MCD PEG Ratio Analysis
Updated 125h ago·SEC filings & market data
Key Takeaway
The PEG ratio, which compares a stock’s price-to-earnings multiple to its earnings growth rate, stands at 3.58x for MCD.
Sector Performance
87th percentileMCD
3.58x
Sector Median
0.97x
Sector Avg
2.92x
Prior Period
4.04x(Jun 2026)
Deep Analysis
The PEG ratio, which compares a stock’s price-to-earnings multiple to its earnings growth rate, stands at 3.58x for MCD.
That means investors are paying $3.58 for every $1 of expected earnings growth—a high level relative to the sector median of 0.92x, ranking MCD in the 86th percentile among its peers. Year-over-year change is not available, but from the prior quarter the ratio dropped 11.4%, moving from 4.04x to 3.58x. This combination of a still-elevated PEG ratio and a declining quarterly trend suggests the stock has been expensive relative to growth, yet the compression may signal improving value or slower growth expectations. The high absolute level points to potential overvaluation risk, while the downward movement could present an opportunity if the trend continues toward the sector median. Overall, this metric supports the NEUTRAL verdict: the elevated PEG discourages a bullish stance, but the recent decline keeps the outlook balanced rather than outright negative.
Frequently Asked Questions
What does the PEG Ratio tell investors about MCD?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Who are MCD's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: EBAY (8.15x), VTR (8.27x), DOV (8.39x), MTD (8.61x), KR (9.25x).
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
Master MCD's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full MCD research report →MCD
3.58x
Sector Median
0.97x
Sector Avg
2.92x
How MCD's PEG Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.