Using the industry peer median P/E multiple (trailing + forward), McKesson Corporation (MCK) has a fair value of $731.09 based on 8 comparable companies in the Medical - Distribution industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| McKesson CorporationMCK | 111,247 | 33.8x | 22.3x |
| Stryker CorporationSYK | 127,271 | 39.6x | 22.2x |
| Bristol-Myers Squibb CompanyBMY | 121,119 | 17.2x | 9.5x |
| Vertex Pharmaceuticals IncorporatedVRTX | 115,820 | 29.8x | 23.6x |
| Medtronic plcMDT | 113,213 | 24.4x | 15.6x |
| HCA Healthcare, Inc.HCA | 108,040 | 17.0x | 16.0x |
| CVS Health CorporationCVS | 91,014 | 51.5x | 10.0x |
| Cencora, Inc.COR | 61,941 | 40.0x | 18.1x |
| Cardinal Health, Inc.CAH | 49,047 | 32.3x | 20.2x |
| Industry Median | 31.0x | 17.0x | |
| (*) Profit after tax | 3,295 | 4,998 | |
| Equity Value | 102,275 | 85,032 | |
| (/) Outstanding shares | 128 | 128 | |
| Fair Price | $798 | $664 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.