McDonald’s Inc. reports total book value of $660 million and common shares outstanding of 853.36 million. The average PB ratio for restaurant companies is 10.9. Using the industry average PB ratio, estimate the intrinsic value of McDonald’s equity
McDonald’s Inc. reports total book value of $660 million and common shares outstanding of 853.36 million. The average PB ratio for restaurant companies is 10.9. Using the industry average PB ratio, estimate the intrinsic value of McDonald’s equity
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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McDonald’s Inc. reports total book value of $660 million and common shares outstanding of 853.36 million. The average PB ratio for restaurant companies is 10.9. Using the industry average PB ratio, estimate the intrinsic value of McDonald’s equity.
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