MCDNEUTRAL

MCD P/E Ratio Analysis

21.9x

Updated 81h ago·SEC filings & market data

Key Takeaway

A P/E ratio of 21.9x means investors pay $21.90 for each $1 of the company's annual earnings per share.

Sector Performance

46th percentile

MCD

21.9x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

21.9x(Aug 2026)

→ Stable

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Deep Analysis

A P/E ratio of 21.9x means investors pay $21.90 for each $1 of the company's annual earnings per share.

Compared to sector peers, this sits below the sector median of 23.2x and falls at the 45th percentile, placing MCD slightly cheaper than the typical peer. For the trend, the year-over-year change is not available (N/A), while the quarter-over-quarter change is -1.4%, reflecting a decline from the prior value of 22.2x. The combination of a valuation just under the sector norm and a small quarterly dip suggests modest pressure on the multiple rather than a major repricing. This creates limited near-term downside from valuation alone, but also offers no clear bargain advantage. The metric supports the overall NEUTRAL verdict, as the level and trend are neither compellingly cheap nor dangerously expensive.

Frequently Asked Questions

What does the P/E Ratio tell investors about MCD?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are MCD's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), MTSI (118.9x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.