Mckesson Corp banner

Mckesson Corp
NYSE:MCK

Watchlist Manager
Mckesson Corp Logo
Mckesson Corp
NYSE:MCK
Watchlist
Price: 829.23 USD -1.55% Market Closed
Market Cap: $101.6B

EV/OCF

9.9
Current
29%
Cheaper
vs 3-y average of 14

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.

EV/OCF
9.9
=
Enterprise Value
$120B
/
Operating Cash Flow
$10.5B

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.

EV/OCF
9.9
=
Enterprise Value
$120B
/
Operating Cash Flow
$10.5B

Valuation Scenarios

Mckesson Corp is trading below its 3-year average

If EV/OCF returns to its 3-Year Average (14), the stock would be worth $1 171.11 (41% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+89%
Average Upside
54%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 9.9 $829.23
0%
3-Year Average 14 $1 171.11
+41%
5-Year Average 11.8 $985.65
+19%
Industry Average 18.7 $1 566.01
+89%
Country Average 16.7 $1 398.67
+69%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close

Market Distribution

Lower than 78% of companies in the United States of America
Percentile
22st
Based on 9 518 companies
22st percentile
9.9
Low
0 — 11.7
Typical Range
11.7 — 23.6
High
23.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 11.7
Median 16.7
70th Percentile 23.6
Max 3 178 983.5

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.

MCK Intrinsic Value
1 198.95 USD
Undervaluation 31%
Intrinsic Value
Price $829.23
Get AI-powered insights for any company or topic.
Open AI Assistant

Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.

Warren Buffett