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Barchart
Barchart
Mark R. Hake, CFA

Is McDonald's a Buy? Its Strong FCF Margins Imply MCD Could be 23% Undervalued

MCD McDonald Barchart OTM Stock Analysis Yahoo Finance

McDonald's Corporation (MCD) generated strong free cash flow (FCF) and a high FCF margin in Q3, over 34% of sales. That implies MCD stock could be very undervalued here—at least 23% over the next year. Shorting OTM puts is one way to play it.

MCD is at $300.74 on Friday morning, up since its Nov. 5 earnings and cash flow statement release. This article will show why the stock could be worth at least $370 per share over the next year.

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