MCK McKesson Corporation
Intrinsic value$631.23
Price (at call)$899.56
Margin of safety
-29.8%
vs market (rating basis)
+38.7%
Model unavailable; showing baseline valuation.
⚠ LLM error: unbalanced JSON in response: '{\n "story": "McKesson is one of three toll-takers moving roughly a third of North American pharmaceutical volume at 1-2% operating margins; the moat is scale, payer/pharmacy switching friction, and'; using baseline
The story
Value drivers
| Revenue growth (Y1) | 13.4% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 1.6% |
| Years to target margin | 5 |
| Sales-to-capital | 5.00 |
| Beta | 0.50 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 7.1% |
| Terminal WACC | 9.3% |
Valuation bridge
| PV of explicit FCFF | -8.83B |
| PV of terminal value | 86.32B |
| Equity value | 73.60B |
| ÷ shares → per share | $631.23 |
News
neutral -0.10 · 8 articles
- Did McKesson’s (MCK) EPS Hike and Oncology Push Just Redefine Its Investment Narrative?
- AbbVie vs. CRISPR Therapeutics: Which Healthcare Stock Is a Better Buy in 2026?
- McKesson Raises Outlook, Eyes Oncology Growth With Precision Medicine Deal
- Amgen vs. Vertex Pharmaceuticals: Which Healthcare Stock Is a Better Buy in 2026?
- CAH Gains More Than 29% in 4 Months: Will the Uptrend Continue?
- Amgen vs. Revolution Medicines: Which Healthcare Stock Is a Better Buy in 2026?
- Amgen vs. CRISPR Therapeutics: Which Healthcare Stock Is a Better Buy in 2026?
- McKesson (MCK) Suffers a Larger Drop Than the General Market: Key Insights
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 466.02B | 13.4% | 1.6% | 6.28B | 11.01B | -4.73B | -4.41B |
| 2 | 523.31B | 12.3% | 1.6% | 7.05B | 11.46B | -4.41B | -3.84B |
| 3 | 581.88B | 11.2% | 1.6% | 7.84B | 11.72B | -3.88B | -3.15B |
| 4 | 640.62B | 10.1% | 1.6% | 8.63B | 11.75B | -3.12B | -2.37B |
| 5 | 698.24B | 9.0% | 1.6% | 9.41B | 11.53B | -2.12B | -1.50B |
| 6 | 753.38B | 7.9% | 1.6% | 10.15B | 11.03B | -878.03M | -580.68M |
| 7 | 804.59B | 6.8% | 1.6% | 10.84B | 10.24B | 597.11M | 368.59M |
| 8 | 850.43B | 5.7% | 1.6% | 11.46B | 9.17B | 2.29B | 1.32B |
| 9 | 889.54B | 4.6% | 1.6% | 11.98B | 7.82B | 4.16B | 2.24B |
| 10 | 920.68B | 3.5% | 1.6% | 12.40B | 6.23B | 6.18B | 3.10B |