Mckesson Corporation partners with payers, hospitals, physician offices, pharmacies, pharmaceutical companies and others across the spectrum of care to build healthier organizations that deliver better care to patients in every setting. McKesson helps its customers improve their financial, operational, and clinical performance with solutions that include pharmaceutical and medical-surgical supply management, healthcare information technology, and business and clinical services. The company was founded in 1833 and is based in San Francisco, California.
MCK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MCK, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Mckesson Corp ranked in the 44th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for MCK, they are:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.03% -- higher than just 21.21% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 88.96% of its sector Healthcare.
Mckesson Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 13.47% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Mckesson Corp? See MEDP, DXCM, AMED, HBIO, and USPH.
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SAN FRANCISCO--(BUSINESS WIRE)--McKesson Ventures, the venture capital arm of McKesson Corporation, announces the expansion of its leadership team, promoting Jennifer Carter and Carrie Hurwitz Williams to partners of McKesson Ventures. The new partner roles exemplify McKesson Ventures’ growth since it was established in 2014. As partner, Carter and Williams will identify long-term strategic industry opportunities, invest in healthcare technology companies and build valuable partnerships with Mc
Good businesses will survive good times and bad times. − Theo Paphitis A global leader in the U.S. healthcare and pharmaceutical supply chain, McKesson Corporation (MCK) operates a low-margin, high-volume business. The company is expected to witness a solid rise in volumes in Q4 2020 because it has partnered with...
Michael A. Gayed, CFA on Seeking Alpha | September 7, 2020