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What is the Cash Value of McDonald’s?

Analysts expect that McDonald’s common stock will trade in the high 90s or possibly above 100 over the next 12 months. Downside risk to buying the company’s stock is partially offset be the firm’s high (3.5%) dividend yield. As indicated below, analysts say McDonald’s is worth $96.06 billion. McDonald’s has the highest free cash flow yield in its peer group, at 4.5%, but the lowest price/earnings ratio (17.4).

Company                                                      Market Capitalization                        Price/Earnings
McDonald’s                                                               $96.06                                                17.4
Burger King                                                                  7.78                                                  32.1
Wendy’s                                                                          3.47                                                  34.4
Yum Brands                                                                32.99                                                  26.4
Chipolte                                                                        16.49                                                  53.8
Source: Based on: http://finance.yahoo.com/news/mcdonald-worth-cross-sectional-analysis-210006248.html

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