MCD PE Ratio 2026
McDonald’s Corporation Price to Earnings Analysis
Current P/E Ratio
23.42
Stock Price
$280.63
Valuation
Fair Value
PE Ratio Breakdown
Trailing P/E (TTM)
23.42
Based on last 12 months earnings
Consumer Cyclical Industry Avg
20.00
MCD is 17% above industry
What Does MCD P/E Ratio Mean?
Current Valuation
At a P/E ratio of 23.42, investors are paying $23.42 for every $1 of MCD's annual earnings. This moderate P/E is typical for established companies with steady earnings.
Industry Comparison
Compared to the Consumer Cyclical industry average P/E of 20, MCD is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
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Frequently Asked Questions
What is MCD PE ratio?
MCD (McDonald’s Corporation) has a price-to-earnings (P/E) ratio of 23.42. This means investors are paying $23.42 for every $1 of MCD's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare MCD's P/E of 23.42 to its industry average and historical range.
Is MCD overvalued based on PE ratio?
MCD's P/E ratio of 23.42 is above the Consumer Cyclical industry average of approximately 20. The stock appears fairly valued relative to industry peers.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). MCD's trailing P/E is 23.42. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For MCD, with a current price of $280.63, the P/E ratio can be calculated once EPS is available. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG ratio adjusts P/E for growth. PEG = P/E / Earnings Growth Rate. A PEG below 1.0 typically indicates good value. Calculate MCD's PEG ratio when earnings growth data is available.