McKesson
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, speci…
McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products; delivers products to retail pharmacies, hospitals, long-term care centers, clinics, and institutions; and provides logistics and distribution services for manufacturers. It also provides consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies; gene therapy with InspiroGene, practice consulting, and vaccine distribution services; and technology solutions, as well as research, insights, technologies, and services to improve cancer and specialty care. In addition, the company helps in solving medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. Further, it offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, patient enrollment, third-party logistics, and wholesale distribution support; medical-surgical supplies, laboratory equipment, pharmaceutical distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, hospital reference labs, nursing homes, hospice and home health care agencies, government facilities, and online marketplaces and retailers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF disagrees strongly.
Other models: USD 545.29–776.03 (median 709.61). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using TTM through 30 Sep 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 6.82% growth, 2.9% terminal growth, and 10.5% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 6.82%, discount rate 10.50%, terminal growth 2.90% (sector defaults). See a worked example.
Blended growth assumption: 6.8% (sector default 6.8%, analyst revenue consensus 6.8%).
Analyst consensus expects revenue growth of 6.9% a year; the growth assumption used is 6.8%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 921.40 (-14.0%)
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EPS-based Gordon proxy
— USD 545.29 (-49.1%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 921.40 (-14.0%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 776.03 (-27.6%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 709.61 (-33.8%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 915.99 (-14.6%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 6104.00 (+469.4%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 681.10 | -57.4% |
| Base USD 921.40 | -16.3% |
| Bull USD 1339.52 | 20.0% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 1072.00 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.9%, discount 10.5%).
Compare: the market implies 10.4% a year, this model assumes 6.8%. The market expects more than this model does, which is why it reads as overvalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.5% | 9.5% | 10.5% | 11.5% | 12.5% |
|---|---|---|---|---|---|
| 2.8% | 1063.49 | 896.40 | 773.27 | 678.78 | 603.97 |
| 4.8% | 1163.88 | 980.09 | 844.70 | 740.84 | 658.65 |
| 6.8% | 1271.81 | 1070.00 | 921.40 | 807.44 | 717.29 |
| 8.8% | 1387.71 | 1166.50 | 1003.66 | 878.82 | 780.09 |
| 10.8% | 1512.02 | 1269.94 | 1091.78 | 955.24 | 847.30 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 80 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +10.9% a year | 20 / 20 |
| Balance sheet | net debt 0.6x EBITDA | 20 / 20 |
| Margins | EBITDA margin 2% | 0 / 20 |
Peers in Health Care
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| MCK (this company) | USD 1072.00 | -16.3% | 26.6 | 19.6 | 0.3% | 80 |
| ZEAL.CO Zealand Pharma A/S | DKK 235.70 | 35.7% | 6.1 | 0.9 | – | 72 |
| CI Cigna | USD 301.48 | 28.8% | 12.4 | 1.9 | 2.0% | 70 |
| CVS CVS Health | USD 81.33 | 12.4% | 9.5 | 1.3 | 3.3% | 70 |
| BAVA.CO Bavarian Nordic A/S | DKK 239.80 | 12.4% | 11.8 | 1.4 | – | 92 |
| AMP.MI Amplifon S.p.A. | EUR 11.17 | 8.7% | 41.1 | – | 2.6% | 72 |
| ZBH Zimmer Biomet | USD 106.85 | 0.5% | 26.6 | 1.6 | 0.9% | 90 |
| GSK.L GSK plc | GBP 18.50 | -3.2% | 17.3 | 4.0 | 3.6% | 92 |
| SAN.PA Sanofi | EUR 82.64 | -4.2% | 12.9 | – | 4.7% | 92 |
| Peer median | 12.7 | 1.5 | ||||
Dividends
Paid in the last 12 months: USD 3.40 per share · yield 0.32% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 2.580 |
| 2025 | 3.060 |
| 2024 | 2.660 |
| 2023 | 2.320 |
| 2022 | 2.020 |
| 2021 | 1.780 |
Trailing 12-month financials
TTM through 30 Sep 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:56
| Revenue | USD 418,790,000,000 |
|---|---|
| EBITDA | USD 7,287,000,000 |
| EBIT | USD 6,771,000,000 |
| Net income | USD 4,700,000,000 |
| Free cash flow | USD 7,031,000,000 |
| Capital expenditures | USD 584,000,000 |
| Debt | USD 11,161,000,000 |
| Cash | USD 6,528,000,000 |
| Working capital | USD -7,711,000,000 |
| Shares outstanding | 116,700,000 |
| Reported dividends per share | USD 3.4276 |