What is McKesson Corporation (MCK) DCF Fair Value and Intrinsic Value in 2026?

McKesson Corporation (MCK) intrinsic value is calculated using conservative multi-stage Discounted Cash Flow (DCF) models, 5-year free cash flow trajectories, Graham Numbers, and owner earnings multiples. LocalAlpha tracks real-time margin of safety against live market prices.

What is McKesson Corporation's historical Return on Invested Capital (ROIC) and Moat Rating?

McKesson Corporation operates in the Healthcare sector (Medical Distribution) with an economic moat rating of NARROW. LocalAlpha tracks 5-year audited quarterly ROIC, operating margin stability, and balance sheet solvency ratios.

What is McKesson Corporation's financial health rating and Piotroski F-Score?

McKesson Corporation's balance sheet quality is evaluated using the 9-point Piotroski F-Score, Altman Z-Score solvency model, debt-to-equity ratio, and quick/current liquidity coverage to guard against financial distress.

How does LocalAlpha monitor McKesson Corporation (MCK) for quarterly SEC filing thesis breaks?

LocalAlpha audits McKesson Corporation's 10-K, 10-Q, and 8-K regulatory filings on SEC EDGAR within 15 minutes of release. If reported metrics breach an investor's custom ROIC floor, operating margin boundary, or qualitative risk criteria, an autonomous breach audit is dispatched immediately.

StocksMCK

MCK

McKesson CorporationHealthcare / Medical DistributionINTACT

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products; delivers products to retail pharmacies, hospitals, long-term care centers, clinics, and institutions; and provides logistics and distribution services for manufacturers. It also provides consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies; gene therapy with InspiroGene, practice consulting, and vaccine distribution services; and technology solutions, as well as research, insights, technologies, and services to improve cancer and specialty care. In addition, the company helps in solving medication access, affordability, and adherence challenges for patients by working across healthcare to connect patients, pharmacies, providers, pharmacy benefit managers, health plans, and biopharma companies. Further, it offers technology services, which includes electronic prior authorization, prescription price transparency, benefit insight, dispensing support services, patient enrollment, third-party logistics, and wholesale distribution support; medical-surgical supplies, laboratory equipment, pharmaceutical distribution, logistics, and other services to healthcare providers, including physician offices, surgery centers, and hospital reference labs, nursing homes, hospice and home health care agencies, government facilities ,and online marketplaces and retailers. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.

Share Price

$880.86

52W: $687.68 - $999

DCF Fair Value

$1051.48

+16.2%

Thesis Hub

P/E (TTM)

23.9x

ROIC

Operating Margin

1.3%

FCF Yield

6.6%

Debt / Equity

0.65x

Piotroski Score

6/9

Altman Z-Score

8.67

Market Cap

$102.7B

Price vs. Intrinsic Value Corridor

Modest Value ($880.86 vs $1051.48 DCF)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)

—()

Period Range

$— - $—

DCF Fair Value

$1051.48

MOS Buy Target (-25%)

$788.61

Valuation Overlays: DCF Fair Value ($1051.48) 25% MOS Buy Target ($788.61) Revised Graham ($556.90)

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price

$880.86

DCF Fair Value

$1046.49

+15.8%

Starting Free Cash Flow ($M)$6,801M

$100M$6,801M (Reported)$50,000M

Stage 1 Growth (Years 1-5)5.3%

-5%10% (Target)35%

Stage 2 Growth (Years 6-10)4.5%

0%5%20%

Discount Rate (WACC / Hurdle)9.0%

6%9% (Standard)15% (High Risk)

Terminal Perpetual Growth2.5%

1% (GDP Floor)2.5% (Inflation)4.0%

Net Debt ($M)$6,600M

-$100B CashBalance Sheet+$150B Debt

10-Yr PV of Cash Flows

$56.0B

PV of Terminal Value

$73.1B

Implied Enterprise Value

$129.0B

Implied Equity Value

$122.4B

Year	Yr 1	Yr 2	Yr 3	Yr 4	Yr 5	Yr 6	Yr 7	Yr 8	Yr 9	Yr 10
Projected FCF ($M)	$7,161	$7,541	$7,941	$8,362	$8,805	$9,201	$9,615	$10,048	$10,500	$10,972
Present Value (PV)	$6,570	$6,347	$6,132	$5,924	$5,722	$5,486	$5,260	$5,043	$4,834	$4,635

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number

N/A

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

Not calculable here: the formula takes a square root of EPS × book value, so it breaks down when trailing earnings (or book value) are negative. A company losing money has no defensive-investor price under Graham's classic test — lean on the DCF and solvency scores instead.

EPS: $36.82BVPS: $-36.55

Revised Graham Formula-58.2% Premium

$556.90

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Growth Rate (g%)

Bond Yield (Y%)

Buffett Owner Earnings6.3% Yield

$55.22 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $6.5BYield: 6.3%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER

2.0% CAGR (Next 10 Yrs)

At the current price of $880.86, the market is assuming the business will compound Free Cash Flow at 2.0% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict

✓ Low market hurdle: Easy for a wide-moat compounder to beat.

Autonomous Thesis Underwriting

Surveil MCK with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for McKesson Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 1.3% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

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Frequently Asked Questions: McKesson Corporation (MCK) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for McKesson Corporation.

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, McKesson Corporation has an estimated DCF intrinsic fair value of $1051.48 per share compared to its current market price of $880.86. This represents an estimated 16.2% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $N/A.