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Mckesson Corp
NYSE:MCK

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Mckesson Corp
NYSE:MCK
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Price: 822.63 USD -1.48% Market Closed
Market Cap: $100.8B

EV/GP

7.4
Current
25%
More Expensive
vs 3-y average of 5.9

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
7.4
=
Enterprise Value
$120B
/
Gross Profit
$13.9B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
7.4
=
Enterprise Value
$120B
/
Gross Profit
$13.9B

Valuation Scenarios

Mckesson Corp is trading above its 3-year average

If EV/GP returns to its 3-Year Average (5.9), the stock would be worth $658.48 (20% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-36%
Maximum Upside
No Upside Scenarios
Average Downside
25%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 7.4 $822.63
0%
3-Year Average 5.9 $658.48
-20%
5-Year Average 4.8 $527.86
-36%
Industry Average 5.2 $570.64
-31%
Country Average 6.5 $721.44
-12%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
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Market Distribution

In line with most companies in the United States of America
Percentile
55th
Based on 9 428 companies
55th percentile
7.4
Low
0 — 4.2
Typical Range
4.2 — 10.6
High
10.6 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 4.2
Median 6.5
70th Percentile 10.6
Max 1 764 211.7

Mckesson Corp
Glance View

McKesson Corporation, with its roots tracing back to 1833, stands as a healthcare titan in the pharmaceutical industry. Founded by John McKesson and Charles Olcott in New York City, the company began its journey as an importer and wholesaler of botanical drugs. McKesson has since evolved into one of the largest healthcare companies in the world, delivering critical logistics and distribution services that underpin the healthcare sector. The company's primary role is that of an intermediary, ensuring that pharmaceutical products and medical supplies make their way efficiently from manufacturers to pharmacies, hospitals, and clinics. This pivotal position places McKesson at the heart of the supply chain, making health products more accessible and affordable across North America and beyond. The operational mechanics of McKesson are a complex yet seamless orchestration of advanced logistics, technology, and customer service. By maintaining a vast network of distribution centers, the corporation processes and ships millions of pharmaceutical products daily, ensuring they are delivered within stringent timeframes. Through its well-oiled logistics system, McKesson earns its revenue mainly from the margins on product sales and the fees it charges for its distribution services. Furthermore, the company has diversified into additional areas like healthcare technology solutions, offering software and automation systems that aid healthcare providers in managing their operations more effectively. In summary, McKesson remains an indispensable player in healthcare, translating logistical prowess into a streamlined flow of pharmaceuticals from production to patient care.

MCK Intrinsic Value
1 198.95 USD
Undervaluation 31%
Intrinsic Value
Price $822.63
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