What Is MCK Fair Value?
McKesson Corporation (MCK) fair value estimate using multiple valuation models, updated daily.
As of July 16, 2026, McKesson Corporation (MCK) has a composite fair value estimate of $1,867.24 based on four valuation models: DCF (47% weight), Graham Number (0% weight), PEG (33% weight), and DDM (20% weight). The current market price is $796.35, suggesting the stock is undervalued by 134.5%.
Data as of July 16, 2026 (today)
Composite Fair Value
Undervalued3 of 4 models$1,867.24
vs. current price of $796.35(+134.5%)
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 →
$2,913.75
+265.9%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 →
$345.16
-56.7%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.
$595.49
-25.2%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 $796.35 is 265.9% below this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $6.42B | $6.05B |
| Year 2 | $7.28B | $6.48B |
| Year 3 | $8.26B | $6.93B |
| Year 4 | $9.37B | $7.42B |
| Year 5 | $10.64B | $7.93B |
| Year 6 | $12.07B | $8.49B |
| Year 7 | $13.69B | $9.08B |
| Year 8 | $15.53B | $9.72B |
| Year 9 | $17.62B | $10.40B |
| Year 10 | $19.99B | $11.13B |
| Terminal Value | $579.55B | $322.52B |
What Are MCK's Key Financial Metrics?
Earnings & Growth
Current Price
$796.35
EPS (TTM)
$38.07
Forward P/E
15.8
Profit Margin
1.2%
Cash & Balance Sheet
Free Cash Flow
5.7B
EBITDA
6.9B
Book Value
-$18.10
Total Debt
8.8B
What Do Analysts Say About MCK?
Low
$812.00
Average
$940.73
High
$1,065.00
Upside
+18.1%
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 $1,867.24. The stock is currently trading at $796.35, 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 $796.35 is 134.5% below our estimated fair value of $1,867.24.
What do Wall Street analysts say about MCK?
15 analysts cover McKesson Corporation with a consensus rating of "Strong Buy." The average price target is $940.73, ranging from $812.00 to $1,065.00. This implies 18.1% upside from the current price.