McKesson Valuation
| MCK Stock | USD 623.19 5.08 0.81% |
At this time, the firm appears to be overvalued. McKesson secures a last-minute Real Value of $539.18 per share. The latest price of the firm is $623.19. Our model forecasts the value of McKesson from reviewing the firm fundamentals such as operating margin of 0.01 %, and Return On Asset of 0.0392 as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting McKesson's valuation include:
Price Book 5.0435 | Enterprise Value 83.8 B | Enterprise Value Ebitda 19.2773 | Price Sales 0.2396 | Forward PE 19.1571 |
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.
McKesson's intrinsic value may or may not be the same as its current market price of 623.19, 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 623.19 | Real 539.18 | Target 486.33 | Hype 623.47 | Naive 610.23 |
The intrinsic value of McKesson's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence McKesson's stock price.
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use McKesson's intrinsic value based on its ongoing forecasts of McKesson's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against McKesson's closest peers.
McKesson Cash |
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McKesson Valuation Trend
Knowing McKesson's actual value is paramount for traders when making sound investment determinations. Using both McKesson's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
McKesson Revenue by Product
McKesson Total Value Analysis
McKesson is now forecasted to have company total value of 83.82 B with market capitalization of 79.11 B, debt of 7.39 B, and cash on hands of 4.68 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the McKesson fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
83.82 B | 79.11 B | 7.39 B | 4.68 B |
McKesson Investor Information
About 89.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.29. McKesson recorded earning per share (EPS) of 19.32. The entity last dividend was issued on the 2nd of December 2024. The firm had 2:1 split on the 5th of January 1998. Based on the analysis of McKesson's profitability, liquidity, and operating efficiency, McKesson may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 2.4 B | 4.3 B |
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McKesson Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. McKesson has an asset utilization ratio of 458.09 percent. This suggests that the Company is making $4.58 for each dollar of assets. An increasing asset utilization means that McKesson is more efficient with each dollar of assets it utilizes for everyday operations.McKesson Ownership Allocation
McKesson maintains a total of 126.94 Million outstanding shares. The majority of McKesson outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in McKesson to benefit from reduced commissions. Accordingly, institutional holders are subject to a different set of regulations than regular investors in McKesson. Please pay attention to any change in the institutional holdings of McKesson as this could imply that something significant has changed or is about to change at the company. Please note that on November 8, 2024, Representative Byron Donalds of US Congress acquired under $15k worth of McKesson's common stock.McKesson Profitability Analysis
The company reported the last year's revenue of 308.95 B. Total Income to common stockholders was 3 B with profit before taxes, overhead, and interest of 12.36 B.McKesson Past Distributions to stockholders
About McKesson Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of McKesson. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of McKesson based exclusively on its fundamental and basic technical indicators. By analyzing McKesson's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of McKesson's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of McKesson. We calculate exposure to McKesson's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of McKesson's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 12.2 B | 7.2 B | |
| Pretax Profit Margin | 0.01 | 0.01 | |
| Operating Profit Margin | 0.01 | 0.01 | |
| Net Profit Margin | 0.01 | 0.01 | |
| Gross Profit Margin | 0.04 | 0.06 |
McKesson Quarterly Retained Earnings |
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A single share of McKesson represents a small ownership stake in the entity. As a stockholder of McKesson, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
McKesson Dividends Analysis For Valuation
The value of Dividends Paid is estimated to slide to about 173.1 M. The value of Dividend Yield is estimated to slide to 0. At this time, McKesson's Earnings Yield is quite stable compared to the past year. Price Earnings Ratio is expected to rise to 43.70 this year, although the value of Retained Earnings will most likely fall to about 7.5 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 314 M | 173.1 M | |
| Dividend Payout Ratio | 0.10 | 0.10 | |
| Dividend Paid And Capex Coverage Ratio | 4.31 | 2.94 |
There are various types of dividends McKesson can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of McKesson shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from McKesson directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When McKesson pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of McKesson by the value of the dividends paid out.
McKesson Growth Indicators
Investing in growth stocks can be very risky. If the company such as McKesson does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 134.1 M | |
| Quarterly Earnings Growth Y O Y | -0.62 | |
| Forward Price Earnings | 19.1571 |
McKesson Current Valuation Indicators
McKesson's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final McKesson's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as McKesson, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use McKesson's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes McKesson's worth.When determining whether McKesson is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if McKesson Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Mckesson Stock. Highlighted below are key reports to facilitate an investment decision about Mckesson Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in McKesson. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. For more information on how to buy McKesson Stock please use our How to buy in McKesson Stock guide.You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Is Health Care Providers & Services space 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 (0.62) | Dividend Share 2.57 | Earnings Share 19.32 | Revenue Per Share 2.5 K | Quarterly Revenue Growth 0.213 |
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.