What Is MCK Fair Value?
McKesson Corporation (MCK) fair value estimate using multiple valuation models, updated daily.
As of August 29, 2026, McKesson Corporation (MCK) has a composite fair value estimate of $2,297.47 based on four valuation models: DCF (47% weight), Graham Number (0% weight), PEG (33% weight), and DDM (20% weight). The current market price is $893.39, suggesting the stock is undervalued by 157.2%.
Data as of August 29, 2026 (today)
Composite Fair Value
Undervalued3 of 4 models$2,297.47
vs. current price of $893.39(+157.2%)
How Is MCK Fair Value Calculated?
Four independent models estimate what MCK is worth. Each uses different inputs and assumptions. The composite blends them by weight.
MCK Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
47% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$3,669.39
+310.7%Undervalued
Inputs used
DDM (Dividend Discount Model)
20% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
$395.51
-55.7%Overvalued
Inputs used
MCK Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
0% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
N/A
Requires positive EPS and book value. McKesson Corporation currently has negative earnings, so the Graham formula cannot be applied.
Inputs used
PEG (Price/Earnings to Growth)
33% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$611.39
-31.6%Overvalued
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $893.39 is 310.7% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $7.73B | $7.30B |
| Year 2 | $8.79B | $7.83B |
| Year 3 | $10.00B | $8.40B |
| Year 4 | $11.37B | $9.02B |
| Year 5 | $12.92B | $9.68B |
| Year 6 | $14.69B | $10.38B |
| Year 7 | $16.71B | $11.14B |
| Year 8 | $19.00B | $11.95B |
| Year 9 | $21.60B | $12.83B |
| Year 10 | $24.56B | $13.76B |
| Terminal Value | $727.35B | $407.65B |
What Are MCK's Key Financial Metrics?
Earnings & Growth
Current Price
$893.39
EPS (TTM)
$37.43
Forward P/E
17.7
Profit Margin
1.1%
Cash & Balance Sheet
Free Cash Flow
6.8B
EBITDA
7.1B
Book Value
-$36.55
Total Debt
11.8B
What Do Analysts Say About MCK?
Low
$845.00
Average
$986.94
High
$1,080.00
Upside
+10.5%
MCK Fair Value FAQ
What is the fair value of MCK?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), MCK's estimated fair value is $2,297.47. The stock is currently trading at $893.39, which makes it undervalued by our analysis.
How is MCK's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is MCK overvalued or undervalued?
Based on our analysis, MCK is undervalued. The current price of $893.39 is 157.2% below our estimated fair value of $2,297.47.
What do Wall Street analysts say about MCK?
16 analysts cover McKesson Corporation with a consensus rating of "Buy." The average price target is $986.94, ranging from $845.00 to $1,080.00. This implies 10.5% upside from the current price.