Intrinsic value of McDonald's Corporation - MCD

Previous Close

$186.81

  Intrinsic Value

$14.53

stock screener

  Rating & Target

str. sell

-92%

Previous close

$186.81

 
Intrinsic value

$14.53

 
Up/down potential

-92%

 
Rating

str. sell

We calculate the intrinsic value of MCD stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 143.0

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  21,446
  21,939
  22,503
  23,136
  23,837
  24,607
  25,445
  26,352
  27,329
  28,378
  29,500
  30,697
  31,972
  33,327
  34,764
  36,288
  37,900
  39,606
  41,408
  43,310
  45,318
  47,435
  49,667
  52,018
  54,494
  57,102
  59,846
  62,734
  65,772
  68,968
Variable operating expenses, $m
  12,455
  12,736
  13,058
  13,418
  13,818
  14,257
  14,734
  15,251
  15,808
  16,406
  16,812
  17,495
  18,221
  18,993
  19,812
  20,681
  21,600
  22,572
  23,599
  24,683
  25,827
  27,034
  28,305
  29,645
  31,057
  32,543
  34,107
  35,753
  37,484
  39,305
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  12,455
  12,736
  13,058
  13,418
  13,818
  14,257
  14,734
  15,251
  15,808
  16,406
  16,812
  17,495
  18,221
  18,993
  19,812
  20,681
  21,600
  22,572
  23,599
  24,683
  25,827
  27,034
  28,305
  29,645
  31,057
  32,543
  34,107
  35,753
  37,484
  39,305
Operating income, $m
  8,990
  9,202
  9,445
  9,717
  10,019
  10,350
  10,710
  11,100
  11,521
  11,972
  12,688
  13,203
  13,751
  14,334
  14,952
  15,607
  16,301
  17,034
  17,809
  18,627
  19,491
  20,401
  21,361
  22,372
  23,438
  24,559
  25,739
  26,981
  28,288
  29,663
EBITDA, $m
  10,661
  10,906
  11,187
  11,501
  11,850
  12,233
  12,649
  13,100
  13,586
  14,108
  14,665
  15,261
  15,894
  16,568
  17,282
  18,040
  18,842
  19,689
  20,585
  21,531
  22,529
  23,582
  24,691
  25,860
  27,091
  28,387
  29,751
  31,187
  32,698
  34,286
Interest expense (income), $m
  874
  1,678
  1,194
  1,232
  1,274
  1,322
  1,376
  1,434
  1,497
  1,566
  1,640
  1,720
  1,805
  1,896
  1,992
  2,095
  2,204
  2,320
  2,442
  2,571
  2,708
  2,852
  3,004
  3,165
  3,334
  3,512
  3,700
  3,898
  4,106
  4,325
  4,555
Earnings before tax, $m
  7,312
  8,008
  8,213
  8,443
  8,696
  8,974
  9,276
  9,603
  9,954
  10,331
  10,968
  11,398
  11,855
  12,341
  12,857
  13,403
  13,981
  14,592
  15,238
  15,920
  16,639
  17,397
  18,196
  19,038
  19,925
  20,859
  21,842
  22,876
  23,963
  25,107
Tax expense, $m
  1,974
  2,162
  2,218
  2,280
  2,348
  2,423
  2,505
  2,593
  2,688
  2,790
  2,961
  3,077
  3,201
  3,332
  3,471
  3,619
  3,775
  3,940
  4,114
  4,298
  4,492
  4,697
  4,913
  5,140
  5,380
  5,632
  5,897
  6,176
  6,470
  6,779
Net income, $m
  5,338
  5,846
  5,996
  6,163
  6,348
  6,551
  6,772
  7,010
  7,267
  7,542
  8,006
  8,320
  8,654
  9,009
  9,385
  9,784
  10,206
  10,652
  11,124
  11,621
  12,146
  12,700
  13,283
  13,898
  14,545
  15,227
  15,944
  16,699
  17,493
  18,328

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  33,456
  34,226
  35,105
  36,093
  37,187
  38,388
  39,695
  41,110
  42,635
  44,271
  46,022
  47,889
  49,878
  51,992
  54,234
  56,611
  59,127
  61,788
  64,599
  67,567
  70,699
  74,002
  77,483
  81,151
  85,015
  89,082
  93,364
  97,869
  102,609
  107,594
Adjusted assets (=assets-cash), $m
  33,456
  34,226
  35,105
  36,093
  37,187
  38,388
  39,695
  41,110
  42,635
  44,271
  46,022
  47,889
  49,878
  51,992
  54,234
  56,611
  59,127
  61,788
  64,599
  67,567
  70,699
  74,002
  77,483
  81,151
  85,015
  89,082
  93,364
  97,869
  102,609
  107,594
Revenue / Adjusted assets
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
  0.641
Average production assets, $m
  24,298
  24,857
  25,495
  26,213
  27,007
  27,879
  28,829
  29,856
  30,964
  32,152
  33,423
  34,780
  36,224
  37,759
  39,388
  41,114
  42,941
  44,873
  46,915
  49,071
  51,345
  53,744
  56,272
  58,936
  61,742
  64,696
  67,806
  71,078
  74,520
  78,141
Working capital, $m
  214
  219
  225
  231
  238
  246
  254
  264
  273
  284
  295
  307
  320
  333
  348
  363
  379
  396
  414
  433
  453
  474
  497
  520
  545
  571
  598
  627
  658
  690
Total debt, $m
  22,116
  22,809
  23,601
  24,489
  25,474
  26,555
  27,731
  29,005
  30,377
  31,850
  33,425
  35,106
  36,896
  38,798
  40,817
  42,956
  45,220
  47,614
  50,145
  52,816
  55,635
  58,607
  61,740
  65,042
  68,519
  72,180
  76,033
  80,088
  84,354
  88,840
Total liabilities, $m
  30,111
  30,803
  31,595
  32,484
  33,468
  34,549
  35,726
  36,999
  38,371
  39,844
  41,419
  43,100
  44,890
  46,793
  48,811
  50,950
  53,214
  55,609
  58,139
  60,810
  63,629
  66,601
  69,735
  73,036
  76,513
  80,174
  84,027
  88,082
  92,348
  96,835
Total equity, $m
  3,346
  3,423
  3,511
  3,609
  3,719
  3,839
  3,970
  4,111
  4,263
  4,427
  4,602
  4,789
  4,988
  5,199
  5,423
  5,661
  5,913
  6,179
  6,460
  6,757
  7,070
  7,400
  7,748
  8,115
  8,501
  8,908
  9,336
  9,787
  10,261
  10,759
Total liabilities and equity, $m
  33,457
  34,226
  35,106
  36,093
  37,187
  38,388
  39,696
  41,110
  42,634
  44,271
  46,021
  47,889
  49,878
  51,992
  54,234
  56,611
  59,127
  61,788
  64,599
  67,567
  70,699
  74,001
  77,483
  81,151
  85,014
  89,082
  93,363
  97,869
  102,609
  107,594
Debt-to-equity ratio
  6.610
  6.660
  6.720
  6.790
  6.850
  6.920
  6.990
  7.060
  7.120
  7.190
  7.260
  7.330
  7.400
  7.460
  7.530
  7.590
  7.650
  7.710
  7.760
  7.820
  7.870
  7.920
  7.970
  8.010
  8.060
  8.100
  8.140
  8.180
  8.220
  8.260
Adjusted equity ratio
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  5,338
  5,846
  5,996
  6,163
  6,348
  6,551
  6,772
  7,010
  7,267
  7,542
  8,006
  8,320
  8,654
  9,009
  9,385
  9,784
  10,206
  10,652
  11,124
  11,621
  12,146
  12,700
  13,283
  13,898
  14,545
  15,227
  15,944
  16,699
  17,493
  18,328
Depreciation, amort., depletion, $m
  1,671
  1,704
  1,742
  1,784
  1,831
  1,883
  1,939
  2,000
  2,065
  2,136
  1,978
  2,058
  2,143
  2,234
  2,331
  2,433
  2,541
  2,655
  2,776
  2,904
  3,038
  3,180
  3,330
  3,487
  3,653
  3,828
  4,012
  4,206
  4,409
  4,624
Funds from operations, $m
  7,009
  7,550
  7,738
  7,947
  8,180
  8,434
  8,711
  9,010
  9,332
  9,678
  9,984
  10,378
  10,798
  11,243
  11,716
  12,217
  12,747
  13,308
  13,900
  14,525
  15,184
  15,880
  16,613
  17,385
  18,199
  19,055
  19,957
  20,905
  21,903
  22,952
Change in working capital, $m
  4
  5
  6
  6
  7
  8
  8
  9
  10
  10
  11
  12
  13
  14
  14
  15
  16
  17
  18
  19
  20
  21
  22
  24
  25
  26
  27
  29
  30
  32
Cash from operations, $m
  7,005
  7,545
  7,732
  7,941
  8,173
  8,426
  8,702
  9,001
  9,322
  9,667
  9,973
  10,366
  10,785
  11,230
  11,702
  12,202
  12,731
  13,291
  13,882
  14,506
  15,164
  15,859
  16,591
  17,362
  18,174
  19,029
  19,929
  20,876
  21,872
  22,920
Maintenance CAPEX, $m
  -1,410
  -1,438
  -1,471
  -1,509
  -1,551
  -1,598
  -1,650
  -1,706
  -1,767
  -1,832
  -1,902
  -1,978
  -2,058
  -2,143
  -2,234
  -2,331
  -2,433
  -2,541
  -2,655
  -2,776
  -2,904
  -3,038
  -3,180
  -3,330
  -3,487
  -3,653
  -3,828
  -4,012
  -4,206
  -4,409
New CAPEX, $m
  -474
  -559
  -639
  -717
  -795
  -872
  -949
  -1,028
  -1,107
  -1,188
  -1,271
  -1,357
  -1,444
  -1,535
  -1,629
  -1,726
  -1,827
  -1,932
  -2,042
  -2,156
  -2,275
  -2,399
  -2,528
  -2,664
  -2,806
  -2,954
  -3,109
  -3,272
  -3,442
  -3,621
Cash from investing activities, $m
  -1,884
  -1,997
  -2,110
  -2,226
  -2,346
  -2,470
  -2,599
  -2,734
  -2,874
  -3,020
  -3,173
  -3,335
  -3,502
  -3,678
  -3,863
  -4,057
  -4,260
  -4,473
  -4,697
  -4,932
  -5,179
  -5,437
  -5,708
  -5,994
  -6,293
  -6,607
  -6,937
  -7,284
  -7,648
  -8,030
Free cash flow, $m
  5,121
  5,548
  5,622
  5,715
  5,827
  5,956
  6,103
  6,267
  6,448
  6,647
  6,799
  7,032
  7,283
  7,551
  7,839
  8,145
  8,471
  8,817
  9,185
  9,574
  9,986
  10,422
  10,882
  11,368
  11,881
  12,422
  12,992
  13,592
  14,224
  14,890
Issuance/(repayment) of debt, $m
  -8,959
  693
  792
  889
  985
  1,081
  1,177
  1,274
  1,372
  1,473
  1,575
  1,681
  1,790
  1,902
  2,018
  2,139
  2,264
  2,394
  2,530
  2,671
  2,819
  2,973
  3,133
  3,301
  3,477
  3,661
  3,853
  4,055
  4,266
  4,487
Issuance/(repurchase) of shares, $m
  4,266
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -4,693
  693
  792
  889
  985
  1,081
  1,177
  1,274
  1,372
  1,473
  1,575
  1,681
  1,790
  1,902
  2,018
  2,139
  2,264
  2,394
  2,530
  2,671
  2,819
  2,973
  3,133
  3,301
  3,477
  3,661
  3,853
  4,055
  4,266
  4,487
Total cash flow (excl. dividends), $m
  428
  6,241
  6,414
  6,604
  6,812
  7,037
  7,280
  7,541
  7,821
  8,119
  8,375
  8,713
  9,072
  9,454
  9,857
  10,284
  10,735
  11,212
  11,715
  12,246
  12,805
  13,395
  14,016
  14,670
  15,358
  16,082
  16,845
  17,647
  18,490
  19,377
Retained Cash Flow (-), $m
  -9,604
  -77
  -88
  -99
  -109
  -120
  -131
  -142
  -152
  -164
  -175
  -187
  -199
  -211
  -224
  -238
  -252
  -266
  -281
  -297
  -313
  -330
  -348
  -367
  -386
  -407
  -428
  -451
  -474
  -499
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  -9,176
  6,164
  6,326
  6,505
  6,702
  6,917
  7,149
  7,399
  7,668
  7,956
  8,200
  8,526
  8,874
  9,242
  9,633
  10,046
  10,484
  10,946
  11,434
  11,949
  12,492
  13,064
  13,667
  14,303
  14,972
  15,676
  16,417
  17,196
  18,016
  18,878
Discount rate, %
  12.60
  13.23
  13.89
  14.59
  15.32
  16.08
  16.89
  17.73
  18.62
  19.55
  20.52
  21.55
  22.63
  23.76
  24.95
  26.19
  27.50
  28.88
  30.32
  31.84
  33.43
  35.10
  36.86
  38.70
  40.64
  42.67
  44.80
  47.04
  49.39
  51.86
PV of cash for distribution, $m
  -8,149
  4,808
  4,282
  3,773
  3,287
  2,827
  2,398
  2,005
  1,650
  1,334
  1,052
  820
  626
  467
  341
  243
  168
  114
  75
  47
  29
  17
  10
  6
  3
  2
  1
  0
  0
  0
Current shareholders' claim on cash, %
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

McDonald's Corporation (McDonald's) operates and franchises McDonald's restaurants. The Company's restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company's segments include U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate. The U.S. segment focuses on offering a platform for authentic ingredients that allows customers to customize their sandwiches. Its High Growth Markets segment includes its operations in markets, such as China, Italy, Korea, Poland, Russia, Spain, Switzerland, the Netherlands and related markets. The International Lead markets segment includes the Company's operations in various markets, such as Australia, Canada, France, Germany, the United Kingdom and related markets. The Foundational markets and Corporate segment is engaged in operating restaurants and increasing convenience to customers, including through drive-thru and delivery.

FINANCIAL RATIOS  of  McDonald's Corporation (MCD)

Valuation Ratios
P/E Ratio 32.7
Price to Sales 6.2
Price to Book -69.4
Price to Tangible Book
Price to Cash Flow 25.3
Price to Free Cash Flow 36.1
Growth Rates
Sales Growth Rate -3.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 0.4%
Cap. Spend. - 3 Yr. Gr. Rate -8.4%
Financial Strength
Quick Ratio 18
Current Ratio 0.4
LT Debt to Equity -1174.2%
Total Debt to Equity -1177.7%
Interest Coverage 9
Management Effectiveness
Return On Assets 15.3%
Ret/ On Assets - 3 Yr. Avg. 14.5%
Return On Total Capital 17.1%
Ret/ On T. Cap. - 3 Yr. Avg. 16.3%
Return On Equity 191.9%
Return On Equity - 3 Yr. Avg. 90.1%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 41.4%
Gross Margin - 3 Yr. Avg. 39.4%
EBITDA Margin 37.6%
EBITDA Margin - 3 Yr. Avg. 35.7%
Operating Margin 31.5%
Oper. Margin - 3 Yr. Avg. 29.5%
Pre-Tax Margin 27.9%
Pre-Tax Margin - 3 Yr. Avg. 26.8%
Net Profit Margin 19%
Net Profit Margin - 3 Yr. Avg. 18.1%
Effective Tax Rate 31.7%
Eff/ Tax Rate - 3 Yr. Avg. 32.7%
Payout Ratio 65.2%

MCD stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MCD stock intrinsic value calculation we used $21025 million for the last fiscal year's total revenue generated by McDonald's Corporation. The default revenue input number comes from 0001 income statement of McDonald's Corporation. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MCD stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 12.6%, whose default value for MCD is calculated based on our internal credit rating of McDonald's Corporation, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of McDonald's Corporation.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MCD stock the variable cost ratio is equal to 58.1%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MCD stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for McDonald's Corporation.

Corporate tax rate of 27% is the nominal tax rate for McDonald's Corporation. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MCD stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MCD are equal to 113.3%.

Life of production assets of 16.9 years is the average useful life of capital assets used in McDonald's Corporation operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MCD is equal to 1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-6258.4 million for McDonald's Corporation - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 765.338 million for McDonald's Corporation is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of McDonald's Corporation at the current share price and the inputted number of shares is $143.0 billion.

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