McKesson (MCK): Assessing Valuation as Business Restructuring Targets High-Growth Healthcare Segments

McKesson (MCK) just made headlines by announcing a comprehensive restructuring of its business segments, placing a spotlight on high-growth areas such as oncology, multispecialty services, and biopharma partnerships. Management’s goal is to sharpen the company’s strategic focus and improve transparency as it heads into the second quarter of fiscal 2026. For anyone weighing their next move with MCK stocks, this shakeup is not just corporate housekeeping; it may be a sign the leadership believes growth opportunities ahead are worth reorganizing for.

While the market’s reaction has been measured, momentum has quietly built over the year. McKesson’s share price has gained nearly 39% in the past 12 months, handily outpacing many of its large-cap peers. The restructuring news follows strong annual earnings growth and an ongoing expansion into higher-margin offerings. Taken together, these factors are making investors look past short-term bumps in favor of McKesson’s long-term earnings potential.

With all this in play, some investors may be wondering whether McKesson’s stock is presenting a fresh opportunity or whether the market is already factoring in those future growth prospects.

Most Popular Narrative: 11.6% Undervalued

Based on the most widely followed narrative, McKesson is currently seen as trading below its fair value, with an upside potential according to recent analytical consensus. This valuation leans on expectations for robust operational improvements and earnings growth in the coming years, despite some industry headwinds.

Investments in digitization, automation, and advanced analytics across distribution centers and logistics (such as automated picking systems, AI, and robotics) are enhancing operational efficiency. These initiatives are driving measurable reductions in operating expenses and supporting long-term net margin improvement.

Want to know the secret behind this undervalued call? The projections hinge on aggressive earnings power, bigger margins, and business transformation driven by technology. What exactly are analysts forecasting for revenue, profit, and multiples? The full narrative breaks down breakthrough assumptions that could tilt the balance for McKesson's next chapter.

Result: Fair Value of $788.57 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, it is important to note that regulatory action on drug pricing or rapid industry consolidation could quickly derail McKesson's expected margin expansion story.

Find out about the key risks to this McKesson narrative.

Another View: Earnings-Based Valuation Poses a Challenge

While the main narrative sees McKesson as undervalued, a look at valuation through the lens of earnings multiples tells a different story. By this measure, McKesson appears expensive compared to its industry. Could the optimism be overdone?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding McKesson to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own McKesson Narrative

If you see things differently or want to dig into the numbers on your own terms, you can shape your own McKesson narrative in just a few minutes. Do it your way

A great starting point for your McKesson research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Smart Investment Opportunities?

Expand your portfolio by tapping into powerful screening tools that highlight stocks with the strongest growth, innovation, and value potential. The next standout idea could be just a click away. Don't let it pass you by.

• Capture high yields and consistent returns when you check out companies offering dividend stocks with yields > 3% for stable income in any market.
• Uncover the future of medicine and technology by researching healthcare AI stocks at the forefront of AI advances in healthcare.
• Seize opportunities in companies trading below their true worth by starting with our screen for undervalued stocks based on cash flows and find bargains before the crowd.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com