McKesson Corporation (MCK) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+11.2%

$1,115.75

vs $1,003.05 price

Levered DCF

$1,437.56

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.91

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	22.45×	26.02×	23.8×	14.11×	41.88×	-7.22×	27.22×	699.06×
P/B	-49.24×	-41.34×	-36.26×	-27.05×	-20.52×	-1,491.59×	4.81×	2.88×
P/S	0.27×	0.24×	0.23×	0.18×	0.18×	0.13×	0.11×	0.11×
EV / EBITDA	15.55×	16.65×	15.91×	9.63×	17.67×	-8.77×	12.9×	15.33×
Gross margin	3.6%	3.5%	3.9%	4.3%	4.8%	4.9%	4.9%	5.0%
Operating margin	1.6%	1.2%	1.3%	1.6%	1.0%	1.5%	1.3%	1.4%
Net margin	1.2%	0.9%	1.0%	1.3%	0.4%	-1.9%	0.4%	0.0%
Current ratio	0.85×	0.9×	0.92×	0.92×	0.95×	1.03×	0.99×	1.02×
Debt / equity	-3.97×	-3.56×	-3.75×	-3.93×	-3.32×	-447.86×	1.85×	0.94×
Interest coverage	26.13×	17.08×	16.16×	17.96×	15.3×	16.18×	12.1×	11.66×
Dividend yield	0.4%	0.4%	0.4%	0.6%	0.6%	0.9%	1.2%	1.3%
Payout ratio	8.0%	10.5%	10.5%	8.2%	24.9%	-6.1%	32.7%	858.8%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	-219.2%	-158.9%	-152.3%	-191.7%	-49.0%	21614.3%	17.7%	0.4%
Return on invested capital	31.5%	23.3%	21.2%	22.9%	11.5%	13.7%	14.8%	5.7%
Return on assets	5.8%	4.4%	4.5%	5.7%	1.8%	-7.0%	1.5%	0.1%
Free cash flow yield	5.1%	6.1%	5.1%	9.2%	8.4%	12.5%	15.8%	14.9%
Earnings yield	4.5%	3.8%	4.2%	7.1%	2.4%	-14.5%	3.7%	0.1%
Enterprise value	$111.6B	$87.4B	$74.3B	$52.9B	$50.6B	$34.5B	$29.9B	$27.9B
Net debt / EBITDA	0.65×	0.32×	0.6×	0.48×	1.4×	-0.8×	2.33×	2.53×
Cash conversion cycle (days)	-8	-8	-6	-6	-2	-2	-2	0