Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
McDonald’s Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
| Item | Description | The company |
|---|---|---|
| EBITDA | To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. | McDonald’s Corp. EBITDA increased from 2022 to 2023 and from 2023 to 2024. |
Enterprise Value to EBITDA Ratio, Current
McDonald’s Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 263,161) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 13,948) |
| Valuation Ratio | |
| EV/EBITDA | 18.87 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Airbnb Inc. | 21.20 |
| Booking Holdings Inc. | 17.08 |
| Chipotle Mexican Grill Inc. | 28.33 |
| Starbucks Corp. | 17.31 |
| EV/EBITDA, Sector | |
| Consumer Services | 18.94 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 17.81 |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
McDonald’s Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | 261,117) | 250,011) | 227,523) | 213,114) | 191,546) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 13,948) | 13,861) | 10,903) | 12,182) | 9,110) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 18.72 | 18.04 | 20.87 | 17.49 | 21.03 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Airbnb Inc. | 23.48 | 40.65 | 36.61 | 338.63 | — | |
| Booking Holdings Inc. | 17.99 | 19.60 | 19.20 | 45.39 | 73.17 | |
| Chipotle Mexican Grill Inc. | 32.63 | 36.37 | 29.62 | 40.00 | 79.87 | |
| Starbucks Corp. | 17.33 | 17.75 | 19.88 | 18.77 | 38.99 | |
| EV/EBITDA, Sector | ||||||
| Consumer Services | 19.62 | 20.97 | 22.11 | 25.46 | 59.23 | |
| EV/EBITDA, Industry | ||||||
| Consumer Discretionary | 20.66 | 18.14 | 19.78 | 21.32 | 29.33 | |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 261,117 ÷ 13,948 = 18.72
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/EBITDA | Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. | McDonald’s Corp. EV/EBITDA ratio decreased from 2022 to 2023 but then slightly increased from 2023 to 2024. |