Mcd equity research - story of the golden arcs franchise

• Autor(a) principal: Oliveira, Pedro De Mello
• Data de Publicação: 2021
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10362/127261
• topic: Mcdonalds; Valuation; Enterprise value; Price target; Domínio/Área Científica::Ciências Sociais::Economia e Gestão

Included in the S&P500, the McDonalds Corporation stock (MCD)has been a major contributor, thus it is essential to keep studying the company and its valuation. During the past few years, especially because of COVID-19pandemic, a lot has changed, influencing McDonalds. The equity research analyses the company’s enterprise value to determine its stock price forecast for December 31st, 2021. A Discounted Cash Flow Valuation and Multiples valuation was used to determine its future value, and subsequently have a stock suggestion for investors. By applying such methods and analyzing value drivers and historical data, it is believed that the price for a McDonalds share at the end of 2021, will be $240.74. On January 4th, 2020, MCD’s price per share is seen to be at $214.58, making the firm undervalued. The analysis predicts a potential upside of 12.19%, making it a BUY recommendation for investors wanting a greater than 10% return per year.