Market Pulse50Neutral

McKesson CorporationOpportunity Rank #4(MCK) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$877.01

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$877.01
Price
$1,629.68
Intrinsic Value
Undervalued by 86%MOS: $1,303.74

Fundamental Score

97/100
Bullish

Weighted across 6 signals

Narrative Score

78/100
Strong

+6 vs previous

The intrinsic value of McKesson Corporation (MCK) is estimated at $1,629.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $877.01, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.62% long-term growth rate and an 8.50% discount rate (calculated: 7.50%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of McKesson Corporation (MCK) is estimated at $1,629.68 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $877.01, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.62% long-term growth rate and an 8.50% discount rate (calculated: 7.50%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$1,629.68
▲ 85.82% upside
20% margin of safety: $1,303.74
Years: 10Growth Rate: 4.62%
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Capital Efficiency

Average Quarterly ROIC
48.31%
Cost of Capital (estimated)7%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

97/100
BullishWeighted across 6 signals
DCF Discount
85.8% discount to price
100
FCF Yield
10.0% trailing FCF yield
100
ROIC vs WACC
ROIC 48.3% vs WACC 7.0% (6.9x)
100
Net Debt / FCF
0.3x net debt to FCF
93
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
17.4% 5Y FCF CAGR
100
Strengths lead the score: DCF Discount, FCF Yield.

Narrative Details

78/100
Strong
+6 vs previous · +1 new driversVs 6-Month Baseline:Above Avg (73rd pct)Weighted across 6 recent drivers
Trend: StableConfidence: 89%Updated: 1h ago
Sources: 81 (76 News · 5 Analyst)
Drivers(last 30 days)
27 regulatory scrutiny+1.4
46 news sentiment+0.9
Upgrade headlines+0.3
Margin pressure+0.2
Earnings beat+0.0
5 analyst reiterations0.0

Investment Coach

Updated 18h ago
BUYConfidence: 81%
Thesis
McKesson Corporation is significantly undervalued with an estimated fair value 88.9% above its current price, supported by a strong fundamental score of 97 and a ROIC that exceeds its cost of capital by 41.3 percentage points. The company demonstrates robust free cash flow growth and effective capital allocation through buybacks, underpinning a bullish investment outlook.
Key Risk
A key risk is the potential deterioration in the company's narrative score, which currently shows a downward trend despite being labeled as improving, possibly signaling emerging challenges.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Confirm ROIC stays above cost of capital over coming quarters.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 4.62%5 Year CAGR: 15.96%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$10,868$6,944$5,001$5,717$4,969$5,183$4,880$4,593$4,925$5,306$4,349$3,657$3,551$2,889$3,353$2,726$2,694$1,743$1,225$1,845$2,911

How Intrinziq Estimates Fair Value

Intrinziq estimates McKesson Corporation's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

McKesson CorporationHealthcare

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS). The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs and other healthcare-related products. This segment also provides practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices; and consulting, outsourcing, technological, and other services, as well as sells financial, operational, and clinical solutions to pharmacies. The International segment offers distribution and services to wholesale, institutional, and retail customers in 13 European countries and Canada. The Medical-Surgical Solutions segment provides medical-surgical supply distribution, logistics, and other services to healthcare providers. The RxTS segment serves biopharma and life sciences partners and patients to address medication challenges for patients throughout their journeys; connects pharmacies, providers, payers, and biopharma companies to deliver innovative access and adherence solutions; and provides third-party logistics and wholesale distribution support solutions. McKesson Corporation was founded in 1833 and is headquartered in Irving, Texas.