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DCF valuation

What is McDonalds Corp worth?

With the base-case assumptions below, a discounted cash flow model on McDonalds Corp's reported free cash flow gives $153,490,952.64 per share. The share price was $236.50 on September 25, 2026, 100% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$7.19B
Average free cash flow, last 5 years
$6.74B
Cash
$822M
balance sheet of June 30, 2026
Debt
$39.86B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
716
Revenue growth per year, last 5 years
7.0%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear2.0%2.0%2.0%10.0%$73,395,449.47+31,033,917%
Base7.0%5.0%2.5%9.0%$153,490,952.64+64,900,937%
Bull12.0%7.5%3.0%8.0%$302,993,007.05+128,115,336%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$211,514,499.71$229,271,938.69$250,975,475.21$278,104,895.86$312,985,579.56
8.0%$168,181,791.40$179,697,445.66$193,306,855.24$209,638,146.74$229,598,614.12
9.0%$136,532,590.00$144,406,115.51$153,490,952.64$164,089,929.28$176,615,992.60
10.0%$112,434,651.25$118,033,825.00$124,379,555.25$131,631,818.40$139,999,814.34
11.0%$93,496,310.74$97,601,130.57$102,188,870.38$107,350,077.67$113,199,445.94

Where the presets come from

Base: years 1 to 5 grow at McDonalds Corp's revenue growth rate over the last 5 fiscal years (7.0% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

McDonalds Corp company page