MCK PE Ratio & Valuation, Is MCK Overvalued

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 14.84. The fair price of McKesson Corp (MCK) is between 628.89 to 874.86 according to relative valuation method. Compared to the current price of 942.16 USD , McKesson Corp By Overvalued By 7.69%.

Relative Value

Fair Zone

628.89-874.86

Current Price：942.16

7.69%

Overvalued

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

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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 -36.40, the current P/B ratio is approximately 61.29% higher. Relative to its 5-year average P/B ratio of -110.48, the current P/B ratio is about -46.86% 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 6.20%, the current FCF yield is approximately 0.82% lower. Relative to its 5-year average FCF yield of 8.07%, the current FCF yield is about -22.55% lower.

Competitors Valuation Multiple

AI Analysis

The average P/S ratio for MCK competitors is 0.68, providing a benchmark for relative valuation. McKesson Corp Corp (MCK.N) exhibits a P/S ratio of 0.24, which is -64.57% above the industry average. Given its robust revenue growth of 11.40%, this premium appears unsustainable.

P/E

P/S

EV/EBITDA

EV/EBIT

Earnings Growth

Market Cap

Performance Decomposition

AI Analysis

Market capitalization of MCK increased by 0.00% over the past 1 year(s). The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.

The secondary factor is the Unknown, contributed 0.00% to the performance.

Overall, the performance of MCK in the past 1 year(s) is driven by Unknown.

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Frequently Asked Questions

Is MCK currently overvalued or undervalued?

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 628.89 to 874.86 according to relative valuation method.

How does MCK's valuation metrics compare to the industry average?

The average P/S ratio for MCK's competitors is 0.68, providing a benchmark for relative valuation. McKesson Corp Corp (MCK) exhibits a P/S ratio of 0.24, which is -64.57% above the industry average. Given its robust revenue growth of 11.40%, this premium appears unsustainable.

What is the current P/B ratio for McKesson Corp (MCK) as of Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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 Mar 10 2026?

As of Mar 10 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.

MCK Valuation