Mckesson Corp
NYSE:MCK
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EV/OCF
Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.
Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.
Valuation Scenarios
If EV/OCF returns to its 3-Year Average (14), the stock would be worth $1 171.11 (41% upside from current price).
| Scenario | EV/OCF Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 9.9 | $829.23 |
0%
|
| 3-Year Average | 14 | $1 171.11 |
+41%
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| 5-Year Average | 11.8 | $985.65 |
+19%
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| Industry Average | 18.7 | $1 566.01 |
+89%
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| Country Average | 16.7 | $1 398.67 |
+69%
|
Forward EV/OCF
Today’s price vs future operating cash flow
Peer Comparison
| Market Cap | EV/OCF | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Mckesson Corp
NYSE:MCK
|
102B USD | 9.9 | 23.5 | |
| US |
A
|
Amerisourcebergen Corp
LSE:0HF3
|
62.9B USD | 16 | 38.7 | |
| US |
|
Cencora Inc
NYSE:COR
|
60B USD | 15.4 | 36.9 | |
| US |
|
Cardinal Health Inc
NYSE:CAH
|
47.3B USD | 8.7 | 28.5 | |
| AU |
|
Sigma Healthcare Ltd
ASX:SIG
|
32.4B AUD | 56.3 | 35.2 | |
| CN |
|
Shanghai Pharmaceuticals Holding Co Ltd
SSE:601607
|
62.9B CNY | 12.2 | 11 | |
| US |
|
Henry Schein Inc
NASDAQ:HSIC
|
9B USD | 16.8 | 22.7 | |
| CN |
|
Huadong Medicine Co Ltd
SZSE:000963
|
59.9B CNY | 15 | 16.2 | |
| KR |
|
Celltrion Healthcare Co Ltd
KOSDAQ:091990
|
12.2T KRW | -316.6 | 89.6 | |
| CN |
|
Sinopharm Group Co Ltd
HKEX:1099
|
61.9B HKD | 0.6 | 7.7 | |
| DE |
M
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McKesson Europe AG
XHAM:CLS1
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5B EUR | 12.5 | -5.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 11.7 |
| Median | 16.7 |
| 70th Percentile | 23.6 |
| Max | 3 178 983.5 |
Other Multiples
Mckesson Corp
Glance View
McKesson Corporation, with its roots tracing back to 1833, stands as a healthcare titan in the pharmaceutical industry. Founded by John McKesson and Charles Olcott in New York City, the company began its journey as an importer and wholesaler of botanical drugs. McKesson has since evolved into one of the largest healthcare companies in the world, delivering critical logistics and distribution services that underpin the healthcare sector. The company's primary role is that of an intermediary, ensuring that pharmaceutical products and medical supplies make their way efficiently from manufacturers to pharmacies, hospitals, and clinics. This pivotal position places McKesson at the heart of the supply chain, making health products more accessible and affordable across North America and beyond. The operational mechanics of McKesson are a complex yet seamless orchestration of advanced logistics, technology, and customer service. By maintaining a vast network of distribution centers, the corporation processes and ships millions of pharmaceutical products daily, ensuring they are delivered within stringent timeframes. Through its well-oiled logistics system, McKesson earns its revenue mainly from the margins on product sales and the fees it charges for its distribution services. Furthermore, the company has diversified into additional areas like healthcare technology solutions, offering software and automation systems that aid healthcare providers in managing their operations more effectively. In summary, McKesson remains an indispensable player in healthcare, translating logistical prowess into a streamlined flow of pharmaceuticals from production to patient care.