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STOCK COMPARISON

McDonald’s vs Toyota Motor Corporation: Fair Value & Quality

Both stocks run through our valuation models. Here is how McDonald’s (MCD) and Toyota Motor Corporation (TM) compare, as of Oct 5, 2026.

As of Oct 5, 2026, Fair Value Calculator sees Toyota Motor Corporation as the more attractively valued of the two: McDonald’s trades at $232 versus a fair value of $163 (−29.8%), while Toyota Motor Corporation trades at $181 versus $211 (+16.5%).
McDonald’s
MCD · USD · Consumer Discretionary
−29.8%
upside to fair value
overvalued
Price$232
Fair Value$163
Quality69/100
Toyota Motor Corporation
TM · USD · Consumer Discretionary
+16.5%
upside to fair value
undervalued
Price$181
Fair Value$211
Quality47/100
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Head-to-head numbers

Green is the better side of a row, red the weaker one (for valuation multiples: lower = cheaper). Grey rows are for reference only and are not scored.

betterweakerfor reference, not scored

McDonald’sToyota Motor Corporation
Valuation
18.8×P/E (TTM)8.2×
16.7×Forward P/E (FY2027)n/a
25.5×Median P/E at FY-end (10 FY, ex one-offs where documented)n/a
5.97×P/S (TTM)0.72×
Negative equityP/B0.93×
13.7×EV/EBITDA9.0×
2.06×PEG1.54×
−29.8%Fair value upside+16.5%
3.2%Dividend yield3.3%
$7.35Dividend per share$95.00
Profitability
46.5%Operating margin7.9%
1.21×EBIT margin trend (5Y)0.91×
Negative equityReturn on equity12.4%
13.3%Return on assets2.3%
Growth
3.7%Revenue growth (YoY)10.4%
5.1%Avg. growth/yr (3Y)10.9%
7.0%Avg. growth/yr (5Y)13.2%
+11.9%Value creation/yr+17.4%
Balance & size
7.8×Interest coverage (EBIT/interest)40.9×
Negative equityDebt / equity0.64×
$165BMarket cap$237B
healthyGrowth qualityexpensive
McDonald’s, median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, 5 of the years ex one-offs: 25.5.
Forward P/E: price divided by the analyst consensus for the first fiscal year that has not started yet. The current year carries special items from quarters already reported.

Toyota Motor Corporation leads: 4 to 10 metric wins.

n/a = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

McDonald’sof which business quality 64 · market factors 39 Toyota Motor Corporationof which business quality 45 · market factors 49
ProfitabilityMargins and returns on capital today
64
33
Quality GrowthAre margins and returns improving?
46
29
CashflowEarnings quality: real cash, not paper profit
76
33
Fin. StrengthBalance sheet, leverage, solvency risk
53
49
InvestmentDisciplined investing over empire-building
57
43
Low VolatilityCalm price path (market factor)
95
87
MomentumPrice trend over the last 3–12 months (market factor)
20
37
52W MomentumDistance to the 52-week high (market factor)
6
24
Net IssuanceShare count: buybacks or dilution?
88
92

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyMcDonald’sPrice $232Toyota Motor CorporationPrice $181
DCF Models−40.7%below the price$138+5.3%close to the price$191
Earnings-Based−55.8%below the price$103−29.6%below the price$128
Dividend Discount−57.4%below the price$98.79−28.7%below the price$129
Multiples−2.6%close to the price$226+82.1%above the price$331
Asset-Basedn/a−20.8%below the price$144
Growth DCF−67.0%below the price$76.46−12.9%close to the price$158
Economic Profit−50.9%below the price$114−16.2%below the price$152
Growth Earnings−9.5%close to the price$210+123.8%above the price$406
Minimum−67.0%below the price$76.46−29.6%below the price$128
Maximum−2.6%close to the price$226+123.8%above the price$406
Median−50.9%below the price$114−14.6%close to the price$155
Geometric mean−44.6%below the price$128+2.8%close to the price$187

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

McDonald’s: 19 of 21 models see the stock below the current price.

Toyota Motor Corporation: 11 of 24 models see the stock below the current price.

Scenario ranges

From our cautious bear scenario to the optimistic bull scenario. The white tick is the current price (value above it), the green tick the fair value (value below it): if the price sits left of the fair value, there is room to rise.

McDonald’s
Price $232
Fair Value $163
Bear $91.85Bull $252
Toyota Motor Corporation
Price $181
Fair Value $211
Bear $100Bull $389

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

McDonald’s · Consumer Discretionary

Quality score69 · Top 25%
Fair value upside−29.8% · below median

Toyota Motor Corporation · Consumer Discretionary

Quality score47 · below median
Fair value upside+16.5% · above median

Bottom line

As of Oct 5, 2026, Fair Value Calculator sees Toyota Motor Corporation as the more attractively valued of the two: McDonald’s trades at $232 versus a fair value of $163 (−29.8%), while Toyota Motor Corporation trades at $181 versus $211 (+16.5%).

McDonald’s has the higher quality score (69/100).

Open Toyota Motor Corporation live analysis →

More comparisons

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.