Question 1

What is McDonald's's P/FCF ratio?

Accepted Answer

McDonald's (MCD) P/FCF ratio is 26.7× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for McDonald's?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For McDonald's specifically, the relevant sector benchmark is the current sector median of 17.1×.

Question 5

Is McDonald's's P/FCF ratio high or low?

Accepted Answer

McDonald's's P/FCF ratio of 26.7× is below its own 5-year average of 29.9× and above the sector median of 17.1×. That places the current reading at the 16th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is McDonald's's historical P/FCF ratio range?

Accepted Answer

In the available daily series, McDonald's (MCD) P/FCF ratio has ranged from a low of 15.0× in 2004 to a high of 62.6× in 2002. The 5-year average is 29.9× and the 5-year median is 29.9×.

Question 7

What was McDonald's's P/FCF ratio in 2025?

Accepted Answer

McDonald's (MCD) P/FCF ratio at the end of 2025 was 30.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does McDonald's's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$218B	$7.19B	30.4×	-0.7×	Dec 31, 2025
2024	$207B	$6.67B	31.1×	+1.5×	Dec 31, 2024
2023	$215B	$7.25B	29.6×	-5.6×	Dec 31, 2023
2022	$193B	$5.49B	35.2×	+7.1×	Dec 31, 2022
2021	$200B	$7.1B	28.1×	-6.5×	Dec 31, 2021
2020	$160B	$4.62B	34.6×	+8.8×	Dec 31, 2020
2019	$147B	$5.73B	25.7×	-6.5×	Dec 31, 2019
2018	$136B	$4.23B	32.2×	-4.7×	Dec 31, 2018
2017	$137B	$3.7B	37.0×	+13.3×	Dec 31, 2017
2016	$99.6B	$4.21B	23.7×	+1.0×	Dec 31, 2016
2015	$107B	$4.73B	22.7×	+0.9×	Dec 31, 2015
2014	$90.2B	$4.15B	21.8×	-0.6×	Dec 31, 2014
2013	$96.1B	$4.3B	22.4×	-0.2×	Dec 31, 2013
2012	$88.4B	$3.92B	22.6×	-0.5×	Dec 31, 2012
2011	$102B	$4.42B	23.1×	+4.1×	Dec 31, 2011
2010	$79.6B	$4.21B	18.9×	+1.3×	Dec 31, 2010
2009	$67.2B	$3.8B	17.7×	-0.5×	Dec 31, 2009
2008	$68.6B	$3.78B	18.1×	-4.9×	Dec 31, 2008
2007	$67.5B	$2.93B	23.0×	+2.6×	Dec 31, 2007
2006	$53.2B	$2.6B	20.5×	+5.0×	Dec 31, 2006
2005	$42.3B	$2.73B	15.5×	-1.9×	Dec 31, 2005
2004	$40.5B	$2.33B	17.4×	-2.4×	Dec 31, 2004
2003	$31.3B	$1.59B	19.8×	-40.6×	Dec 31, 2003
2002	$20.4B	$338M	60.4×	—	Dec 31, 2002


DraftKings (DKNG)	15.5×
Avery Dennison (AVY)	15.2×
Wynn Resorts (WYNN)	15.1×
NVR (NVR)	14.9×
Booking Holdings (BKNG)	14.7×
D.R. Horton (DHI)	14.2×
V.F. (VFC)	12.6×
Deckers Outdoor (DECK)	12.0×
Carnival Corporation (CCL)	11.9×
Lululemon Athletica (LULU)	11.6×
Toll Brothers (TOL)	11.1×
Hasbro (HAS)	9.8×
PDD Holdings (PDD)	9.5×
LKQ (LKQ)	9.3×
KB Home (KBH)	8.8×
Mohawk Industries (MHK)	8.4×
MercadoLibre (MELI)	8.2×
Best Buy Co. (BBY)	7.9×
Etsy (ETSY)	7.2×
Leggett & Platt (LEG)	6.6×
Weyco Group (WEYS)	6.2×
Expedia Group (EXPE)	6.0×
MGM Resorts (MGM)	5.5×
Ford Motor (F)	4.8×
General Motors (GM)	4.3×

P/FCF Ratio for McDonald's (MCD) 2002-2026

P/FCF Ratio daily chart for McDonald's (MCD)

Historical P/FCF Ratio for McDonald's (MCD) from 2002 to 2025

About P/FCF Ratio at McDonald's (MCD)

McDonald's P/FCF Ratio by Year

McDonald's P/FCF Ratio 2025: 30.4×

McDonald's P/FCF Ratio 2024: 31.1×

McDonald's P/FCF Ratio 2023: 29.6×

McDonald's P/FCF Ratio 2022: 35.2×

McDonald's P/FCF Ratio 2021: 28.1×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

McDonald's (MCD) Key Financials