McDonald'sLTS:0R16 -0.30%82 Price-to-Free-Cash-Flow is 27.60 as of Jun. 24, 2026, which is 13% below its 10-year median of 31.83. GuruFocus rates LTS:0R16 with a GF Score™ of 82/100 and a GF Value™ of $325.86 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 272 Restaurants companies, McDonald's ranks worse than 75.37% on this metric.
As of today (2026-06-24), McDonald's's share price is $271.66.
McDonald's's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2026 was $9.84. Hence, McDonald's's Price-to-Free-Cash-Flow Ratio for today is 27.60.
The historical rank and industry rank for McDonald's's Price-to-Free-Cash-Flow or its related term are showing as below:
LTS:0R16'
s Price-to-Free-Cash-Flow Range Over the Past 10 Years
Min: 19.84 Med: 31.83 Max: 48.6
Current: 27.6
During the past 13 years, McDonald's's highest Price-to-Free-Cash-Flow Ratio was 48.60. The lowest was 19.84. And the median was 31.83.
LTS:0R16's Price-to-Free-Cash-Flow is ranked worse than 75.37% of 272
companies
in the Restaurants industry
Industry Median: 13.04
vs LTS:0R16: 27.60
During the past 12 months, the average Free Cash Flow per Share Growth Rate of McDonald's was 5.70% per year.
During the past 3 years, the average Free Cash Flow per Share Growth Rate was 10.70% per year.
During the past 5 years, the average Free Cash Flow per Share Growth Rate was 7.90% per year.
During the past 10 years, the average Free Cash Flow per Share Growth Rate was 8.70% per year.
During the past 13 years, McDonald's's highest 3-Year average Free Cash Flow per Share Growth Rate was 101.00% per year. The lowest was -22.60% per year. And the median was 9.95% per year.
Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.
In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.
Be Aware
In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management's decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.
McDonald's Price-to-Free-Cash-Flow Related Terms
McDonald's Price-to-Free-Cash-Flow Historical Data
* Premium members only.
The historical data trend for McDonald's's Price-to-Free-Cash-Flow can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LTS:0R16 vs SBUX, CMG, YUM: Price-to-Free-Cash-Flow Comparison
For the Restaurants subindustry, McDonald's's Price-to-Free-Cash-Flow, along with its competitors' market caps and Price-to-Free-Cash-Flow data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McDonald's Price-to-Free-Cash-Flow vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Price-to-Free-Cash-Flow distribution charts can be found below:
* The bar in red indicates where McDonald's's Price-to-Free-Cash-Flow falls into.
McDonald's's Share Price of today is $271.66. McDonald's's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $9.84.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
It can also be calculated from the numbers for the whole company:
What does a Price-to-Free-Cash-Flow of 27.60 mean?
McDonald's (LTS:0R16) has a Price-to-Free-Cash-Flow of 27.60 as of Jun. 24, 2026. Price-to-free-cash-flow ratio is the ratio of share price to a company's free cash flow per share. View historical data on McDonald's and its competitors. This is 13% below median its historical median of 31.83. Over the past decade, McDonald's' Price-to-Free-Cash-Flow has ranged from 19.84 to 48.60. According to the industry distribution chart, McDonald's ranks #205 out of 272 companies in the Restaurants industry, placing it in the top 75.4%.
Is McDonald's' Price-to-Free-Cash-Flow too high?
McDonald's' current Price-to-Free-Cash-Flow of 27.60 is 13% below median its 10-year median of 31.83. Over the past 10 years, this metric has ranged from a low of 19.84 to a high of 48.60. The Restaurants industry median Price-to-Free-Cash-Flow is 13.04. McDonald's' value of 27.60 is 111.7% above this industry median. Based on the distribution chart, McDonald's ranks #205 out of 272 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, McDonald's has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does McDonald's' Price-to-Free-Cash-Flow compare to SBUX and CMG?
According to the Restaurants industry distribution chart, McDonald's ranks #205 out of 272 companies for Price-to-Free-Cash-Flow. This places McDonald's in the lower half of its industry. The industry median Price-to-Free-Cash-Flow is 13.04. McDonald's' value of 27.60 is 111.7% above this benchmark. Historically, McDonald's' own Price-to-Free-Cash-Flow has ranged from 19.84 to 48.60 over the past decade. While the company's 10-year median is 31.83 vs. the industry median of 13.04, McDonald's has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Price-to-Free-Cash-Flow for a Restaurants company?
The median Price-to-Free-Cash-Flow among Restaurants companies is 13.04, based on 272 companies in the industry. Companies in the top quartile (top 25%) have a Price-to-Free-Cash-Flow significantly above this median, while those in the bottom quartile fall well below. However, Price-to-Free-Cash-Flow should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McDonald's's current Price-to-Free-Cash-Flow of 27.60 is 111.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Price-to-Free-Cash-Flow mean?
A high Price-to-Free-Cash-Flow can signal that a stock is expensive relative to its fundamentals. Price-to-free-cash-flow ratio is the ratio of share price to a company's free cash flow per share. View historical data on McDonald's and its competitors. For the Restaurants industry, the median Price-to-Free-Cash-Flow is 13.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McDonald's's current Price-to-Free-Cash-Flow is 27.60, which is 13% below median its own 10-year median of 31.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McDonald's stock overvalued right now?
Based on GuruFocus' analysis, McDonald's (LTS:0R16) is currently considered Modestly Undervalued. The stock's GF Value™ is $325.86, compared to a current price of $271.66 — trading 16.6% below its estimated fair value. The current Price-to-Free-Cash-Flow is 27.60, which is 13% below median its 10-year median of 31.83 and 111.7% above the Restaurants industry median of 13.04. McDonald's' overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Price-to-Free-Cash-Flow calculated?
Price-to-Free-Cash-Flow is calculated from a company's financial statements. For McDonald's (LTS:0R16), the current Price-to-Free-Cash-Flow is 27.60 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is McDonald's (LTS:0R16) Overvalued in 2026?
Based on GuruFocus' analysis, McDonald's stock appears to be undervalued.
The current stock price of $271.66 is trading 16.6% below its estimated GF Value™ of $325.86.
GuruFocus considers McDonald's to be Modestly Undervalued.
Key valuation signals for LTS:0R16:
Price-to-Free-Cash-Flow: 27.60 (13% below median its 10-year median of 31.83)
GF Value™: $325.86 vs. price of $271.66 (16.6% below fair value)
Industry Position: 111.7% above the Restaurants median (#205 of 272)
No single metric tells the full story. See the LTS:0R16 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McDonald's is the world's largest restaurant brand, with nearly $139 billion in systemwide sales across more than 45,000 restaurants and over 100 markets. The quick-service chain built its early reputation on speed, consistency, and affordable hamburgers, and today its global menu spans burgers, chicken, breakfast, and beverages that have helped popularize American fast-food cuisine worldwide. The firm derives the bulk of its revenue from franchise royalties and rent (about 62%), with the remainder stemming from company-operated restaurants across three segments: the United States (39% of systemwide sales), international operated markets (35%), and international developmental/licensed markets (26%).
82GF Score
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