McDonald's Corporation P/B Ratio
Data as of June 01, 2026
P/B Ratio
-154.25
Stock Price
$279.20
Book Value/Share
$-1.81
Sector
Consumer Cyclical
How It's Calculated
-154.25 = $279.20 ÷ $-1.81
What This Means
McDonald's Corporation has a negative P/B ratio of -154.25, indicating negative book value — the company's liabilities exceed its assets. This warrants careful analysis of the balance sheet.
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 — 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
The price-to-book ratio compares market price to net asset value per share. For McDonald's Corporation, P/B is especially useful when earnings are volatile or temporarily depressed. In Consumer Cyclical, asset-heavy business models often anchor closer to book value, while asset-light models may trade far above book.
Sector Comparison
Among Consumer Cyclical names on our S&P 100 coverage, McDonald's Corporation's P/B ratio of -154.25 can be compared with peers such as AMZN (6.59), TSLA (19.90), BKNG (-14.97). Sector context helps interpretation, but each company's growth profile and balance sheet differ — 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 does MCD's price-to-book ratio indicate?
P/B compares share price to book value per share. McDonald's Corporation's P/B of -154.25 reflects how the market prices net assets — especially relevant for asset-heavy Consumer Cyclical business models.
Is -154.25 above or below book value?
A P/B below 1.0 (-154.25) can suggest the stock trades below book — sometimes a value signal, sometimes distress or accounting quirks.
How does P/B compare within Consumer Cyclical?
Peer P/B levels in Consumer Cyclical (e.g. TSLA (19.90), AMZN (6.59), NKE (4.86)) provide context; asset-light vs asset-heavy models differ materially.
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