McKesson Corporation logo MCK - McKesson Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 1
BUY 24
HOLD 6
SELL 0
STRONG
SELL 0
| PRICE TARGET: $994.86 DETAILS
HIGH: $1,085.00
LOW: $875.00
MEDIAN: $970.00
CONSENSUS: $994.86
UPSIDE: 29.86%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild
Trading 4.0% below fair value
Current Price $766.08
Bear Case $638.38 16.7% downside ($638.38 - $766.08) / $766.08 = -16.7% $41.17 × 14x P/E
Fair Value $797.98 4.2% upside ($797.98 - $766.08) / $766.08 = 4.2% $41.17 × 17x P/E
Bull Case $957.57 25.0% upside ($957.57 - $766.08) / $766.08 = 25.0% $41.17 × 21x P/E

Adjust Assumptions

17.3x
41.17$

Key Value Driver

Normalized P/E multiple (17x base case)

Implied Market Multiple 18.6x

Plain-Language Summary

Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $994.86 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $797.98 per share.

Warnings

ℹ Wall Street's average price target is $994.86 (from 31 analysts). Our estimate is 28% below the consensus -- consider that gap carefully.

Key Risks

  • Growth DCF inappropriate — terminal value assumptions dominate
  • EV/EBITDA misleading for regulated businesses where capex is mandated
  • Regulatory risk is a fat tail not visible in normal multiples