Mcdonalds Stock Alpha and Beta Analysis

MCD Stock  USD 253.58  0.12  0.05%   
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. Key technical indicators related to McDonalds' market risk premium analysis include:
Beta
0.68
Alpha
(0.21)
Risk
1.04
Sharpe Ratio
(0.13)
Expected Return
(0.13)
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 0.21  worse 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 0.68  . As returns on the market increase, McDonalds' returns are expected to increase less than the market. However, during the bear market, the loss of holding McDonalds is expected to be smaller as well. At present, McDonalds' Enterprise Value Multiple is projected to increase significantly based on the last few years of reporting. The current year's Enterprise Value is expected to grow to about 227 B, whereas Tangible Book Value Per Share is projected to grow to (11.20).

McDonalds Quarterly Cash And Equivalents

3.5 Billion

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.
  
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.

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.
α-0.21   β0.68

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.

McDonalds Return and Market Media

The median price of McDonalds for the period between Sun, Mar 17, 2024 and Sat, Jun 15, 2024 is 268.91 with a coefficient of variation of 3.38. The daily time series for the period is distributed with a sample standard deviation of 9.07, arithmetic mean of 268.57, and mean deviation of 7.12. The Stock received substential amount of media coverage during this period.
 Price Growth (%)  
       Timeline  
1
Party of the decade to benefit Sarasota musicians family after wifes cancer diagnosis
05/17/2024
2
Buffalo Wild Wings mocks Red Lobsters bankruptcy with new bottomless chicken deal
05/24/2024
3
Former 76ers F Drew Gordon dies in car accident at 33
05/31/2024
4
Lululemon Regains Some Momentum in Q1 Despite U.S.Missteps
06/05/2024
5
Is McDonalds Corporation A Good Consumer Dividend Aristocrat Stock To Buy
06/06/2024
6
Woman charged with fatal firebombing in Detroit told ex she wanted him to feel her pain, prosecutor says
06/07/2024
7
McDonalds Stock Sinks As Market Gains Heres Why
06/10/2024
8
McDonalds Ascends But Remains Behind Market Some Facts to Note
06/11/2024
9
Cramer says the market cant broaden out due to uncertainty away from tech
06/13/2024

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.
 2021 2022 2023 2024 (projected)
Dividend Yield0.01960.02150.0210.0149
Price To Sales Ratio8.618.378.478.89

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.
23rd of April 2024
Upcoming Quarterly Report
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25th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
3rd of February 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
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Additional Information and Resources on Investing in McDonalds Stock

When determining whether McDonalds is a strong investment it is important to analyze McDonalds' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact McDonalds' future performance. For an informed investment choice regarding McDonalds Stock, refer to the following important reports:
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.
You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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.
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...