McKesson Corporation

BIT:1MCK Stock Report

Market Cap: €81.3b

McKesson Valuation

Is 1MCK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • 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 1MCK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

€864.59
Fair Value
25.2% undervalued intrinsic discount
14
Number of Analysts

Below Fair Value: 1MCK (€649) is trading below our estimate of fair value (€865)

Significantly Below Fair Value: 1MCK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1MCK?

Key metric: As 1MCK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1MCK. This is calculated by dividing 1MCK's market cap by their current earnings.
What is 1MCK's PE Ratio?
PE Ratio29.8x
EarningsUS$3.16b
Market CapUS$94.00b

Price to Earnings Ratio vs Peers

How does 1MCK's PE Ratio compare to its peers?

The above table shows the PE ratio for 1MCK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average37.1x
AMP Amplifon
26.7x17.47%€3.4b
COR Cencora
32.1x13.37%US$60.2b
CAH Cardinal Health
23.9x10.64%US$37.5b
SIG Sigma Healthcare
65.5x15.83%AU$34.7b
1MCK McKesson
29.8x13.72%€94.0b

Price-To-Earnings vs Peers: 1MCK is expensive based on its Price-To-Earnings Ratio (29.8x) compared to the peer average (-270.1x).

Price to Earnings Ratio vs Industry

How does 1MCK's PE Ratio compare vs other companies in the European Healthcare Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1MCK 29.8xIndustry Avg. 19.4xNo. of Companies9PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1MCK is expensive based on its Price-To-Earnings Ratio (29.8x) compared to the European Healthcare industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is 1MCK'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.

1MCK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio29.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1MCK's Price-To-Earnings Fair Ratio for valuation analysis.

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 1MCK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€649.00
€713.51
+9.94%
5.82%€743.13€584.87n/a14
Oct ’26€658.00
€706.63
+7.39%
5.82%€735.96€579.22n/a14
Sep ’26€581.60
€676.59
+16.33%
5.92%€712.14€549.12n/a14
Aug ’26€604.20
€673.42
+11.46%
6.95%€711.61€526.80n/a14
Jul ’26€619.80
€645.96
+4.22%
8.07%€695.52€517.40n/a15
Jun ’26€626.00
€663.32
+5.96%
8.54%€726.36€540.34n/a15
May ’26€626.00
€623.64
-0.38%
9.88%€707.43€483.34n/a15
Apr ’26n/a
€625.44
0%
7.96%€680.76€511.50n/a15
Mar ’26n/a
€633.81
0%
8.27%€698.83€511.39n/a15
Feb ’26n/a
€631.61
0%
8.41%€693.91€514.37n/a15
Jan ’26n/a
€623.54
0%
8.59%€681.75€505.36n/a15
Dec ’25n/a
€604.37
0%
10.69%€675.68€500.85n/a15
Nov ’25n/a
€534.07
0%
8.96%€604.48€448.11n/a16
Oct ’25n/a
€543.84
0%
8.36%€602.00€440.27€658.0016
Sep ’25n/a
€559.12
0%
7.48%€601.15€438.99€581.6016
Aug ’25n/a
€569.95
0%
10.52%€643.02€422.56€604.2016
Jul ’25n/a
€559.76
0%
8.95%€633.57€429.23€619.8016
Jun ’25n/a
€545.83
0%
8.66%€628.69€425.91€626.0016
May ’25n/a
€526.64
0%
9.15%€580.82€384.09€626.0017
Apr ’25n/a
€500.00
0%
8.59%€566.31€374.49n/a17
Mar ’25n/a
€499.51
0%
8.07%€552.96€377.86n/a17
Feb ’25n/a
€471.60
0%
8.30%€520.74€369.32n/a16
Jan ’25n/a
€458.45
0%
7.85%€516.44€366.92n/a14
Dec ’24n/a
€449.38
0%
7.23%€484.31€365.52n/a13
Nov ’24n/a
€454.79
0%
7.45%€496.07€373.24n/a13
Oct ’24n/a
€443.83
0%
6.42%€477.31€369.68n/a13
€709.98
Fair Value
8.9% undervalued intrinsic discount
14
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/10/09 04:29
End of Day Share Price 2025/10/09 00:00
Earnings2025/06/30
Annual Earnings2025/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

McKesson Corporation is covered by 40 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Gregory BolanAvondale Partners
Eric ColdwellBaird