McKesson Valuation

Is MCK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MCK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MCK ($607.51) is trading below our estimate of fair value ($1459.71)

Significantly Below Fair Value: MCK is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for MCK?

Other financial metrics that can be useful for relative valuation.

MCK key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA15.6x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does MCK's PE Ratio compare to its peers?

The above table shows the PE ratio for MCK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.3x
COR Cencora
32.2x15.2%US$48.1b
CAH Cardinal Health
22.4x7.7%US$28.0b
HSIC Henry Schein
27.6x26.7%US$8.7b
PDCO Patterson Companies
11.2x8.4%US$1.9b
MCK McKesson
31.1x15.0%US$71.2b

Price-To-Earnings vs Peers: MCK is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the peer average (23.3x).


Price to Earnings Ratio vs Industry

How does MCK's PE Ratio compare vs other companies in the US Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MCK is expensive based on its Price-To-Earnings Ratio (31.1x) compared to the US Healthcare industry average (25.5x).


Price to Earnings Ratio vs Fair Ratio

What is MCK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MCK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio31.1x
Fair PE Ratio38.4x

Price-To-Earnings vs Fair Ratio: MCK is good value based on its Price-To-Earnings Ratio (31.1x) compared to the estimated Fair Price-To-Earnings Ratio (38.4x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MCK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$607.51
US$616.69
+1.5%
9.6%US$688.00US$496.00n/a16
Nov ’25US$526.34
US$584.00
+11.0%
9.0%US$661.00US$490.00n/a16
Oct ’25US$498.48
US$605.28
+21.4%
8.4%US$670.00US$490.00n/a16
Sep ’25US$561.08
US$624.09
+11.2%
7.5%US$671.00US$490.00n/a16
Aug ’25US$629.09
US$620.45
-1.4%
10.5%US$700.00US$460.00n/a16
Jul ’25US$586.34
US$599.89
+2.3%
9.0%US$679.00US$460.00n/a16
Jun ’25US$569.59
US$589.51
+3.5%
8.7%US$679.00US$460.00n/a16
May ’25US$531.10
US$562.17
+5.9%
9.2%US$620.00US$410.00n/a17
Apr ’25US$536.49
US$547.41
+2.0%
8.6%US$620.00US$410.00n/a17
Mar ’25US$525.88
US$542.00
+3.1%
8.1%US$600.00US$410.00n/a17
Feb ’25US$501.85
US$510.77
+1.8%
8.3%US$564.00US$400.00n/a16
Jan ’25US$462.98
US$499.79
+7.9%
7.9%US$563.00US$400.00n/a14
Dec ’24US$464.65
US$491.77
+5.8%
7.2%US$530.00US$400.00n/a13
Nov ’24US$459.59
US$481.31
+4.7%
7.5%US$525.00US$395.00US$526.3413
Oct ’24US$434.85
US$474.23
+9.1%
6.4%US$510.00US$395.00US$498.4813
Sep ’24US$412.34
US$475.00
+15.2%
6.2%US$510.00US$395.00US$561.0814
Aug ’24US$405.02
US$450.56
+11.2%
7.2%US$500.00US$375.00US$629.0914
Jul ’24US$427.31
US$444.06
+3.9%
7.7%US$500.00US$375.00US$586.3415
Jun ’24US$389.23
US$435.20
+11.8%
8.3%US$491.00US$348.00US$569.5915
May ’24US$354.01
US$421.20
+19.0%
6.8%US$455.00US$348.00US$531.1015
Apr ’24US$356.05
US$421.57
+18.4%
6.4%US$450.00US$348.00US$536.4915
Mar ’24US$351.75
US$421.68
+19.9%
6.6%US$450.00US$348.00US$525.8814
Feb ’24US$370.98
US$422.11
+13.8%
6.8%US$460.00US$348.00US$501.8514
Jan ’24US$375.12
US$417.18
+11.2%
6.4%US$450.00US$348.00US$462.9814
Dec ’23US$379.72
US$416.77
+9.8%
7.2%US$450.00US$336.00US$464.6513
Nov ’23US$382.04
US$385.85
+1.0%
8.4%US$423.00US$298.00US$459.5913

Analyst Forecast: Target price is less than 20% higher than the current share price.


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