Valuation Of Mcdonald Corporate

This article started from basic information of Mc Donald Corporate, including company information, operation strategy, competitors’ analysis, financial statements analysis, historical stock price analysis and future development strategy. Then based on current valuation models and McDonald Corporate’s real situation, this article selected FCFF(free cash flow to firm) model as the suitable valuation model for Mc Donald Corporate. Based on analysis of historical financial data and future development plan of McDonald Corporate, this article forecast future 5 years’ and agelong FCFF, plus the FCFF forecasting, this article also calculated WACC(weighted average capital cost) of McDonald Corporate with some financial models, with FCFF and WACC, discount FCFF can be calculated for total company current value, minus company’s debt, finally stock price came out with current value of company’s equality divided by common stock share. Comparing to current stock price, this article can explain a basic theory that stock price always fluctuates around its actual value, but may be impacted by some short-term economic facts.