McDonalds Stock Alpha and Beta Analysis

Stocks . USA . 
Stock . McDonalds
MCD Stock  USD 286.04  0.52  0.18%   
This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as McDonalds. It also helps investors analyze the systematic and unsystematic risks associated with investing in McDonalds over a specified time horizon. Remember, high McDonalds' alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Check out McDonalds Backtesting, McDonalds Valuation, McDonalds Correlation, McDonalds Hype Analysis, McDonalds Volatility, McDonalds History and analyze McDonalds Performance. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide.
  
Please note that although McDonalds alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., NYSE Composite index.) So in this particular case, McDonalds did 0.14  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of McDonalds stock's relative risk over its benchmark. McDonalds has a beta of 0.51  . Let's try to break down what McDonalds's beta means in this case. As returns on the market increase, McDonalds returns are expected to increase less than the market. However, during the bear market, the loss on holding McDonalds will be expected to be smaller as well.
As of May 29, 2023, Book Value per Share is expected to decline to -8.36. In addition to that, Enterprise Value over EBIT is expected to decline to 24.47.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

McDonalds Quarterly Book Value per Share

(7.903)

McDonalds Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. McDonalds market risk premium is the additional return an investor will receive from holding McDonalds long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in McDonalds. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate McDonalds' performance over market.
α0.14   β0.51
90 days against NYA

McDonalds expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of McDonalds' Buy-and-hold return. Our buy-and-hold chart shows how McDonalds performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

McDonalds Market Price Analysis

Market price analysis indicators help investors to evaluate how McDonalds stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading McDonalds shares will generate the highest return on investment. By understating and applying McDonalds stock market price indicators, traders can identify McDonalds position entry and exit signals to maximize returns.
Price Series Subtraction
Price Series Summation
Price Ceiling Movement
Sine Of Price Series
Stochastic Fast
Plus Directional Indicator
Simple Moving Average
Triple Exponential Moving Average
Spinning Top
In Neck Pattern

McDonalds Return and Market Media

The median price of McDonalds for the period between Tue, Feb 28, 2023 and Mon, May 29, 2023 is 285.3 with a coefficient of variation of 4.35. The daily time series for the period is distributed with a sample standard deviation of 12.26, arithmetic mean of 281.79, and mean deviation of 10.92. The Stock received some media coverage during the period.
 Price Growth (%)  
       Timeline  
 
McDonalds dividend paid on 15th of March 202303/15/2023
1
Financial Statements03/29/2023
2
EPS Estimate03/31/2023
3
Exercise or conversion by Thompson Donald of 41800 shares of...04/10/2023
4
EPS Reported04/25/2023
5
NFL coaching diversity program participants relish exposure ...05/24/2023
6
McDONALDS ANNOUNCES QUARTERLY CASH DIVIDEND05/25/2023
7
Inside UKs largest strip club where women are empowered and ...05/26/2023

About McDonalds Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all financial instruments including McDonalds or other stocks. Alpha measures the amount that position in McDonalds has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2022 2023 (projected)
Long Term Debt to Equity3.063.31
Interest Coverage7.6210.54

McDonalds Upcoming Company Events

As portrayed in its financial statements, the presentation of McDonalds' financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, McDonalds' leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of McDonalds' public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of McDonalds. Please utilize our Beneish M Score to check the likelihood of McDonalds' management manipulating its earnings.
25th of July 2023
Upcoming Quarterly Report
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26th of October 2023
Next Financial Report
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30th of June 2023
Next Fiscal Quarter End
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30th of January 2024
Next Fiscal Year End
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31st of March 2023
Last Quarter Report
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31st of December 2022
Last Financial Announcement
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Check out McDonalds Backtesting, McDonalds Valuation, McDonalds Correlation, McDonalds Hype Analysis, McDonalds Volatility, McDonalds History and analyze McDonalds Performance. For information on how to trade McDonalds Stock refer to our How to Trade McDonalds Stock guide. Note that the McDonalds information on this page should be used as a complementary analysis to other McDonalds' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.

Complementary Tools for McDonalds Stock analysis

When running McDonalds' price analysis, check to measure McDonalds' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McDonalds is operating at the current time. Most of McDonalds' value examination focuses on studying past and present price action to predict the probability of McDonalds' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McDonalds' price. Additionally, you may evaluate how the addition of McDonalds to your portfolios can decrease your overall portfolio volatility.
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McDonalds technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
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A focus of McDonalds technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of McDonalds trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

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