McKesson Corporation (MCK) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
McKesson Corporation stock (MCK) is currently trading at $879.75. McKesson Corporation PE ratio is 25.45. McKesson Corporation PS ratio (Price-to-Sales) is 0.27. Analyst consensus price target for MCK is $997.67. WallStSmart rates MCK as Hold.
- MCK PE ratio analysis and historical PE chart
- MCK PS ratio (Price-to-Sales) history and trend
- MCK intrinsic value — DCF, Graham Number, EPV models
- MCK stock price prediction 2025 2026 2027 2028 2029 2030
- MCK fair value vs current price
- MCK insider transactions and insider buying
- Is MCK undervalued or overvalued?
- McKesson Corporation financial analysis — revenue, earnings, cash flow
- MCK Piotroski F-Score and Altman Z-Score
- MCK analyst price target and Smart Rating
McKesson Corporation
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MCK Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · McKesson Corporation (MCK)
MCK trades at a significant discount to its Graham intrinsic value of $1622.09, offering a 41% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
McKesson Corporation (MCK) · 9 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, peg ratio, price/sales. Concerns around operating margin and price/book. Fundamentals are solid but monitor weak areas for improvement.
McKesson Corporation (MCK) Key Strengths (5)
Paying less than $1 for every $1 of annual revenue
Earnings per share surging 38.00% year-over-year
91.48% of shares held by major funds and institutions
Large-cap company with substantial market presence
Good growth relative to its price
Supporting Valuation Data
McKesson Corporation (MCK) Areas to Watch (4)
Near-zero operating margins, business under pressure
Very expensive at 5.0x book value
Very thin margins, barely profitable
Solid revenue growth at 11.40% per year
Supporting Valuation Data
McKesson Corporation (MCK) Detailed Analysis Report
Overall Assessment
This company scores 56/100 in our Smart Analysis, earning a C grade. Out of 9 metrics analyzed, 5 register as strengths (avg 9.4/10) while 4 fall into concern territory (avg 2.8/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, EPS Growth, Institutional Own.. Valuation metrics including PEG Ratio (1.07), Price/Sales (0.27) suggest the stock is attractively priced. Growth metrics are encouraging with EPS Growth at 38.00%.
The Bear Case
The primary concerns are Operating Margin, Price/Book, Profit Margin. Some valuation metrics including Price/Book (5.04) suggest expensive pricing. Growth concerns include Revenue Growth at 11.40%, which may limit upside. Profitability pressure is visible in Operating Margin at 1.55%, Profit Margin at 1.09%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Operating Margin at 1.55% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 11.40% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Price/Sales, EPS Growth) and negatives (Operating Margin, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
MCK Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
MCK's Price-to-Sales ratio of 0.27x trades at a 44% premium to its historical average of 0.19x (82th percentile). The current valuation is 14% below its historical high of 0.32x set in May 2014, and 204% above its historical low of 0.09x in Apr 2009.
WallStSmart Analysis Synopsis
Data-driven financial summary for McKesson Corporation (MCK) · HEALTHCARE › MEDICAL DISTRIBUTION
The Big Picture
McKesson Corporation operates as a stable business with moderate growth and solid fundamentals. Revenue reached 398.0B with 11% growth year-over-year. Profit margins are thin at 1.1%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Generating 1.1B in free cash flow and 1.2B in operating cash flow. Earnings are translating into actual cash generation.
Debt-to-equity ratio of -6.64 indicates a conservative balance sheet with 3.0B in cash.
What to Watch Next
Margin expansion: can McKesson Corporation push profit margins above 15% as the business scales?
Sector dynamics: monitor MEDICAL DISTRIBUTION industry trends, competitive moves, and regulatory changes that could impact McKesson Corporation.
Bottom Line
McKesson Corporation offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About McKesson Corporation(MCK)
NYSE
HEALTHCARE
MEDICAL DISTRIBUTION
USA
McKesson Corporation is an American company distributing pharmaceuticals and providing health information technology, medical supplies, and care management tools.