MCDNEUTRAL

MCD PEG Ratio Analysis

3.58x

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 percentile

MCD

3.58x

Sector Median

0.97x

Sector Avg

2.92x

Prior Period

4.04x(Jun 2026)

↑ Improving
📊

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).

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.

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MCD

3.58x

Sector Median

0.97x

Sector Avg

2.92x

How MCD's PEG Ratio compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.