valuation i p e multiple based on the average for mcdonald s industry company is trading at a discount same can be said of its historical given mcd ten year high and low one see that upside to investing in this equity much greater than downside but investor must cautious because there significant should trade historically if we look around 50 share however current price above 45 where stock relative premiums paid earnings ii damodaran gordon growth model10 after running model template offered by professor using 6 78 rate forecasted increase eps equal 10 geometric dividends fair value about 54 25 was calculated although dividend has been growing varying levels past 5 years feel it stabilize again soon 14
