Buy McDonald's Based on Undervaluation for 2026

4 days ago

Parkev Tatevosian, CFA

"But when I calculated the value of the business using my proprietary discounted cash flow model, I came to a conclusion that the business should be worth $417 per share and at $311 per share, the stock looks undervalued. So to answer the question I posed in the headline, do I think McDonald's stock is a buying opportunity for dividend stock investors? I say yes."

The speaker recommends buying McDonald's for dividend investors, highlighting a DCF-derived target of $417 per share compared to a current price of $311. He emphasizes the role of technology in boosting operational efficiency and reducing costs, which supports the stock's undervaluation and favorable long-term potential for 2026.

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