McKesson Corporation — Intrinsic Value & Fair Price

MCK

NYSEHealthcareMedical - DistributionCIK 0000927653mckesson.comAbout MCK

Last close · Oct 16, 20261,004.84+6.20 (+0.62%)

Market cap$117.2B

Model value · DCF · Perpetuity growth · 5y

1,222.69

McKesson closed at $1,004.84 — undervalued by 18% vs model.

731.33the model's range3,062.48

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. From a five-year discounted cash flow.

Other models

126.19 – 1,341.05

Wall St. target

988.50 2% above

Below model, 1y

17 of 20 days

Price and model value

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What the marks mean

Daily close

Valuation models

price $1,004.84 · as of Oct 17, 2026

DCF · Perpetuity growth · 5yused731.33 – 3,062.481,222.6918% undervalued DCF · Perpetuity growth · 10y822.59 – 3,305.861,341.0525% undervalued DCF · EBITDA exit · 5y487.18 – 1,050.58745.0935% overvalued DCF · EBITDA exit · 10y619.41 – 1,290.47905.1311% overvalued P/E · peers575.44 – 1,273.88850.8718% overvalued P/E · own history878.60 – 1,423.591,100.879% undervalued PEG—725.4739% overvalued EV/EBITDA · peers591.34 – 958.03732.6337% overvalued EV/Revenue · peers497.24 – 753.41615.2763% overvalued Earnings power value252.81 – 398.76310.41224% overvalued Dividend discount78.17 – 243.22126.19696% overvalued Wall St. consensus target—988.502% above Cost of capital (WACC)—7.12%—

DCF · Perpetuity growth · 5y leads for a mature, steady company — positive operating income and three years of positive free cash flow. How we value a stock walks through every input.

engine pkg:0.1.0

Dividends

Quarterly · as of Oct 16, 2026

Yield, trailing 12 months

0.34%

Past 2 years

low 0.31%high 0.54%

Dividends per share, a year at a time

Dividends / free cash flow, FY2026: 6.7%
Raised: 18 years in a row
Growth, 5 yrs: 14.5% a year
Last change: +14.6% · Sep 2026

Every payment, with ex-dates · latest $0.94, paid Oct 1, 2026

Research on MCK

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How it is valued

Valued asMature & stable

Moderate growth (~14% recent)Thin margins (1.2% net margin)Highly cyclical earningsHigh leverage (D/E 5.0x)

What growth the price implies: the reverse DCF

Key figures

FY2026 · chosen for mature companies

P/E

26.2×

EV / EBITDA

16.7×

FCF yield

4.4%

Dividend yield, TTM

0.34%

Beta

0.30

Cost of capital (WACC)

7.12%

On the lists: #15 Near 52-week highs

Full financials

Superinvestors

13F · Q2 2026

BridgewaterBridgewater Associates, LP$53.2M Stephen MandelLone Pine Capital LLC$43.7M

All 2 holders

Analyst actions

third-party, quoted

10-16UBS · target1,200.00

10-06Morgan Stanley · target977.00

08-19Barclays · target1,000.00

11-07Baird · “Outperform” from “Neutral”upgrade

Ratings, targets and estimates

Recent

filings, insider trades and key news

10-068-K · 7.01Regulation FD Disclosure 09-08Form 4 · SRutledge Napoleon B JR · 111 sh@ 891.45 08-288-K · 7.01Regulation FD Disclosure 08-10Form 4 · SLerman Bradley E · 301 sh@ 892.33 08-07Form 4 · ASrinivasan Ramesh (NMN) · 368 sh@ 0.00 08-0510-QQuarterly report

62 filings · 40 insider transactions

Comparable companies

by business, not by industry label

CORCencora CAHCardinal Health HSICHenry Schein CVSCVS Health CICigna

1 more company lists MCK as a comparable

SYYSysco

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One email a week across every stock we cover: 13F filings, insider trades, earnings and new research. It covers the whole market, not just MCK. No account.

About McKesson

McKesson Corporation is a prominent global provider of healthcare services, operating extensively in both the United States and international markets. Its diverse operations are strategically organized into four key business segments. The U.S. Pharmaceutical division plays a crucial role in the distribution of a comprehensive array of pharmaceutical products, encompassing branded, generic, specialty, biosimilar, and over-the-counter medications, alongside other health-related merchandise. This segment also delivers specialized support to community-based oncology and other specialty medical practices through practice management tools, technology solutions, clinical guidance, and broader business services. Furthermore, it assists pharmacies with consulting, outsourcing, and technology services, while also furnishing financial, operational, and clinical software solutions. Internationally, the company's dedicated segment provides distribution and support services to wholesale, institutional, and retail clients across 13 European nations and Canada. The Medical-Surgical Solutions unit is focused on supplying healthcare providers with essential medical-surgical products, sophisticated logistics management, and a variety of associated services. Finally, the Prescription Technology Solutions (RxTS) segment is designed to address complex medication challenges for patients. It collaborates with biopharmaceutical companies and life sciences partners to improve patient journeys, leveraging innovative solutions for medication access and adherence by connecting pharmacies, healthcare providers, payers, and biopharma entities. This segment further offers third-party logistics and wholesale distribution assistance. Founded in 1833, McKesson Corporation maintains its corporate headquarters in Irving, Texas.

CEO: Brian S. Tyler
Headquarters: Irving, TX
Employees: 42,300
IPO: 1994-11-10

Full company profile

Model estimates for research reference only, not investment advice. Every model rests on assumptions that may not match what happens; the formulas are in how we value a stock.