MCD — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($341.06)
DCF	$128.40	-62.4%
Graham Number	—	—
Reverse DCF	—	implied g: 22.2%
DDM	$153.26	-55.1%
EV/EBITDA	$340.22	-0.2%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $6.30B

Near-term growth (yrs 1–5)(%)Rev: 9.7% / EPS: 8.2%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 6.47%

Computed WACC: 6.47%

Cost of equity (Re)7.20%(Rf 4.30% + β 0.53 × ERP 5.50%)

Cost of debt (Rd)4.04%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)81.61%

Debt weight (D/V)18.39%

Results

Intrinsic Value / share$267.67

Current Price$341.06

Upside / Downside-21.5%

Net Debt (used)$54.06B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	1.7%	5.7%	9.7%	13.7%	17.7%
7.0%	$135.94	$177.48	$225.54	$280.87	$344.30
8.0%	$96.62	$129.86	$168.27	$212.45	$263.03
9.0%	$69.46	$96.98	$128.74	$165.23	$206.98
10.0%	$49.58	$72.93	$99.85	$130.74	$166.04
11.0%	$34.41	$54.59	$77.83	$104.47	$134.88

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $11.94

Book Value / share($)Yahoo: $-2.52

Results

Graham Number requires positive EPS and positive Book Value per share. BVPS is zero or negative.

Graham Number—

Current Price$341.06

Margin of Safety—

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 6.47%

Terminal growth rate(%)

Computed WACC: 6.47%

Cost of equity (Re)7.20%(Rf 4.30% + β 0.53 × ERP 5.50%)

Cost of debt (Rd)4.04%(interest expense ÷ avg debt (SEC))

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)81.61%

Debt weight (D/V)18.39%

Results

Current Price$341.06

Implied Near-term FCF Growth12.9%

Historical Revenue Growth9.7%

Historical Earnings Growth8.2%

Base FCF (TTM)$6.30B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $7.44

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$153.26

Current Price$341.06

Upside / Downside-55.1%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $14.59B

Target EV/EBITDA multipleCurrent: 20.3×

Net Debt($B)Default: $54.06B

Results

Implied Equity Value / share$340.22

Current Price$341.06

Upside / Downside-0.2%

Implied EV$296.35B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$26.06B	$40.06B	$54.06B	$68.06B	$82.06B
16.3x	$297.57	$277.91	$258.25	$238.59	$218.93
18.3x	$338.55	$318.89	$299.24	$279.58	$259.92
20.3x	$379.54	$359.88	$340.22	$320.56	$300.90
22.3x	$420.52	$400.87	$381.21	$361.55	$341.89
24.3x	$461.51	$441.85	$422.19	$402.53	$382.87

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