MCK Relative Valuation
MCK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MCK is overvalued; if below, it's undervalued.
Historical Valuation
McKesson Corp (MCK) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.01 is considered Overvalued compared with the five-year average of 14.67. The fair price of McKesson Corp (MCK) is between 513.91 to 733.94 according to relative valuation methord. Compared to the current price of 823.95 USD , McKesson Corp is Overvalued By 12.26%.
Relative Value
Fair Zone
513.91-733.94
Current Price：823.95
12.26%
Overvalued
20.01
PE
1Y
3Y
5Y
15.16
EV/EBITDA
McKesson Corp. (MCK) has a current EV/EBITDA of 15.16. The 5-year average EV/EBITDA is 11.16. The thresholds are as follows: Strongly Undervalued below 6.38, Undervalued between 6.38 and 8.77, Fairly Valued between 13.56 and 8.77, Overvalued between 13.56 and 15.95, and Strongly Overvalued above 15.95. The current Forward EV/EBITDA of 15.16 falls within the Overvalued range.
16.12
EV/EBIT
McKesson Corp. (MCK) has a current EV/EBIT of 16.12. The 5-year average EV/EBIT is 12.28. The thresholds are as follows: Strongly Undervalued below 7.41, Undervalued between 7.41 and 9.85, Fairly Valued between 14.71 and 9.85, Overvalued between 14.71 and 17.14, and Strongly Overvalued above 17.14. The current Forward EV/EBIT of 16.12 falls within the Overvalued range.
0.24
PS
McKesson Corp. (MCK) has a current PS of 0.24. The 5-year average PS is 0.18. The thresholds are as follows: Strongly Undervalued below 0.11, Undervalued between 0.11 and 0.14, Fairly Valued between 0.21 and 0.14, Overvalued between 0.21 and 0.25, and Strongly Overvalued above 0.25. The current Forward PS of 0.24 falls within the Overvalued range.
16.57
P/OCF
McKesson Corp. (MCK) has a current P/OCF of 16.57. The 5-year average P/OCF is 11.98. The thresholds are as follows: Strongly Undervalued below 6.55, Undervalued between 6.55 and 9.27, Fairly Valued between 14.70 and 9.27, Overvalued between 14.70 and 17.42, and Strongly Overvalued above 17.42. The current Forward P/OCF of 16.57 falls within the Overvalued range.
19.55
P/FCF
McKesson Corp. (MCK) has a current P/FCF of 19.55. The 5-year average P/FCF is 14.26. The thresholds are as follows: Strongly Undervalued below 8.11, Undervalued between 8.11 and 11.18, Fairly Valued between 17.34 and 11.18, Overvalued between 17.34 and 20.41, and Strongly Overvalued above 20.41. The current Forward P/FCF of 19.55 falls within the Overvalued range.
McKesson Corp (MCK) has a current Price-to-Book (P/B) ratio of -58.72. Compared to its 3-year average P/B ratio of -35.48 , the current P/B ratio is approximately 65.50% higher. Relative to its 5-year average P/B ratio of -108.83, the current P/B ratio is about -46.05% higher. McKesson Corp (MCK) has a Forward Free Cash Flow (FCF) yield of approximately 6.25%. Compared to its 3-year average FCF yield of 6.34%, the current FCF yield is approximately -1.33% lower. Relative to its 5-year average FCF yield of 8.43% , the current FCF yield is about -25.80% lower.
-58.72
P/B
Median3y
-35.48
Median5y
-108.83
6.25
FCF Yield
Median3y
6.34
Median5y
8.43
Competitors Valuation Multiple
The average P/S ratio for MCK's competitors is 0.56, providing a benchmark for relative valuation. McKesson Corp Corp (MCK) exhibits a P/S ratio of 0.24, which is -57.48% above the industry average. Given its robust revenue growth of 10.14%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MCK increased by 38.54% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 0.31 to 1.13.
The secondary factor is the Revenue Growth, contributed 10.14%to the performance.
Overall, the performance of MCK in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is McKesson Corp (MCK) currently overvalued or undervalued?
McKesson Corp (MCK) is now in the Overvalued zone, suggesting that its current forward PE ratio of 20.01 is considered Overvalued compared with the five-year average of 14.67. The fair price of McKesson Corp (MCK) is between 513.91 to 733.94 according to relative valuation methord. Compared to the current price of 823.95 USD , McKesson Corp is Overvalued By 12.26% .
What is McKesson Corp (MCK) fair value?
MCK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of McKesson Corp (MCK) is between 513.91 to 733.94 according to relative valuation methord.
How does MCK's valuation metrics compare to the industry average?
The average P/S ratio for MCK's competitors is 0.56, providing a benchmark for relative valuation. McKesson Corp Corp (MCK) exhibits a P/S ratio of 0.24, which is -57.48% above the industry average. Given its robust revenue growth of 10.14%, this premium appears unsustainable.
What is the current P/B ratio for McKesson Corp (MCK) as of Jan 08 2026?
As of Jan 08 2026, McKesson Corp (MCK) has a P/B ratio of -58.72. This indicates that the market values MCK at -58.72 times its book value.
What is the current FCF Yield for McKesson Corp (MCK) as of Jan 08 2026?
As of Jan 08 2026, McKesson Corp (MCK) has a FCF Yield of 6.25%. This means that for every dollar of McKesson Corp’s market capitalization, the company generates 6.25 cents in free cash flow.
What is the current Forward P/E ratio for McKesson Corp (MCK) as of Jan 08 2026?
As of Jan 08 2026, McKesson Corp (MCK) has a Forward P/E ratio of 20.01. This means the market is willing to pay $20.01 for every dollar of McKesson Corp’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for McKesson Corp (MCK) as of Jan 08 2026?
As of Jan 08 2026, McKesson Corp (MCK) has a Forward P/S ratio of 0.24. This means the market is valuing MCK at $0.24 for every dollar of expected revenue over the next 12 months.