McKesson Corporation (MCK) fair value: what the stock is really worth
We calculate from audited financials what McKesson Corporation is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 17, 2026.
How to read this chart
60‑month range $179.95 – $994.59 · fair‑value band $604.58 – $1,034 · the $886.47 price screens above the $819.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 17, 2026.
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.
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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.
Stock analysis
McKesson Corporation (MCK) currently trades at $886.47, while our model-based Fair Value estimate is $819.31, implying the stock looks roughly 8.2% fairly valued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $943.17 per share, and 9 of the 23 models we run sit above the $886.47 price.
Bear case: the Earnings-Based group reads lowest at $390.88, and 14 of the 23 models stay below the price. Evidence for this calculation is medium.
Scenario range: $604.58 (bear) to $1,034 (bull), the price of $886.47 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Healthcare sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
McKesson Corporation reported revenue of $403B in FY2026 versus $264B in FY2022, a compound +11.2%/yr. Reported net income was $4.8B in FY2026, compounding +43.8%/yr from FY2022.
Key figures
Market cap $110B · P/E ratio 23.1 · P/S ratio 0.27 · EPS (TTM) $38.36 · Dividend yield 0.4% · Net margin 1.2% · Return on assets (EBIT) 6.2% · Operating margin 2.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 11% below its 52-week high and 40% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at 25% fair-value upside, at −8%, MCK screens richer than that median.
Fair Value models
Bear $604.58Fair Value $819.31Bull $1,034
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then ($16.88 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.78/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+12.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.1%
Revenue growth 31 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.7%
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What shareholders gained per year (last 5 years) (mathematically smoothed) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip.
+40.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+39.8%
Dividend (yield on the price)0.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.45% vs 15%, picking up
Profit margin 2022 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.1% → 2%
2026 sits 53% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Growth Forecast
Price in line with expectations
The price assumes less growth than the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+4.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.5%
Yearly sales growth analysts expect, extended to five years.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Medical Distribution · 80 stocks
Beats the industry median on 4/12 measures
Overall it trails its industry peers.
Valuation
Quality Score67 · Top 25%
Fair Value upside−10% · Below median
Profitability
Return on assets5% · Top 25%
Net margin (TTM)1% · Below median
Operating margin (TTM)2% · Below median
Growth and dividend
Revenue growth6% · Above median
Dividend yield (TTM)0.4% · Bottom 25%
Valuation Multiplesvs Medical Distribution median · lower = cheaper
P/E (TTM)23.1× · Pricier than median
P/S (TTM)0.23× · Cheaper than median
P/FCF16.5× · Priciest 25%
EV/EBITDA13.9× · Priciest 25%
PEG1.57× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)23· sector 28
FUTURE (revenue growth)30· sector 16
PAST (return on equity)0· sector 23
HEALTH (low debt)100· sector 97
DIVIDEND (yield)7· sector 59
PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.
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Cite: Fair Value Calculator (2026). "McKesson Corporation Fair Value". https://www.fairvalue-calculator.com/stock/MCK
Frequently asked questions
Is McKesson Corporation (MCK) overvalued or undervalued?
As of Sep 17, 2026, our model estimates a fair value of $819.31 versus a price of $886.47, about −8% upside (fairly valued).
What is the fair value of MCK?
Our model-based fair value for McKesson Corporation is $819.31 (as of Sep 17, 2026), built from audited fundamentals. The current price: $886.47.
What is the quality score of MCK?
McKesson Corporation has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for McKesson Corporation (MCK)?
Our model-based price target is the fair value of $819.31 (as of Sep 17, 2026) from 23 valuation models. Cautious scenario $604.58, optimistic scenario $1,034. It is a calculation from audited fundamentals, not an analyst target.
What is the McKesson Corporation stock forecast for 2026?
Our models put fair value at $819.31, about −8% upside versus a price of $886.47 (fairly valued). Cautious scenario $604.58, optimistic scenario $1,034. The calculation is refreshed regularly with new filings.
What is the revenue of McKesson Corporation (MCK)?
McKesson Corporation reported trailing-twelve-month revenue of about $403B (latest available figure, as of Sep 17, 2026).
Does McKesson Corporation pay a dividend?
McKesson Corporation currently shows a dividend yield of about 0.36% relative to its recent price (as of Sep 17, 2026).
What growth is priced into McKesson Corporation (MCK)?
For today's price to be fair in a discounted-cash-flow model, McKesson Corporation would have to grow free cash flow by +4.5 % per year for five years (discount rate 8.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +11.1 % per year. As of Sep 17, 2026.
What discount rate (WACC) does the fair value of MCK use?
Our models discount McKesson Corporation at 8.1 %: a base by market capitalisation (large), damped by beta 0.32, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For McKesson Corporation that is +4.5 % per year a year over ten years, using the same discount rate (8.1 %) and the same formula as our fair value.
How much growth has McKesson Corporation (MCK) delivered so far?
Over the past 5 years revenue at McKesson Corporation grew +11.1 % a year. The price currently implies +4.5 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of McKesson Corporation (MCK) growing?
The median revenue growth in the sector is +4.3 % a year. That is the yardstick for the growth priced into McKesson Corporation (+4.5 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of McKesson Corporation (MCK)?
The free-cash-flow yield on the price is 5.27 %: that much free cash flow McKesson Corporation produces per unit of market value. When it exceeds the discount rate of our models (8.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of McKesson Corporation (MCK)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For McKesson Corporation it is $819.31 per share (as of Sep 17, 2026), against a price of $886.47. It is the blended result of 23 valuation models (cash flow, earnings, asset, dividend).
Is McKesson Corporation stock overvalued or undervalued in 2026?
As of Sep 17, 2026, MCK trades above its calculated fair value: price $886.47, fair value $819.31, a gap of about −8% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of MCK?
No. The price is what the market pays today ($886.47); the fair value is what the company's own numbers justify ($819.31). For McKesson Corporation the two are $67.16 per share apart. That gap is exactly why we show both numbers side by side.
How much is McKesson Corporation worth?
The market values McKesson Corporation at about $110B (market capitalisation, as of Sep 17, 2026). Per share that is $886.47; our models calculate a fair value of $819.31 per share.
What do the bullish and bearish scenarios say about MCK?
Our models span a range for McKesson Corporation: cautious scenario $604.58, base $819.31, optimistic $1,034 per share (as of Sep 17, 2026, price $886.47). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MCK?
McKesson Corporation trades at a price-to-earnings ratio of 23.1 (as of Sep 17, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $819.31 is built from several models across several years. Other multiples: PEG 1.6, P/S 0.2, EV/EBITDA 13.9.
What is the PEG ratio of MCK?
The PEG ratio of McKesson Corporation is 1.57 (P/E divided by earnings growth, as of Sep 17, 2026). That is above 1, so the growth is already paid for in the price.
How far is MCK from its 52-week high?
McKesson Corporation trades at $886.47, about 11% below its 52-week high of $997.90 and 40% above the low of $634.42 (as of Sep 17, 2026). Distance from the high says nothing about value: that is what the fair value of $819.31 is for.
Which stocks are comparable to McKesson Corporation?
From the same area (Healthcare) we also value Cencora, Inc, Cardinal Health, Inc, Henry Schein, Inc, Shanghai Pharmaceuticals Holding, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is McKesson Corporation stock attractive at the current price?
The data as of Sep 17, 2026: price $886.47, calculated fair value $819.31 (−8%), Quality Score 66/100, from 23 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of MCK calculated?
We run McKesson Corporation through 23 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $819.31, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 16.1 % above its aggregate fair value. McKesson Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of McKesson Corporation (MCK)?
The closing price on Sep 21, 2026 was $886.47. Our model-based fair value is $819.31, about −8% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with McKesson Corporation right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the upper half of our model range, so the margin of safety is thin. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Where does the earnings growth of McKesson Corporation (MCK) come from?
Earnings per share at McKesson Corporation grew +9.3 % a year from 2015 to 2026. Broken into its drivers: revenue per share +14.5 %, EBIT margin −3.5 %, tax rate +1.2 %, residual (interest, one-offs) −2.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of McKesson Corporation
How large is the market capitalisation of McKesson Corporation (MCK)?
The market capitalisation of McKesson Corporation is $110B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of McKesson Corporation (MCK)?
The price-to-sales ratio of McKesson Corporation is 0.27 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of McKesson Corporation (MCK)?
Earnings per share at McKesson Corporation are $38.36 (price ÷ EPS = P/E 23.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of McKesson Corporation (MCK)?
The dividend yield of McKesson Corporation is 0.4% (payout 8.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of McKesson Corporation (MCK)?
The net margin of McKesson Corporation is 1.2% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the EBIT return on assets of McKesson Corporation (MCK)?
On an EBIT basis the return on assets of McKesson Corporation is 6.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of McKesson Corporation (MCK)?
The operating margin of McKesson Corporation is 2.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at McKesson Corporation (MCK)?
Revenue at McKesson Corporation is growing +6.0% versus a year earlier (3y avg +13.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at McKesson Corporation (MCK)?
Earnings per share at McKesson Corporation are growing +37.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does McKesson Corporation (MCK) carry?
The net debt of McKesson Corporation is $4.6B (fiscal year 2026, ≈ 0.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Sep 17, 2026