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McKesson Europe Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: CAKF.Y ($4.1) is trading above our estimate of fair value ($2.96)

Significantly Below Fair Value: CAKF.Y is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for CAKF.Y?

Key metric: As CAKF.Y is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for CAKF.Y. This is calculated by dividing CAKF.Y's market cap by their current revenue.
What is CAKF.Y's PS Ratio?
PS Ratio0.5x
Sales€9.26b
Market Cap€4.92b

Price to Sales Ratio vs Peers

How does CAKF.Y's PS Ratio compare to its peers?

The above table shows the PS ratio for CAKF.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.4x
HSIC Henry Schein
0.7x4.5%US$9.2b
PDCO Patterson Companies
0.3x3.0%US$1.8b
OMI Owens & Minor
0.09x4.2%US$943.0m
AHCO AdaptHealth
0.4x3.4%US$1.3b
CAKF.Y McKesson Europe
0.5xn/aUS$4.9b

Price-To-Sales vs Peers: CAKF.Y is expensive based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.4x).


Price to Sales Ratio vs Industry

How does CAKF.Y's PS Ratio compare vs other companies in the US Healthcare Industry?

30 CompaniesPrice / SalesEstimated GrowthMarket Cap
MCK McKesson
0.2x8.1%US$79.75b
CVS CVS Health
0.2x4.6%US$71.86b
COR Cencora
0.2x6.4%US$48.16b
CNC Centene
0.2x5.5%US$30.47b
CAKF.Y 0.5xIndustry Avg. 1.0xNo. of Companies30PS012345+
30 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: CAKF.Y is good value based on its Price-To-Sales Ratio (0.5x) compared to the US Healthcare industry average (1.1x)


Price to Sales Ratio vs Fair Ratio

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

CAKF.Y PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate CAKF.Y's Price-To-Sales 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?

Analyst Forecast: Insufficient data to show price forecast.


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