Assessing Whether McDonald’s Corp (NYSE: MCD) Is Over- Or Undervalued

McDonald’s Corp (MCD) concluded trading on Wednesday at a closing price of $300.44, with 3.21 million shares of worth about $964.19 million changed hands on the day. Half year performance of the stock remained positive as price took a surge of 2.76% during that period and On Wednesday, January 24 the price saw a gain of about 0.13%. Currently the company’s common shares owned by public are about 744.80M shares, out of which, 725.03M shares are available for trading.

According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 87 times over the past 12 months. They bought 158,127 shares in 47 of the transactions. In 40 selling transactions, insiders dumped 127,463 shares.

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However, the stock later moved at a day high price of 302.04, or with a gain of 0.13%. Stock saw a price change of 3.19% in past 5 days and over the past one month there was a price change of 3.11%. Year-to-date (YTD), MCD shares are showing a performance of 1.33% which increased to 11.57% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $245.73 but also hit the highest price of $302.39 during that period. The average intraday trading volume for McDonald’s Corp shares is 2.98 million. The stock is currently trading 2.13% above its 20-day simple moving average (SMA20), while that difference is up 4.58% for SMA50 and it goes to 5.99% higher than SMA200.

McDonald’s Corp (NYSE: MCD) currently have 744.80M outstanding shares and institutions hold larger chunk of about 70.27% of that.

The stock has a current market capitalization of $217.92B and its 3Y-monthly beta is at 0.73. PE ratio of stock for trailing 12 months is 26.47, while it has posted earnings per share of $11.35 in the same period. Its PEG reads 2.73 and has Quick Ratio of 1.70. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for MCD, volatility over the week remained 1.23% while standing at 1.12% over the month.

Analysts are in expectations that McDonald’s Corp (MCD) stock would likely to be making an EPS of $2.82 in the current quarter, while forecast for next quarter EPS is $2.78 and it is $12.53 for next year. For the current quarter EPS, analysts have given the company a lowest target $2.75 which is $3.05 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $2.59 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 16.82% while it is estimated to increase by 6.29% in next year. EPS is likely to grow at an annualized rate of 9.68% for next 5-years, compared to annual growth of 5.52% made by the stock over the past 5-years.

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