McDonald's Corporation EV/EBITDA
Data as of June 01, 2026
EV/EBITDA
16.95
Enterprise Value
$252.10B
EBITDA (TTM)
$14.87B
Sector
Consumer Cyclical
How It's Calculated
16.95 = $252.10B ÷ $14.87B
What This Means
McDonald's Corporation's EV/EBITDA of 17.0 is in a moderate range for Consumer Cyclical.
About McDonald's Corporation
McDonald's Corporation (MCD) operates in the Consumer Cyclical sector, specifically in Restaurants. With a market capitalization of about $198.37B, it ranks as a large-cap stock โ a major established company.
Shares recently traded near $279.20, within a 52-week range of $271.98 to $341.75 (-18.3% from the high, +2.7% from the low). Beta of 0.44 indicates relatively lower volatility versus the market.
Trailing profit margin is about 31.6%, signaling a strong profit margin relative to many peers.
Understanding This Metric
EV/EBITDA is widely used when comparing companies with different debt loads because enterprise value includes net debt while EBITDA approximates operating cash earnings power. For McDonald's Corporation, the ratio should be read with growth, capex needs, and cycle position in Consumer Cyclical. Pair EV/EBITDA with free cash flow yield and net debt metrics before drawing conclusions โ especially when EBITDA is depressed or boosted by one-time items.
Using This Number in Practice
Near 16.95x EV/EBITDA, McDonald's Corporation (MCD) carries an elevated EV/EBITDA multiple that may embed growth expectations or scarcity within its peer set. Enterprise value of about $252.10B and EBITDA near $14.87B form the ratio โ adjust for one-time items before treating the headline multiple as comparable.
Credit and LBO workflows often sort names on EV/EBITDA before drilling into free cash flow and maintenance capex. Pair this view with the EV/EBITDA calculator and the MCD metrics hub for related valuation pages.
Sector Comparison
Among Consumer Cyclical names on our S&P 100 coverage, McDonald's Corporation's EV/EBITDA of 16.95 can be compared with peers such as AMZN (19.27), TSLA (144.99), BKNG (12.80). Sector context helps interpretation, but each company's growth profile and balance sheet differ โ use multiple metrics before drawing conclusions. View all Consumer Cyclical stocks.
Key Takeaways
- MCD is grouped in the Consumer Cyclical sector for peer comparisons.
- Recent beta of 0.44 suggests lower-than-market price sensitivity.
- Trailing profit margin of 31.6% provides context for how much earnings support the headline multiple.
Related Tools & Guides
Explore calculators and guides connected to this metric, or view all metrics for MCD.
Other MCD Metrics
Frequently Asked Questions
What is MCD's EV/EBITDA?
EV/EBITDA compares enterprise value to operating earnings before interest, taxes, depreciation, and amortization. McDonald's Corporation's ratio is about 16.95 โ common for comparing leveraged companies in Consumer Cyclical.
Is 16.95 high or low vs peers?
Among Consumer Cyclical peers (e.g. TSLA (144.99), F (27.35), SBUX (25.16)), MCD's 16.95 should be read with growth, capex, and debt levels.
When is EV/EBITDA misleading?
EBITDA ignores capex, working capital, and stock-based comp; negative or tiny EBITDA makes the ratio meaningless. Cross-check with free cash flow and net debt.
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