Investment Analysis of McDonald's using DDM, DCF and Comparable Method

Financial management
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Good company to invest in –
Once the company has adequate funds
the next thing is deciding about the
company in which to invest the funds.
To analyse any company before
investing, its background, financial
dealings, management type and various
other things are required to be
considered.

Company background –
McDonald’s is the fast food company
limited by service restaurant that has
more than 35000 restaurants over
more than 100 nations. It serves more
than 75 million customers each day
with having more than 4 million
employees.

Dividend discount model (DDM) –
DDM is used for valuing the stocks
that uses the theory that the worth
of a stock is sum of all the future
dividends. Using the cost of capital,
stock price and next year’s value of
dividend the intrinsic value of the
stock can be determined.

Major advantage of DDM model is
that is is most widely used method
for computing the share prices and
therefore is easiest method to
understand. It is used for valuing
the stock of the company without
considering the market conditions.
Hence, it is easier to compare the
entities of different sizes and from
different industries.