McDonald’s CAPE ratio

The CAPE ratio for McDonald’s compares its current stock price to the average inflation-adjusted earnings over the past 10 years. McDonald’s, as a stable, established company in the fast-food industry, typically has a lower CAPE ratio compared to high-growth tech stocks. A high CAPE ratio may suggest McDonald’s is overvalued, leading to lower future returns, while a low CAPE could indicate potential undervaluation. Investors use McDonald’s CAPE ratio to assess whether the stock price accurately reflects its long-term earnings potential, considering its consistent profitability and global brand presence.