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 19.58 is considered Overvalued compared with the five-year average of 14.51. The fair price of McKesson Corp (MCK) is between 482.30 to 701.19 according to relative valuation methord. Compared to the current price of 805.37 USD , McKesson Corp is Overvalued By 14.86%.
Relative Value
Fair Zone
482.30-701.19
Current Price：805.37
14.86%
Overvalued
19.80
PE
1Y
3Y
5Y
Trailing
Forward
14.85
EV/EBITDA
McKesson Corp. (MCK) has a current EV/EBITDA of 14.85. The 5-year average EV/EBITDA is 11.04. The thresholds are as follows: Strongly Undervalued below 6.28, Undervalued between 6.28 and 8.66, Fairly Valued between 13.42 and 8.66, Overvalued between 13.42 and 15.80, and Strongly Overvalued above 15.80. The current Forward EV/EBITDA of 14.85 falls within the Overvalued range.
16.07
EV/EBIT
McKesson Corp. (MCK) has a current EV/EBIT of 16.07. The 5-year average EV/EBIT is 12.17. The thresholds are as follows: Strongly Undervalued below 7.31, Undervalued between 7.31 and 9.74, Fairly Valued between 14.60 and 9.74, Overvalued between 14.60 and 17.02, and Strongly Overvalued above 17.02. The current Forward EV/EBIT of 16.07 falls within the Overvalued range.
0.23
PS
McKesson Corp. (MCK) has a current PS of 0.23. 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 0.23 falls within the Overvalued range.
16.21
P/OCF
McKesson Corp. (MCK) has a current P/OCF of 16.21. The 5-year average P/OCF is 11.83. The thresholds are as follows: Strongly Undervalued below 6.40, Undervalued between 6.40 and 9.12, Fairly Valued between 14.55 and 9.12, Overvalued between 14.55 and 17.27, and Strongly Overvalued above 17.27. The current Forward P/OCF of 16.21 falls within the Overvalued range.
19.12
P/FCF
McKesson Corp. (MCK) has a current P/FCF of 19.12. The 5-year average P/FCF is 14.08. The thresholds are as follows: Strongly Undervalued below 7.92, Undervalued between 7.92 and 11.00, Fairly Valued between 17.17 and 11.00, Overvalued between 17.17 and 20.25, and Strongly Overvalued above 20.25. The current Forward P/FCF of 19.12 falls within the Overvalued range.
McKesson Corp (MCK) has a current Price-to-Book (P/B) ratio of -57.43. Compared to its 3-year average P/B ratio of -34.66 , the current P/B ratio is approximately 65.69% higher. Relative to its 5-year average P/B ratio of -107.80, the current P/B ratio is about -46.73% higher. McKesson Corp (MCK) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 6.38%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 8.59% , the current FCF yield is about -100.00% lower.
-58.06
P/B
Median3y
-34.66
Median5y
-107.80
6.39
FCF Yield
Median3y
6.38
Median5y
8.59
Competitors Valuation Multiple
The average P/S ratio for MCK's competitors is 0.00, providing a benchmark for relative valuation. McKesson Corp Corp (MCK) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 10.14%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MCK increased by 42.86% 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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