Mckesson Stock Current Valuation
| MCK Stock | USD 536.09 7.21 1.33% |
Valuation analysis of McKesson helps investors to measure McKesson's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At this time, McKesson's Enterprise Value Over EBITDA is quite stable compared to the past year. Enterprise Value Multiple is expected to rise to 17.62 this year, although Enterprise Value will most likely fall to about 1.7 B. Fundamental drivers impacting McKesson's valuation include:
Price Book 5.0435 | Enterprise Value 77.4 B | Enterprise Value Ebitda 16.7539 | Price Sales 0.2279 | Forward PE 16.8634 |
Overvalued
Today
Please note that McKesson's price fluctuation is very steady at this time. Calculation of the real value of McKesson is based on 3 months time horizon. Increasing McKesson's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for McKesson is useful when determining the fair value of the McKesson stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of McKesson. Since McKesson is currently traded on the exchange, buyers and sellers on that exchange determine the market value of McKesson Stock. However, McKesson's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 536.09 | Real 490.12 | Target 486.33 | Hype 544.07 | Naive 550.96 |
The real value of McKesson Stock, also known as its intrinsic value, is the underlying worth of McKesson Company, which is reflected in its stock price. It is based on McKesson's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of McKesson's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence McKesson's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of McKesson helps investors to forecast how McKesson stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of McKesson more accurately as focusing exclusively on McKesson's fundamentals will not take into account other important factors: McKesson Company Current Valuation Analysis
McKesson's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current McKesson Current Valuation | 77.42 B |
Most of McKesson's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, McKesson is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
McKesson Current Valuation Driver Correlations
Understanding the fundamental principles of building solid financial models for McKesson is extremely important. It helps to project a fair market value of McKesson Stock properly, considering its historical fundamentals such as Current Valuation. Since McKesson's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of McKesson's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of McKesson's interrelated accounts and indicators.
Click cells to compare fundamentals
McKesson Current Valuation Historical Pattern
Today, most investors in McKesson Stock are looking for potential investment opportunities by analyzing not only static indicators but also various McKesson's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of McKesson current valuation as a starting point in their analysis.
McKesson Current Valuation |
| Timeline |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, McKesson has a Current Valuation of 77.42 B. This is much higher than that of the Health Care Providers & Services sector and significantly higher than that of the Health Care industry. The current valuation for all United States stocks is significantly lower than that of the firm.
McKesson Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses McKesson's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of McKesson could also be used in its relative valuation, which is a method of valuing McKesson by comparing valuation metrics of similar companies.McKesson is currently under evaluation in current valuation category among related companies.
McKesson ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, McKesson's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to McKesson's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
McKesson Fundamentals
| Return On Asset | 0.0363 | ||||
| Profit Margin | 0.01 % | ||||
| Operating Margin | 0.01 % | ||||
| Current Valuation | 77.42 B | ||||
| Shares Outstanding | 131.41 M | ||||
| Shares Owned By Insiders | 0.06 % | ||||
| Shares Owned By Institutions | 88.43 % | ||||
| Number Of Shares Shorted | 1.38 M | ||||
| Price To Earning | 26.98 X | ||||
| Price To Book | 5.04 X | ||||
| Price To Sales | 0.23 X | ||||
| Revenue | 276.71 B | ||||
| Gross Profit | 12.36 B | ||||
| EBITDA | 5.69 B | ||||
| Net Income | 3.72 B | ||||
| Cash And Equivalents | 4.68 B | ||||
| Cash Per Share | 20.57 X | ||||
| Total Debt | 7.29 B | ||||
| Debt To Equity | 6.61 % | ||||
| Current Ratio | 0.96 X | ||||
| Book Value Per Share | (15.62) X | ||||
| Cash Flow From Operations | 5.16 B | ||||
| Short Ratio | 2.66 X | ||||
| Earnings Per Share | 22.11 X | ||||
| Price To Earnings To Growth | 4.96 X | ||||
| Target Price | 571.56 | ||||
| Number Of Employees | 45 K | ||||
| Beta | 0.45 | ||||
| Market Capitalization | 71.39 B | ||||
| Total Asset | 62.32 B | ||||
| Retained Earnings | 12.29 B | ||||
| Working Capital | (3.67 B) | ||||
| Current Asset | 10.7 B | ||||
| Current Liabilities | 7.59 B | ||||
| Annual Yield | 0 % | ||||
| Five Year Return | 0.95 % | ||||
| Net Asset | 62.32 B | ||||
| Last Dividend Paid | 2.32 |
About McKesson Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze McKesson's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of McKesson using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of McKesson based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Try AI Portfolio ArchitectCheck out McKesson Piotroski F Score and McKesson Altman Z Score analysis. For more information on how to buy McKesson Stock please use our How to buy in McKesson Stock guide.Note that the McKesson information on this page should be used as a complementary analysis to other McKesson's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Complementary Tools for McKesson Stock analysis
When running McKesson's price analysis, check to measure McKesson's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy McKesson is operating at the current time. Most of McKesson's value examination focuses on studying past and present price action to predict the probability of McKesson's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move McKesson's price. Additionally, you may evaluate how the addition of McKesson to your portfolios can decrease your overall portfolio volatility.
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Is McKesson's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of McKesson. If investors know McKesson will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about McKesson listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.42) | Dividend Share 2.32 | Earnings Share 22.11 | Revenue Per Share 2.2 K | Quarterly Revenue Growth 0.148 |
The market value of McKesson is measured differently than its book value, which is the value of McKesson that is recorded on the company's balance sheet. Investors also form their own opinion of McKesson's value that differs from its market value or its book value, called intrinsic value, which is McKesson's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because McKesson's market value can be influenced by many factors that don't directly affect McKesson's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between McKesson's value and its price as these two are different measures arrived at by different means. Investors typically determine if McKesson is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, McKesson's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.