Market Pulse53Neutral

McKesson CorporationOpportunity Rank #105(MCK) Intrinsic Value & DCF Analysis (2026)

Sector: Healthcare

Current Price

$824.49

Last updated: Jul 24, 2026

Price vs Intrinsic Value

$824.49
Price
$943.58
Intrinsic Value
Undervalued by 14%MOS: $754.86

Fundamental Score

77/100
Bullish

Weighted across 6 signals

Narrative Score

63/100
Improving

No change vs previous

Trend Score

57/100
Constructive

As of 2026-07-24

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The intrinsic value of McKesson Corporation (MCK) is estimated at $943.58 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $824.49, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.36% long-term growth rate and an 8.50% discount rate (calculated: 7.38%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of McKesson Corporation (MCK) is estimated at $943.58 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $824.49, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 4.36% long-term growth rate and an 8.50% discount rate (calculated: 7.38%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$943.58
14.44% upside
20% margin of safety: $754.86
Years: 10Growth Rate: 4.36%
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Capital Efficiency

Average Quarterly ROIC
234.67%
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

77/100
BullishWeighted across 6 signals
DCF Discount
14.4% discount to price
74
FCF Yield
6.6% trailing FCF yield
100
ROIC vs WACC
ROIC 234.7% vs WACC 7.0% (33.5x)
100
Net Debt / FCF
0.4x net debt to FCF
92
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
4.2% 5Y FCF CAGR
25
Strengths: DCF Discount, FCF Yield. Concerns: FCF CAGR (5Y).

Narrative Details

63/100
Improving
Vs 6-Month Baseline:Average (54th pct)Weighted across 4 recent drivers
Trend: Improving upConfidence: 89%Updated: 1d ago
Sources: 36 (30 News · 6 Analyst)
Drivers(last 30 days)
2 regulatory scrutiny+0.9
27 news sentiment+0.3
Earnings beat+0.1
6 analyst reiterations0.0

Trend Details

57/100
ConstructiveAs of 2026-07-24310 daily bars used
Price vs 50 EMA+5.2%
Price vs 21 EMA+4.1%
Distance from 52-Week High-15.5%
Price vs 21 EMA73 · +4.1%
Price vs 50 EMA74 · +5.2%
21 EMA vs 50 EMA59 · +1.1%
3M RS vs SPY35 · -3.7%
6M RS vs SPY38 · -4.3%
Distance from 52W High69 · -15.5%

Investment Coach

Updating... 44d ago
BUYConfidence: 72%
Thesis
McKesson Corporation presents a compelling buy opportunity with a strong fundamental score of 79 and a valuation implying a 19.6% upside. Its ROIC significantly exceeds the cost of capital by 124.7 basis points, supported by a healthy free cash flow yield of 6.7%.
Key Risk
The key risk is a potential decline in ROIC below the cost of capital, which could undermine the company's profitability and valuation.
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: 4.36%5 Year CAGR: 4.22%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016201520142013201220112010200920082007
$6,374$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

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 is a prominent global provider of healthcare services, operating extensively in both the United States and international markets. Its diverse operations are strategically organized into four key business segments. The U.S. Pharmaceutical division plays a crucial role in the distribution of a comprehensive array of pharmaceutical products, encompassing branded, generic, specialty, biosimilar, and over-the-counter medications, alongside other health-related merchandise. This segment also delivers specialized support to community-based oncology and other specialty medical practices through practice management tools, technology solutions, clinical guidance, and broader business services. Furthermore, it assists pharmacies with consulting, outsourcing, and technology services, while also furnishing financial, operational, and clinical software solutions. Internationally, the company's dedicated segment provides distribution and support services to wholesale, institutional, and retail clients across 13 European nations and Canada. The Medical-Surgical Solutions unit is focused on supplying healthcare providers with essential medical-surgical products, sophisticated logistics management, and a variety of associated services. Finally, the Prescription Technology Solutions (RxTS) segment is designed to address complex medication challenges for patients. It collaborates with biopharmaceutical companies and life sciences partners to improve patient journeys, leveraging innovative solutions for medication access and adherence by connecting pharmacies, healthcare providers, payers, and biopharma entities. This segment further offers third-party logistics and wholesale distribution assistance. Founded in 1833, McKesson Corporation maintains its corporate headquarters in Irving, Texas.