Money and Finance
Another year completed and another annual report to go through. Back in late January, McDonald's Corporation (MCD) announced 4Q 2013 and full year earnings so what better time than the present to input the new data and update my valuation analysis. McDonald's Corporation closed trading at $96.18 on Monday, March 24th giving a current yield of 3.37%.
DCF Valuation:
Analysts followed by Yahoo! Finance expect McDonald's Corp. to grow earnings 7.78% per year over the next five years and I've assumed they can grow at 5.84% (75% of 7.78%) for the next 3 years and at 4.50% per year thereafter. Running these numbers through a three-stage DCF analysis with a 10% discount rate and summing over 30 years yields a fair value price of $106.50. This means the shares are trading at a 9.7% discount to the discounted cash flow analysis.
Click here to read the rest of the analysis.
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Money and Finance
Should You Be Loving McDonald's Corporation?
Another year completed and another annual report to go through. Back in late January, McDonald's Corporation (MCD) announced 4Q 2013 and full year earnings so what better time than the present to input the new data and update my valuation analysis. McDonald's Corporation closed trading at $96.18 on Monday, March 24th giving a current yield of 3.37%.
DCF Valuation:
Analysts followed by Yahoo! Finance expect McDonald's Corp. to grow earnings 7.78% per year over the next five years and I've assumed they can grow at 5.84% (75% of 7.78%) for the next 3 years and at 4.50% per year thereafter. Running these numbers through a three-stage DCF analysis with a 10% discount rate and summing over 30 years yields a fair value price of $106.50. This means the shares are trading at a 9.7% discount to the discounted cash flow analysis.
Click here to read the rest of the analysis.
If you want to receive posts via email and sign up for my newsletter you can do so here or on the Subscribe page at the top of this blog.
- Can Johnson & Johnson Cure What Ails Your Portfolio?
Johnson & Johnson (JNJ) is well known around the dividend growth investing community with over 50 consecutive years of dividend increases. Chances are there's Johnson & Johnson products in your medicine cabinet right now and if you've...
- Colgate-palmolive Company: High Quality But Should You Buy?
As a dividend growth investor, consumer staples companies are great because people need to brush their teeth, clean their house and wash their body whether the economy is in boom or bust mode. It's the consistency in their operations and steady,...
- Does The Procter & Gamble Company Belong In Your Portfolio?
It's time to update my valuations on some of the dividend growth favorite consumer staples companies. Consumer staples companies are great for dividend growth investors because people need to wash their clothes and clean their house whether...
- Is Family Dollar Stores, Inc. A Bargain?
I'm always on the lookout for new to me dividend growth companies and recently received a request to do a full analysis on Family Dollar Stores, Inc. (FDO). What was really surprising is that Family Dollar Stores has a 38 year history of increasing...
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Earnings season is in full swing and with each new release comes some more data points on both past and future results. On February 12th management at Dr. Pepper Snapple Group, Inc. (DPS) announced 4Q 2013 and full year results. Last week...