What Is MCK Fair Value?
McKesson Corporation (MCK) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, McKesson Corporation (MCK) has a composite fair value estimate of $2,800.07 based on four valuation models: DCF (58% weight), Graham Number (0% weight), PEG (42% weight), and DDM (0% weight). The current market price is $976.57, suggesting the stock is undervalued by 186.7%.
Data as of October 14, 2026 (today)
Composite Fair Value
Undervalued2 of 4 models$2,800.07
vs. current price of $976.57(+186.7%)
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)
58% 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 →
$3,707.98
+279.7%Undervalued
Inputs used
DDM (Dividend Discount Model)
0% 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 →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
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)
42% 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.
$612.90
-37.2%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 $976.57 is 279.7% 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 | $8.80B | $7.84B |
| Year 3 | $10.00B | $8.41B |
| Year 4 | $11.37B | $9.03B |
| Year 5 | $12.94B | $9.70B |
| Year 6 | $14.71B | $10.41B |
| Year 7 | $16.73B | $11.17B |
| Year 8 | $19.02B | $12.00B |
| Year 9 | $21.63B | $12.88B |
| Year 10 | $24.60B | $13.82B |
| Terminal Value | $734.42B | $412.68B |
What Are MCK's Key Financial Metrics?
Earnings & Growth
Current Price
$976.57
EPS (TTM)
$37.31
Forward P/E
19.3
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
$986.15
High
$1,070.00
Upside
+1.0%
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 $2,800.07. The stock is currently trading at $976.57, 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 $976.57 is 186.7% below our estimated fair value of $2,800.07.
What do Wall Street analysts say about MCK?
13 analysts cover McKesson Corporation with a consensus rating of "Buy." The average price target is $986.15, ranging from $845.00 to $1,070.00. This implies 1.0% upside from the current price.