---
title: McKesson (MCK) — intrinsic value and fair price
canonical: https://sweetvaluelab.com/stocks/mck
ticker: MCK
as_of: 2026-10-17
sector: Healthcare
industry: Medical - Distribution
---
# McKesson (MCK)

McKesson (MCK) closed at $1,004.84 on Oct 16, 2026, undervalued by 18% vs its model value of $1,222.69 (from a five-year discounted cash flow).

## Key figures

| Figure | Value |
| --- | ---: |
| Last close | $1,004.84 (Oct 16, 2026) |
| Model value (from a five-year discounted cash flow) | $1,222.69 |
| Price vs model | undervalued by 18% vs model |
| Range of that model | $731.33 – $3,062.48 |
| Market value | $117.2B |
| P/E (fiscal 2026) | 26.2 |
| Net margin (fiscal 2026) | 1.2% |
| Free cash flow (fiscal 2026) | $5.7B |
| Dividend yield (trailing twelve months) | 0.34% |
| Beta | 0.30 |
| Cost of capital (WACC) | 7.12% |
| Business classification | Mature & Stable (Moderate growth (~14% recent), Thin margins (1.2% net margin), Highly cyclical earnings, High leverage (D/E 5.0x)) |

## On the stock lists

| List | Place | Figure | Page |
| --- | ---: | ---: | --- |
| Near 52-week highs | #15 | 0.0% | https://sweetvaluelab.com/lists/near-52-week-highs |

## Dividends

| Figure | Value |
| --- | ---: |
| Trailing dividend yield | 0.34% |
| Dividends per share, last 12 months | $3.40 |
| Dividends / free cash flow (fiscal 2026) | 6.7% |
| Raised | 18 years in a row |
| Growth over 5 years | 14.5% a year |
| Latest payment | $0.94, ex-date Sep 1, 2026, paid Oct 1, 2026 |

| Year of payments | Dividends per share |
| --- | ---: |
| To Aug 31, 2021 | $1.73 |
| To Aug 31, 2022 | $1.95 |
| To Aug 31, 2023 | $2.24 |
| To Aug 30, 2024 | $2.57 |
| To Sep 2, 2025 | $2.95 |
| Trailing twelve months (to Sep 1, 2026) | $3.40 |

## Valuation models

Each model's value per share and the role the engine gave it for this business. The headline above is one model's value; every other model is listed with its own, and each has a page of its own under the valuation. Computed Oct 17, 2026.

| Model | Role | Value per share | Low | High |
| --- | --- | ---: | ---: | ---: |
| DCF · Perpetuity growth · 5y | primary | $1,222.69 | $731.33 | $3,062.48 |
| DCF · Perpetuity growth · 10y | cross check | $1,341.05 | $822.59 | $3,305.86 |
| DCF · EBITDA exit · 5y | cross check | $745.09 | $487.18 | $1,050.58 |
| DCF · EBITDA exit · 10y | cross check | $905.13 | $619.41 | $1,290.47 |
| P/E · peers | cross check | $850.87 | $575.44 | $1,273.88 |
| P/E · own history | cross check | $1,100.87 | $878.60 | $1,423.59 |
| PEG | sanity check | $725.47 | $725.47 | $725.47 |
| EV/EBITDA · peers | cross check | $732.63 | $591.34 | $958.03 |
| EV/Revenue · peers | cross check | $615.27 | $497.24 | $753.41 |
| Earnings power value | cross check | $310.41 | $252.81 | $398.76 |
| Dividend discount | cross check | $126.19 | $78.17 | $243.22 |

## Insider activity (SEC Form 4)

Past 90 days: 0 open-market buys ($0) and 2 open-market sales ($367,540.8); 10b5-1 plan sales included.

| Date | Insider | Relationship | Transaction | Shares | Value |
| --- | --- | --- | --- | ---: | ---: |
| Sep 8, 2026 | Rutledge Napoleon B JR | SVP, Controller & CAO | Open-market sell (10b5-1 plan) | 111 | $98,951 |
| Aug 7, 2026 | Srinivasan Ramesh (NMN) | EVP and Chief Strategy Officer | Grant / award | 368 | $0 |
| Aug 10, 2026 | Lerman Bradley E | Director | Open-market sell | 301 | $268,589.8 |
| Jul 22, 2026 | Hinton James H. | Director | Grant / award | 277 | $0 |
| Jul 22, 2026 | Doughtie Lynne M | Director | Grant / award | 277 | $0 |

## Recent SEC filings

| Filed | Form | What | Filing |
| --- | --- | --- | --- |
| Oct 6, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/927653/000092765326000253/mck-20261006.htm |
| Aug 28, 2026 | 8-K | 7.01 Regulation FD Disclosure; 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/927653/000092765326000247/mck-20260825.htm |
| Aug 5, 2026 | 10-Q | Quarterly report | https://www.sec.gov/Archives/edgar/data/927653/000092765326000234/mck-20260630.htm |
| Aug 5, 2026 | 8-K | 2.02 Results of Operations (Earnings); 9.01 Financial Statements and Exhibits | https://www.sec.gov/Archives/edgar/data/927653/000092765326000232/mck-20260805.htm |
| Jul 24, 2026 | 8-K | 5.07 Submission of Matters to a Shareholder Vote | https://www.sec.gov/Archives/edgar/data/927653/000092765326000215/mck-20260722.htm |

## Superinvestors holding it (latest 13F)

| Manager | Quarter | Shares | Value |
| --- | --- | ---: | ---: |
| Bridgewater | 2026-06-30 | 70,358 | $53.2M |
| Stephen Mandel | 2026-06-30 | 57,851 | $43.7M |

2 tracked managers in all.

## About

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,…

---

Source: https://sweetvaluelab.com/stocks/mck (SweetValueLab, free, no account). Prices and statements from Financial Modeling Prep; filings from SEC EDGAR. Research and educational data, not investment advice; nothing here is a recommendation to buy, sell or hold any security.