McDonald Stock valuation
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Aravind.R.Patlolla, Othmane Lazreq Stock and Bond Valuation Professor Joel Sternberg April 26, 2007 Stock Valuation Project on Mc Donald's Corp. Company Overview: Mc Donald's is a global foodservice retailer with more than 30,000 restaurants serving nearly 50 million people in more than 119 countries each day. The company was founded by Ray Kroc and in 1965 McDonald's went public a hundred shares of stock cost $2,250 dollars that day would have multiplied into 74,360 shares today, worth over $1.8 million on December 31, 2003. The stock is currently trading for $49.23.1 McDonald's Corp. Ratio Analysis for the year ended December 31, 2006. Current Ratio 1.2 Quick Ratio 1.16 Earnings/Share 2.95 Price /Earnings 16.60 PEG Ratio 2.16 Price/Cash Flow 16.68 Price/Free Cash Flow 15.10 Price/Book 3.83 EV/EBITDA 10.714 1. Current Ratio: Is an indication of a companies' ability to meet short term debt obligations. It is equal to current assets divided by current liabilities. The higher the ratio the more liquid the company is. If the current liabilities exceed current assets, then the company might have problems...


