly the following year. The value slightly decreased in 2024 to 9,447 million USD, indicating a relatively stable high level of operational cash generation towards the end of the period.
- Free cash flow to equity (FCFE)
- The FCFE displayed more volatility compared to operational cash flow. It began at 6,863 million USD in 2020 and declined to 6,031 million USD in 2021, marking the lowest point during the period. The FCFE then increased to 6,685 million USD in 2022, followed by a pronounced peak at 10,247 million USD in 2023, coinciding with the peak year for cash provided by operations. However, the FCFE sharply declined again in 2024 to 6,601 million USD, reflecting fluctuations that may be attributed to changes in capital expenditures, financing activities, or working capital adjustments impacting the equity holders' available free cash flow.
- Summary of trends
- Overall, operational cash flow indicates strong and generally increasing capacity to generate cash from business activities, with a minor mid-period dip. The FCFE trends are less consistent, showing significant fluctuations likely influenced by investment and financing strategies. The peak in 2023 for both indicators suggests a particularly favorable year for cash generation and equity cash availability, while the subsequent decline in FCFE signals potential variability in financial policy or business conditions impacting equity cash flow generation.
Price to FCFE Ratio, Current
McDonald’s Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Airbnb Inc. | |
| Booking Holdings Inc. | |
| Chipotle Mexican Grill Inc. | |
| Starbucks Corp. | |
| P/FCFE, Sector | |
| Consumer Services | |
| P/FCFE, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
McDonald’s Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| Starbucks Corp. | ||||||
| P/FCFE, Sector | ||||||
| Consumer Services | ||||||
| P/FCFE, Industry | ||||||
| Consumer Discretionary | ||||||
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).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of McDonald’s Corp. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price
- The share price showed a consistent upward trend over the five-year period. Starting at $211.32 at the end of 2020, it increased steadily each year to reach $310.72 by the end of 2024. This represents a cumulative gain, indicating positive market sentiment or strong investor confidence in the company's prospects.
- Free Cash Flow to Equity (FCFE) per Share
- FCFE per share exhibited variability during the period. It began at $9.20 in 2020, decreased to $8.11 in 2021, slightly recovered to $9.14 in 2022, then significantly rose to $14.19 in 2023 before dropping back to $9.24 in 2024. This fluctuation suggests changes in the company's cash generation capability available to equity shareholders, possibly influenced by operational performance, capital expenditures, or financing activities.
- Price to FCFE Ratio (P/FCFE)
- The P/FCFE ratio demonstrated notable volatility. It rose from 22.96 in 2020 to a peak of 30.21 in 2021, then slightly decreased to 28.85 in 2022, followed by a considerable drop to 20.85 in 2023. In 2024, the ratio sharply increased to 33.63. These variations indicate changes in market valuation relative to Free Cash Flow to Equity per share. The lower ratio in 2023 corresponds with the higher FCFE per share, suggesting improved underlying cash flow value relative to price, while the high ratio in 2024 might reflect increased stock price relative to cash flow, or potentially market optimism despite the lower FCFE per share.