McKesson (MCK) Stock Analysis
NYQ · Healthcare · Medical Distribution
$866.64
-2.72 (-0.31%)
MCK Interactive Price Chart & Trading Signals
MCK Stock Snapshot — Valuation, Risk & Technical Signals
MCK Key Fundamentals, Analyst Targets & Company Profile
Key Financial Ratios
Market Cap
$101.04B
P/E Ratio
23.25
Forward P/E
17.17
PEG Ratio
1.64
P/B Ratio
-23.71
EPS
$37.27
Dividend Yield
0.43%
52W Range
$723.68 – $999.00
Beta
0.31
Volume
0.5M
ROE
—
Profit Margin
1.1%
Revenue Growth
7.7%
Gross Margin
3.6%
EV/EBITDA
15.64
Analyst Target
$979.36
The trailing price-to-earnings ratio stands at 23.3x. Forward P/E of 17.2x implies earnings expansion expected. EV/EBITDA sits at 15.64x. Market capitalization is $101.04B. Revenue is growing at 7.7% on a trailing basis. Earnings are compressing at -17.6%. Profit margins are 1.1%. Beta of 0.31 indicates defensive profile.
Analyst Consensus
Recommendation
Buy
Low Target
$845.00
Mean Target
$979.36
High Target
$1065.00
Based on 14 analysts
About 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, 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, and 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.
MCK Deep Dive Analysis
Bottom Line
Verdict
OvervaluedBest for
General investorWatch out for
Premium valuation, Earnings declineNon-zero inputs
4/5Counts non-zero values for price, P/E, beta, macro risk, and revenue growth; zero may mean unavailable or be a genuine zero.
McKesson Corporation (MCK) trades above our multi-model fair value estimate of $462.63 by approximately 46.6%. Trailing P/E: 23.3x. Profitability signals include profit margin of 1.1%. Recent growth metrics show revenue growth of 7.7% and earnings growth of -17.6%. Risk profile: defensive beta of 0.31. Consensus: buy.
Valuation, Growth & Risk
Valuation
Overvalued
P/E 23.3x
Price is above what fundamentals suggest.
Growth
Expanding
Rev 7.7%
Revenue is outpacing the market.
Risk
Low
Beta 0.31
Movement is likely to track the broader market.
Valuation Snapshot
McKesson Corporation (MCK) trades above our multi-model fair value estimate of $462.63 by approximately 46.6%. The trailing price-to-earnings ratio stands at 23.3x. Forward P/E of 17.2x suggests earnings compression ahead. Price-to-sales is 0.2x. EV/EBITDA sits at 15.6x. Market capitalization is $101.04B.
Why it matters: Paying a premium works only if the company keeps growing faster than expected.
Growth & Profitability
Revenue is growing at 7.7% on a trailing basis. Earnings are compressing at -17.6%. Profit margins are 1.1%. Return on assets is 4.7%.
Why it matters: Growing revenue with healthy margins usually means the business is gaining market share or pricing power.
Risk Profile
Beta of 0.31 indicates defensive profile. Net debt position is $6.63B.
Why it matters: Lower risk means steadier returns, but often with less upside in bull markets.
Analyst Context
Analyst consensus target of $979.36 implies 13.0% upside. Target range spans $845.00 to $1065.00. 14 analysts cover the stock. Consensus recommendation: buy.
Why it matters: Analyst targets reflect what professionals expect over 12 months. A wide gap between price and target can mean the market disagrees with the consensus.
Investor Fit
Free cash flow yield of 5.4% is attractive for cash-flow-focused investors.
Takeaway: Match the stock's risk-reward profile with your own goals and time horizon. No single metric tells the whole story.
Data Methodology & Sources
Market Data (Facts)
- Price, volume, and market cap: Yahoo Finance (may be delayed)
- P/E, EPS, revenue, and debt: Yahoo Finance fundamentals
- Analyst estimates: Yahoo Finance (coverage and update times vary)
- Insider transactions: Yahoo Finance (reporting may be delayed)
QuantSoar Model (Derived)
- Fair value: available outputs from seven models; outliers are filtered using MAD (k=3.5), then combined with fixed model weights.
- Margin of Safety = (Fair Value − Displayed Price) / Displayed Price × 100
- Composite Score: 40% Value + 30% Momentum + 30% Risk
- Verdict Gauge: Base 50 + Valuation (up to ±25) + Whale sentiment (up to ±10) + Insider buying (+5) + Macro risk (up to ±10) + Technical signal (up to ±10). Analyst consensus is separate.
Model outputs are estimates based on available data and are not investment advice. Cross-check with primary sources before making investment decisions.
MCK Overvalued
McKesson Corporation (MCK) trades above our multi-model fair value estimate of $462.63 by approximately 46.6%.
Frequently Asked Questions
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About the Author
Phasakorn Traklang (Peach) — Founder
Phasakorn Traklang (Peach) is the founder of QuantSoar, bringing expertise in SEO, web development, and technical analytics to build an AI-powered investment platform accessible to retail investors worldwide.
Connect on LinkedInInvestment Disclaimer: Tax treatment can depend on tax residence, account type, and tax year. This information is general and is not personal tax or investment advice. SEC
Data: Yahoo Finance / SEC EDGAR / Alpha Vantage / Finnhub. AI outputs verified against source data.