McKesson Corporation (MCK) Valuation
Historical valuation analysis based on 1280 data points (2021-09-13 to 2026-10-16)
McKesson is one of three leading pharmaceutical wholesalers in the US engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, inde...
McKesson Corporation (MCK) currently trades at a P/E ratio of 25.51 (historical range: 14.66–39.07, median: 25.30), placing it at the 51th percentile — near its historical average, P/S ratio of 0.29 (range: 0.12–0.31, 95th percentile — expensive relative to its history), EV/EBITDA of 19.06 (range: 12.71–25.96, 46th percentile).
McKesson Corporation trades above its historical valuation range, with most metrics above their median levels.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 25.51 | 25.30 | 51th | near its historical average |
| P/S Ratio | 0.29 | 0.22 | 95th | expensive relative to its history |
| EV/EBITDA | 19.06 | 19.51 | 46th | near its historical average |
| FCF Yield | 5.48% | 7.35% | 31th | above its historical average |
McKesson Corporation (MCK) Valuation & P/E History
McKesson Corporation (MCK) is a US-listed stock operating in the Healthcare sector, specifically the Wholesale-Drugs, Proprietaries & Druggists' Sundries industry currently trading at $1004.84 with a market capitalization of $117.2 billion. This page provides historical valuation analysis for MCK based on 1280 data points covering 2021-09-13 to 2026-10-16. The P/E ratio of 25.51 is above the historical median of 25.30, placing MCK at the 51th percentile of its valuation range. The P/S ratio of 0.29 compares to a median of 0.22.
MCK Valuation Metrics & Historical Range
The valuation table above shows McKesson Corporation's current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether MCK is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests MCK is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for McKesson Corporation.
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is MCK Overvalued or Undervalued?
McKesson Corporation trades above its historical valuation range, with most metrics above their median levels. The overall valuation percentile of 64 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive MCK is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full MCK analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.MCK trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.