Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Historical Valuation Ratios (Summary)
McDonald’s Corp., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Price to earnings (P/E) ratio
- The P/E ratio shows a fluctuating trend from March 31, 2021, to March 31, 2025. Initially, it decreased from approximately 33.3 in early 2021 to around 22.5 by late 2023, indicating a reduction in market valuation relative to earnings. Subsequently, it experienced a slight upward movement, reaching about 27.3 by early 2025. This suggests some recovery or renewed investor confidence towards the end of the period.
- Price to operating profit (P/OP) ratio
- The P/OP ratio exhibited a generally declining pattern from 21.5 in the first quarter of 2021 to a low of approximately 16.3 by mid-2024. Following this, a modest upward trend is observed, culminating in a ratio near 19.2 by the first quarter of 2025. This indicates that the market price relative to operating profit valuation decreased initially, potentially reflecting improved operating profitability or caution in price growth, before stabilizing and slightly increasing.
- Price to sales (P/S) ratio
- The P/S ratio showed moderate volatility, starting at 8.2 in early 2021, rising to a peak of about 9.2 by late 2022, and then declining to roughly 7.5 by mid-2024. Towards the end of the observed period, it rose again to around 8.7 by early 2025. This pattern suggests fluctuating investor sentiment or sales performance, with periods of optimism and caution reflected in the relative valuation of price to sales.
- Price to book value (P/BV) ratio
- No data was available for the P/BV ratio throughout the entire observed period, preventing analysis or trend identification for this metric.
Price to Earnings (P/E)
McDonald’s Corp., historical P/E calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 715,032,727 | 714,461,139 | 716,619,686 | 717,343,247 | 720,681,656 | 722,051,488 | 725,342,030 | 728,763,452 | 730,093,896 | 731,496,951 | 732,423,892 | 735,717,271 | 739,546,930 | 743,584,718 | 747,245,427 | 746,798,875 | 746,174,284 | 745,572,145 | 745,110,988 | 744,102,514 | 743,556,182 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Net income (in millions) | 1,868) | 2,017) | 2,255) | 2,022) | 1,929) | 2,039) | 2,317) | 2,310) | 1,802) | 1,903) | 1,982) | 1,188) | 1,104) | 1,639) | 2,150) | 2,219) | 1,537) | 1,377) | 1,763) | 484) | 1,107) | |||||||
| Earnings per share (EPS)2 | 11.41 | 11.51 | 11.51 | 11.58 | 11.93 | 11.73 | 11.49 | 10.97 | 9.42 | 8.44 | 8.07 | 8.27 | 9.62 | 10.15 | 9.75 | 9.23 | 6.92 | 6.34 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 311.92 | 310.72 | 294.66 | 271.19 | 268.49 | 295.92 | 266.85 | 289.62 | 295.16 | 263.68 | 276.41 | 260.64 | 246.64 | 245.03 | 249.24 | 234.83 | 235.04 | 211.32 | 213.22 | 204.12 | 181.12 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/E ratio4 | 27.33 | 27.00 | 25.61 | 23.42 | 22.51 | 25.23 | 23.23 | 26.39 | 31.34 | 31.22 | 34.24 | 31.53 | 25.65 | 24.15 | 25.57 | 25.43 | 33.98 | 33.31 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/E Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Airbnb Inc. | 30.61 | 33.58 | 50.83 | 17.28 | 20.59 | 20.59 | 14.19 | 39.65 | 40.05 | 44.53 | 36.29 | 59.77 | 96.17 | — | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 29.37 | 28.00 | 29.34 | 24.42 | 24.55 | 31.09 | 18.68 | 22.74 | 23.90 | 29.87 | 28.26 | 50.57 | 164.32 | 86.68 | 261.79 | 206.85 | 136.53 | 1,696.44 | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 42.75 | 50.81 | 51.16 | 49.35 | 65.94 | 58.48 | 44.26 | 47.35 | 54.42 | 49.37 | 50.59 | 55.45 | 61.35 | 67.03 | 69.94 | 87.74 | 102.77 | 122.18 | — | — | — | |||||||
| Starbucks Corp. | 32.43 | 29.62 | 21.14 | 24.11 | 24.81 | 29.09 | 30.66 | 36.91 | 37.77 | 34.26 | 23.05 | 19.34 | 25.86 | 30.95 | 52.55 | 137.44 | 185.40 | 118.26 | 65.20 | 27.12 | 27.92 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
EPS
= (Net incomeQ1 2025
+ Net incomeQ4 2024
+ Net incomeQ3 2024
+ Net incomeQ2 2024)
÷ No. shares of common stock outstanding
= (1,868,000,000 + 2,017,000,000 + 2,255,000,000 + 2,022,000,000)
÷ 715,032,727 = 11.41
3 Closing price as at the filing date of McDonald’s Corp. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/E ratio = Share price ÷ EPS
= 311.92 ÷ 11.41 = 27.33
5 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's share price, earnings per share (EPS), and price-to-earnings (P/E) ratio over the period analyzed.
- Share Price Trends
- From March 31, 2020, to March 31, 2025, the share price exhibits an overall upward trajectory. Initially, the price rose steadily from $181.12 to a peak above $295 in early 2023. The price experienced some volatility thereafter, with fluctuations between approximately $266 and $311. Notably, the share price reached its highest point of $311.92 by March 31, 2025, reflecting a significant appreciation over the five-year period.
- Earnings per Share (EPS) Trends
- EPS data begins in March 31, 2021, showing a general upward trend from $6.34 to a peak of about $11.93 by December 31, 2023. After this peak, EPS levels off and slightly declines, maintaining a value around $11.4 through March 31, 2025. This pattern suggests strong earnings growth initially, followed by a stabilization in profitability per share in the later periods.
- Price-to-Earnings (P/E) Ratio Trends
- The P/E ratio demonstrates variation throughout the period with a general range between roughly 22 and 34. Following the introduction of EPS data, the P/E ratio starts at around 33.31 and shows a downward trend reaching its lowest point near 22.51 in mid-2024. Afterward, the P/E ratio experiences modest increases but remains below the early figures, ending near 27.33 in March 2025. This decline and subsequent moderate rise suggest changes in market valuation relative to earnings, potentially reflecting investor sentiment or expectations about future growth.
- Interrelations and Insights
- The increase in share price aligns broadly with growth in EPS, which typically indicates improving company performance and profitability. However, the downward trend in the P/E ratio, despite rising earnings, may point to a market adjustment where the stock's price growth slowed relative to earnings expansion. The P/E fluctuations suggest investors may be moderating expectations or responding to broader market factors beyond current earnings.
Price to Operating Profit (P/OP)
McDonald’s Corp., historical P/OP calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 715,032,727 | 714,461,139 | 716,619,686 | 717,343,247 | 720,681,656 | 722,051,488 | 725,342,030 | 728,763,452 | 730,093,896 | 731,496,951 | 732,423,892 | 735,717,271 | 739,546,930 | 743,584,718 | 747,245,427 | 746,798,875 | 746,174,284 | 745,572,145 | 745,110,988 | 744,102,514 | 743,556,182 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Operating income (in millions) | 2,648) | 2,868) | 3,188) | 2,920) | 2,736) | 2,802) | 3,208) | 3,104) | 2,532) | 2,583) | 2,764) | 1,712) | 2,313) | 2,397) | 2,987) | 2,691) | 2,281) | 2,143) | 2,526) | 961) | 1,694) | |||||||
| Operating profit per share2 | 16.26 | 16.39 | 16.25 | 16.26 | 16.44 | 16.13 | 15.75 | 15.07 | 13.14 | 12.81 | 12.54 | 12.79 | 14.05 | 13.93 | 13.52 | 12.91 | 10.60 | 9.82 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 311.92 | 310.72 | 294.66 | 271.19 | 268.49 | 295.92 | 266.85 | 289.62 | 295.16 | 263.68 | 276.41 | 260.64 | 246.64 | 245.03 | 249.24 | 234.83 | 235.04 | 211.32 | 213.22 | 204.12 | 181.12 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/OP ratio4 | 19.19 | 18.95 | 18.13 | 16.68 | 16.33 | 18.35 | 16.94 | 19.22 | 22.47 | 20.58 | 22.04 | 20.38 | 17.56 | 17.59 | 18.44 | 18.19 | 22.17 | 21.51 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/OP Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Airbnb Inc. | 31.20 | 34.83 | 57.42 | 52.39 | 62.62 | 65.01 | 34.45 | 46.61 | 45.09 | 46.78 | 35.98 | 57.78 | 88.47 | 232.24 | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 20.41 | 21.80 | 22.96 | 19.32 | 19.08 | 22.85 | 15.07 | 16.75 | 17.88 | 17.91 | 14.98 | 19.34 | 28.66 | 40.46 | 66.89 | — | — | — | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 34.15 | 40.67 | 40.74 | 38.97 | 52.39 | 46.13 | 34.75 | 36.84 | 42.00 | 38.25 | 40.02 | 45.28 | 50.34 | 54.38 | 65.08 | 81.53 | 109.79 | 149.81 | — | — | — | |||||||
| Starbucks Corp. | 22.61 | 20.60 | 14.82 | 17.06 | 17.45 | 20.44 | 21.64 | 25.87 | 26.73 | 24.35 | 19.58 | 16.72 | 22.12 | 26.68 | 37.64 | 77.96 | 98.18 | 70.29 | 41.82 | 23.50 | 24.29 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
Operating profit per share
= (Operating incomeQ1 2025
+ Operating incomeQ4 2024
+ Operating incomeQ3 2024
+ Operating incomeQ2 2024)
÷ No. shares of common stock outstanding
= (2,648,000,000 + 2,868,000,000 + 3,188,000,000 + 2,920,000,000)
÷ 715,032,727 = 16.26
3 Closing price as at the filing date of McDonald’s Corp. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 311.92 ÷ 16.26 = 19.19
5 Click competitor name to see calculations.
- Share Price Trends
- The share price demonstrates an overall upward trend from March 2020 to March 2025. Initially, the price increased steadily from $181.12 in March 2020 to a peak of $295.16 in March 2023. After some volatility with a decline to $266.85 in September 2023, the share price recovered, reaching a new high of $311.92 in March 2025. This trend suggests strong market confidence and possible growth expectations over the observed period.
- Operating Profit per Share (OPPS) Trends
- Operating profit per share data is available starting from March 2021. The OPPS increased consistently from $9.82 to $16.39 by March 2025, reflecting a substantial improvement in profitability on a per-share basis. The gain from $9.82 to around $16 indicates enhanced operational efficiency or revenue growth. However, a slight decline in the final quarter to $16.26 suggests a possible plateau or minor short-term fluctuations in operating profit.
- Price to Operating Profit Ratio (P/OP) Patterns
- The P/OP ratio fluctuates within a range, starting at 21.51 in March 2021, then decreasing to a low of 16.33 in June 2024, before rising back to approximately 19.19 by March 2025. Lower P/OP ratios in mid-2024 reflect comparatively higher operating profits relative to share prices during that time, indicating improved operational performance relative to valuation. Rising ratios in subsequent periods could signal increased market valuation confidence or slower profit growth.
- Interrelation of Metrics
- While the share price increases steadily with some volatility, operating profit per share shows consistent growth, suggesting the company's fundamental earnings are strengthening. The P/OP ratio's variability implies market valuation adjustments relative to profitability, perhaps reflecting changing investor sentiment, external economic conditions, or company-specific developments.
- Summary of Insights
- The data reflects positive financial momentum characterized by rising share prices and operating profits per share over multiple years. Despite some fluctuations in valuation multiples, the general trend points toward growing operational success and increasing shareholder value. Investors might interpret the declining P/OP ratio periods as times when share price did not fully reflect improvements in operational profitability, indicating potential undervaluation during those quarters.
Price to Sales (P/S)
McDonald’s Corp., historical P/S calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 715,032,727 | 714,461,139 | 716,619,686 | 717,343,247 | 720,681,656 | 722,051,488 | 725,342,030 | 728,763,452 | 730,093,896 | 731,496,951 | 732,423,892 | 735,717,271 | 739,546,930 | 743,584,718 | 747,245,427 | 746,798,875 | 746,174,284 | 745,572,145 | 745,110,988 | 744,102,514 | 743,556,182 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Revenues (in millions) | 5,956) | 6,388) | 6,873) | 6,490) | 6,169) | 6,406) | 6,692) | 6,498) | 5,898) | 5,927) | 5,872) | 5,718) | 5,666) | 6,009) | 6,201) | 5,888) | 5,125) | 5,314) | 5,418) | 3,762) | 4,714) | |||||||
| Sales per share2 | 35.95 | 36.28 | 36.20 | 35.91 | 35.75 | 35.31 | 34.49 | 33.20 | 32.07 | 31.69 | 31.76 | 32.07 | 32.13 | 31.23 | 30.15 | 29.12 | 26.29 | 25.76 | 0.00 | 0.00 | 0.00 | |||||||
| Share price1, 3 | 311.92 | 310.72 | 294.66 | 271.19 | 268.49 | 295.92 | 266.85 | 289.62 | 295.16 | 263.68 | 276.41 | 260.64 | 246.64 | 245.03 | 249.24 | 234.83 | 235.04 | 211.32 | 213.22 | 204.12 | 181.12 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/S ratio4 | 8.68 | 8.56 | 8.14 | 7.55 | 7.51 | 8.38 | 7.74 | 8.72 | 9.20 | 8.32 | 8.70 | 8.13 | 7.68 | 7.85 | 8.27 | 8.07 | 8.94 | 8.20 | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/S Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Airbnb Inc. | 6.92 | 8.01 | 8.62 | 7.97 | 9.93 | 9.95 | 8.07 | 10.03 | 9.33 | 10.04 | 7.36 | 10.11 | 11.65 | 16.64 | — | — | — | — | — | — | — | |||||||
| Booking Holdings Inc. | 6.63 | 6.94 | 6.41 | 5.48 | 5.36 | 6.24 | 4.80 | 5.24 | 5.29 | 5.35 | 4.30 | 5.33 | 6.83 | 9.22 | 10.85 | 11.93 | 16.99 | 14.73 | — | — | — | |||||||
| Chipotle Mexican Grill Inc. | 5.81 | 6.89 | 6.91 | 6.53 | 8.38 | 7.28 | 5.43 | 5.68 | 6.25 | 5.14 | 4.86 | 5.15 | 5.36 | 5.80 | 6.91 | 7.52 | 6.61 | 7.26 | — | — | — | |||||||
| Starbucks Corp. | 3.16 | 3.08 | 2.36 | 2.74 | 2.90 | 3.34 | 3.31 | 3.86 | 3.81 | 3.49 | 3.00 | 2.72 | 3.74 | 4.47 | 5.48 | 5.74 | 5.32 | 4.67 | 3.63 | 3.45 | 3.86 | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
Sales per share
= (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
÷ No. shares of common stock outstanding
= (5,956,000,000 + 6,388,000,000 + 6,873,000,000 + 6,490,000,000)
÷ 715,032,727 = 35.95
3 Closing price as at the filing date of McDonald’s Corp. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 311.92 ÷ 35.95 = 8.68
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited an overall upward trend from March 2020 to March 2025. Starting at $181.12 in March 2020, it increased steadily with some fluctuations, reaching a peak of $311.92 by March 2025. Notable fluctuations include a dip in late 2022 and a rebound in early 2023, followed by moderate volatility towards the end of the period.
- Sales Per Share Trend
- Sales per share data begins from March 2021, showing a progressive increase over time. Starting at $25.76, sales per share rose consistently, peaking around $36.28 in December 2024 before a slight decline to $35.95 by March 2025. This trend indicates steady revenue growth on a per-share basis.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio demonstrated variability throughout the period. It started at 8.2 in March 2021, experienced a rise to a high of 9.2 in March 2023, then generally declined to a low of 7.51 in June 2024. The ratio rose again towards the end of the period, reaching 8.68 by March 2025. These fluctuations suggest changing market valuation dynamics relative to sales performance.
- Interrelation of Metrics
- The steady increase in sales per share corresponds with an overall rising share price, highlighting an alignment between business performance and market valuation. However, the P/S ratio’s fluctuations indicate periods where the stock price valuation outpaced or lagged behind sales growth, reflecting varying investor sentiment or market conditions during the analyzed time frame.
Price to Book Value (P/BV)
McDonald’s Corp., historical P/BV calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 715,032,727 | 714,461,139 | 716,619,686 | 717,343,247 | 720,681,656 | 722,051,488 | 725,342,030 | 728,763,452 | 730,093,896 | 731,496,951 | 732,423,892 | 735,717,271 | 739,546,930 | 743,584,718 | 747,245,427 | 746,798,875 | 746,174,284 | 745,572,145 | 745,110,988 | 744,102,514 | 743,556,182 | |||||||
| Selected Financial Data (US$) | ||||||||||||||||||||||||||||
| Shareholders’ equity (deficit) (in millions) | (3,454) | (3,797) | (5,177) | (4,824) | (4,833) | (4,707) | (4,855) | (4,999) | (5,776) | (6,003) | (6,566) | (6,370) | (5,991) | (4,601) | (5,675) | (5,808) | (7,236) | (7,825) | (8,472) | (9,463) | (9,293) | |||||||
| Book value per share (BVPS)2 | -4.83 | -5.31 | -7.22 | -6.72 | -6.71 | -6.52 | -6.69 | -6.86 | -7.91 | -8.21 | -8.97 | -8.66 | -8.10 | -6.19 | -7.59 | -7.78 | -9.70 | -10.50 | -11.37 | -12.72 | -12.50 | |||||||
| Share price1, 3 | 311.92 | 310.72 | 294.66 | 271.19 | 268.49 | 295.92 | 266.85 | 289.62 | 295.16 | 263.68 | 276.41 | 260.64 | 246.64 | 245.03 | 249.24 | 234.83 | 235.04 | 211.32 | 213.22 | 204.12 | 181.12 | |||||||
| Valuation Ratio | ||||||||||||||||||||||||||||
| P/BV ratio4 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| P/BV Ratio, Competitors5 | ||||||||||||||||||||||||||||
| Airbnb Inc. | 9.79 | 10.57 | 11.01 | 10.46 | 12.88 | 12.09 | 8.49 | 18.03 | 15.36 | 15.16 | 10.67 | 14.23 | 16.27 | 20.88 | 28.80 | 28.30 | 27.60 | — | — | — | — | |||||||
| Booking Holdings Inc. | — | — | — | — | — | — | — | — | 89.53 | 32.84 | 18.79 | 19.51 | 19.54 | 16.35 | 18.03 | 17.84 | 20.15 | 20.46 | 14.74 | 17.94 | 15.43 | |||||||
| Chipotle Mexican Grill Inc. | 19.12 | 21.32 | 21.01 | 18.75 | 25.43 | 23.47 | 17.95 | 19.07 | 22.64 | 18.74 | 17.58 | 19.46 | 19.67 | 19.05 | 21.50 | 23.66 | 19.92 | 21.52 | 19.42 | 18.92 | 14.72 | |||||||
| Starbucks Corp. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2025 Calculation
BVPS = Shareholders’ equity (deficit) ÷ No. shares of common stock outstanding
= -3,454,000,000 ÷ 715,032,727 = -4.83
3 Closing price as at the filing date of McDonald’s Corp. Quarterly or Annual Report.
4 Q1 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 311.92 ÷ -4.83 = —
5 Click competitor name to see calculations.
The share price exhibited an overall upward trend from March 2020 through March 2025, beginning at $181.12 and reaching $311.92, reflecting a significant appreciation in market value over the five-year period. The appreciation was characterized by periods of moderate increases and occasional volatility, with notable peaks around December 2023 and December 2024, where prices neared or exceeded $295, followed by slight pullbacks in the short term.
Book value per share (BVPS) displayed persistent negative values throughout the entire period, starting at -$12.5 in March 2020 and improving gradually to -$4.83 by March 2025. This improvement indicates a consistent reduction in negative equity per share, suggesting enhanced net asset value on a per-share basis. Although BVPS remained negative, the trajectory points to financial strengthening of the company’s net worth over time.
The price-to-book value ratio (P/BV) data was unavailable; hence, specific insights into valuation relative to book equity cannot be directly assessed. However, given the increasing share price coupled with improving yet negative BVPS, it can be inferred that market participants placed increasing value on future growth prospects or intangibles beyond the current book value.
Overall, the financial data reflects a period of recovery and growth in market capitalization, with underlying balance sheet improvements as negative equity per share lessened. This suggests enhanced investor confidence and operational or financial performance improvements, despite persistently negative book values, which may warrant further investigation into the company’s accounting policies or asset composition.
- Share Price Trend
- From $181.12 to $311.92 over five years, with steady appreciation and occasional volatility.
- Book Value Per Share (BVPS)
- Negative throughout, but improving from -$12.5 to -$4.83, indicating reduction in negative net assets.
- Price-to-Book Ratio (P/BV)
- Data unavailable; implied market valuation appears higher relative to negative BVPS.
- Insights
- Market values the company significantly above its negative book value, signaling expectations of growth or intangible asset strength. The ongoing improvement in BVPS suggests gradual strengthening of the balance sheet.