We’ve recently updated our valuation analysis.

McKesson Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/EBITDA11.8x
PEG Ratio4.5x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average16.4x
ABC AmerisourceBergen
18.3x6.0%US$31.7b
HSIC Henry Schein
18.4x4.5%US$11.8b
PDCO Patterson Companies
14.7x7.2%US$2.9b
OMI Owens & Minor
14x5.5%US$1.7b
MCK McKesson
15.8x3.5%US$49.7b


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/a13.4%
n/an/an/a


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 Ratio15.8x
Fair PE Ratio27.2x

Price-To-Earnings vs Fair Ratio: MCK is good value based on its Price-To-Earnings Ratio (15.8x) compared to the estimated Fair Price-To-Earnings Ratio (27.2x).


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.


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$362.58
US$421.68
+16.3%
6.6%US$450.00US$348.00n/a14
Jan ’24US$375.12
US$417.18
+11.2%
6.4%US$450.00US$348.00n/a14
Dec ’23US$379.72
US$416.77
+9.8%
7.2%US$450.00US$336.00n/a13
Nov ’23US$382.04
US$385.85
+1.0%
8.4%US$423.00US$298.00n/a13
Oct ’23US$339.87
US$385.08
+13.3%
8.2%US$423.00US$298.00n/a13
Sep ’23US$363.83
US$377.15
+3.7%
11.8%US$414.00US$235.00n/a13
Aug ’23US$342.42
US$363.31
+6.1%
10.9%US$395.00US$235.00n/a13
Jul ’23US$329.53
US$362.31
+9.9%
10.8%US$395.00US$235.00n/a13
Jun ’23US$322.21
US$359.62
+11.6%
10.9%US$395.00US$235.00n/a13
May ’23US$309.61
US$326.15
+5.3%
12.9%US$375.00US$235.00n/a13
Apr ’23US$307.00
US$302.31
-1.5%
9.3%US$340.00US$235.00n/a13
Mar ’23US$271.75
US$300.23
+10.5%
9.1%US$340.00US$235.00n/a13
Feb ’23US$256.92
US$280.31
+9.1%
11.1%US$333.00US$210.00US$370.9813
Jan ’23US$248.57
US$265.46
+6.8%
11.0%US$300.00US$210.00US$375.1213
Dec ’22US$215.41
US$250.69
+16.4%
8.5%US$280.00US$210.00US$379.7213
Nov ’22US$208.08
US$241.31
+16.0%
7.9%US$270.00US$210.00US$382.0413
Oct ’22US$200.02
US$239.31
+19.6%
7.9%US$270.00US$210.00US$339.8713
Sep ’22US$202.99
US$238.38
+17.4%
8.6%US$270.00US$198.00US$363.8313
Aug ’22US$203.83
US$222.38
+9.1%
5.7%US$240.00US$198.00US$342.4213
Jul ’22US$192.67
US$222.93
+15.7%
5.8%US$240.00US$198.00US$329.5314
Jun ’22US$191.83
US$224.31
+16.9%
6.7%US$257.00US$198.00US$322.2116
May ’22US$187.56
US$216.69
+15.5%
6.5%US$240.00US$190.00US$309.6116
Apr ’22US$193.57
US$215.75
+11.5%
7.2%US$245.00US$190.00US$307.0016
Mar ’22US$173.75
US$214.56
+23.5%
7.3%US$245.00US$190.00US$271.7516
Feb ’22US$179.73
US$204.50
+13.8%
9.4%US$245.00US$165.00US$256.9216


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