Mckesson Corp
NYSE:MCK
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EV/GP
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.
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.
Valuation Scenarios
If EV/GP returns to its 3-Year Average (5.9), the stock would be worth $658.48 (20% downside from current price).
| 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%
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| Industry Average | 5.2 | $570.64 |
-31%
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| Country Average | 6.5 | $721.44 |
-12%
|
Forward EV/GP
Today’s price vs future gross profit
Peer Comparison
| Market Cap | EV/GP | P/E | ||||
|---|---|---|---|---|---|---|
| US |
|
Mckesson Corp
NYSE:MCK
|
101.2B USD | 7.4 | 23.3 | |
| US |
A
|
Amerisourcebergen Corp
LSE:0HF3
|
60.7B USD | 5.6 | 37.4 | |
| US |
|
Cencora Inc
NYSE:COR
|
60.6B USD | 5.6 | 37.3 | |
| US |
|
Cardinal Health Inc
NYSE:CAH
|
47.9B USD | 5.9 | 28.8 | |
| AU |
|
Sigma Healthcare Ltd
ASX:SIG
|
32B AUD | 13.7 | 35.1 | |
| CN |
|
Shanghai Pharmaceuticals Holding Co Ltd
SSE:601607
|
62.8B CNY | 2.5 | 11 | |
| US |
|
Henry Schein Inc
NASDAQ:HSIC
|
8.5B USD | 2.8 | 21.5 | |
| CN |
|
Huadong Medicine Co Ltd
SZSE:000963
|
59.2B CNY | 5.2 | 20.9 | |
| KR |
|
Celltrion Healthcare Co Ltd
KOSDAQ:091990
|
12.2T KRW | 19.4 | 89.6 | |
| CN |
|
Sinopharm Group Co Ltd
HKEX:1099
|
57.5B HKD | 0.2 | 7.2 | |
| DE |
M
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McKesson Europe AG
XHAM:CLS1
|
5B EUR | 2.5 | -5.1 |
Market Distribution
| Min | 0 |
| 30th Percentile | 4.2 |
| Median | 6.5 |
| 70th Percentile | 10.6 |
| Max | 1 764 211.7 |
Other Multiples
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.