Latest Ratios: P/E Ratio 20.4x · EV/EBITDA 13.8x · ROE N/A. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $94.3B | $107.4B | $86.2B | $72.0B | $50.6B | $47.2B | $31.3B | $24.6B | $23.1B | $29.4B | $33.1B |
| Enterprise Value | $98.9B | $112.0B | $87.9B | $74.8B | $53.2B | $51.2B | $34.5B | $30.0B | $27.7B | $34.6B | $38.8B |
| P/E Ratio → | 20.43 | 22.55 | 26.17 | 23.98 | 14.22 | 42.34 | — | 27.33 | 688.59 | 440.22 | 6.52 |
| P/S Ratio | 0.23 | 0.27 | 0.24 | 0.23 | 0.18 | 0.18 | 0.13 | 0.11 | 0.11 | 0.14 | 0.17 |
| P/B Ratio | — | — | — | — | — | — | 21.66 | 3.67 | 2.39 | 2.56 | 2.62 |
| P/FCF | 16.48 | 18.78 | 16.50 | 19.85 | 11.00 | 12.10 | 8.03 | 6.36 | 6.64 | 7.82 | 7.91 |
| P/OCF | 15.32 | 17.45 | 14.17 | 16.69 | 9.81 | 10.64 | 6.90 | 5.63 | 5.72 | 6.78 | 6.97 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.28 | 0.24 | 0.24 | 0.19 | 0.19 | 0.14 | 0.13 | 0.13 | 0.17 | 0.20 |
| EV / EBITDA | 13.77 | 15.60 | 17.55 | 16.40 | 10.03 | 13.74 | 7.28 | 7.63 | 6.88 | 8.95 | 9.10 |
| EV / EBIT | 15.32 | 17.36 | 19.05 | 18.55 | 10.92 | 24.30 | — | 21.54 | 31.70 | 66.38 | 5.39 |
| EV / FCF | — | 19.59 | 16.82 | 20.62 | 11.57 | 13.13 | 8.83 | 7.76 | 7.96 | 9.20 | 9.28 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 3.6% | 3.6% | 3.5% | 3.9% | 4.3% | 4.8% | 4.9% | 4.9% | 5.0% | 5.0% | 5.4% |
| Operating Margin | 1.6% | 1.6% | 1.2% | 1.3% | 1.6% | 1.0% | 1.5% | 1.3% | 1.4% | 1.4% | 1.7% |
| Net Profit Margin | 1.2% | 1.2% | 0.9% | 1.0% | 1.3% | 0.4% | -1.9% | 0.4% | 0.0% | 0.0% | 2.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | — | — | — | — | — | — | -111.3% | 11.0% | 0.3% | 0.6% | 45.0% |
| ROA | 6.0% | 6.0% | 4.6% | 4.6% | 5.7% | 1.7% | -7.2% | 1.5% | 0.1% | 0.1% | 8.8% |
| ROIC | 254.1% | 254.1% | 540.6% | 252.3% | 199.7% | 60.1% | 31.6% | 17.1% | 14.9% | 12.5% | 15.3% |
| ROCE | 44.8% | 44.8% | 30.5% | 26.7% | 30.5% | 15.2% | 17.8% | 14.8% | 13.5% | 11.9% | 14.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | — | — | — | — | 6.50 | 1.40 | 0.78 | 0.68 | 0.68 |
| Debt / EBITDA | 1.20 | 1.20 | 1.48 | 1.62 | 1.37 | 2.03 | 1.99 | 2.39 | 1.89 | 2.04 | 2.00 |
| Net Debt / Equity | — | — | — | — | — | — | 2.16 | 0.80 | 0.48 | 0.45 | 0.46 |
| Net Debt / EBITDA | 0.65 | 0.65 | 0.34 | 0.62 | 0.49 | 1.08 | 0.66 | 1.37 | 1.15 | 1.35 | 1.35 |
| Debt / FCF | — | 0.81 | 0.33 | 0.77 | 0.57 | 1.03 | 0.80 | 1.39 | 1.33 | 1.38 | 1.38 |
| Interest Coverage | 26.13 | 26.13 | 18.03 | 16.59 | 19.67 | 11.83 | -22.20 | 5.59 | 3.31 | 1.84 | 23.37 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.85 | 0.85 | 0.90 | 0.92 | 0.92 | 0.95 | 1.03 | 0.99 | 1.02 | 1.01 | 1.04 |
| Quick Ratio | 0.49 | 0.49 | 0.53 | 0.51 | 0.51 | 0.57 | 0.59 | 0.60 | 0.58 | 0.57 | 0.61 |
| Cash Ratio | 0.06 | 0.06 | 0.09 | 0.09 | 0.10 | 0.07 | 0.14 | 0.09 | 0.08 | 0.07 | 0.08 |
| Asset Turnover | — | 4.90 | 4.78 | 4.58 | 4.44 | 4.17 | 3.66 | 3.77 | 3.59 | 3.45 | 3.26 |
| Inventory Turnover | 16.06 | 16.06 | 15.07 | 14.04 | 13.45 | 13.44 | 11.78 | 13.13 | 12.18 | 12.14 | 12.30 |
| Days Sales Outstanding | — | 25.32 | 26.07 | 25.54 | 25.60 | 25.70 | 29.39 | 31.52 | 31.07 | 31.03 | 33.49 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.4% | 0.4% | 0.4% | 0.4% | 0.6% | 0.6% | 0.9% | 1.2% | 1.3% | 0.9% | 0.8% |
| Payout Ratio | 8.0% | 8.0% | 10.5% | 10.5% | 8.2% | 24.9% | — | 32.7% | 858.8% | 391.0% | 4.9% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.9% | 4.4% | 3.8% | 4.2% | 7.0% | 2.4% | — | 3.7% | 0.1% | 0.2% | 15.3% |
| FCF Yield | 6.1% | 5.3% | 6.1% | 5.0% | 9.1% | 8.3% | 12.5% | 15.7% | 15.1% | 12.8% | 12.6% |
| Buyback Yield | 5.0% | 4.4% | 3.6% | 4.2% | 7.2% | 7.5% | 2.4% | 7.9% | 7.1% | 5.8% | 7.0% |
| Total Shareholder Yield | 5.4% | 4.8% | 4.0% | 4.6% | 7.8% | 8.0% | 3.3% | 9.1% | 8.4% | 6.7% | 7.8% |
| Shares Outstanding | — | $124M | $128M | $134M | $142M | $154M | $161M | $182M | $197M | $209M | $223M |
Regulatory drug pricing reform
According to current market data, McKesson trades at a forward P/E of 17.25, suggesting that investors are pricing the firm as a mature logistics utility rather than a high-growth technology provider, despite the company's strategic pivot toward higher-margin specialty pharmacy and biopharma services segments.
The current EV/EBITDA multiple of 13.42 indicates a valuation premium relative to its historical baseline, likely reflecting market optimism regarding the US Oncology Network's long-term growth potential. However, this valuation appears to be constrained by the massive, low-margin distribution business, which may be masking the underlying value of the higher-margin RxTS segment.
Based on reported figures, McKesson's ROIC has demonstrated significant volatility, ranging from 12.9% to 39.9% over the last ten quarters, which suggests that the company's ability to compound capital is highly sensitive to the timing of large-scale acquisitions and the inherent fluctuations in pharmaceutical inventory pricing.
The wide variance in ROIC highlights the difficulty in maintaining consistent returns within a capital-intensive distribution model. Investors should monitor whether the recent focus on specialty oncology assets can stabilize these returns at the higher end of the historical range, as the current volatility may indicate inconsistent capital deployment efficiency.
As reported in financial statements, McKesson maintains a negative cash conversion cycle, consistently ranging between -3 and -8 days, which demonstrates the company's significant procurement leverage over suppliers and its ability to monetize inventory before the corresponding payment obligations to manufacturers become due.
This negative CCC is a structural necessity for a business operating on razor-thin margins, as it effectively turns the company's working capital into a source of interest-free financing. Any disruption in this cycle, such as a shift in supplier payment terms or inventory turnover, could immediately strain the company's liquidity position.
The most commonly misapplied metric for McKesson is the Price-to-Sales ratio, which, at 0.23, obscures the company's true economic value by treating the gross value of pharmaceutical distribution as equivalent to the value-added service fees that actually drive the firm's underlying profitability and cash flow generation.
Because the company acts as a high-throughput intermediary, top-line revenue is largely a function of drug pricing rather than operational success. Analysts should instead prioritize metrics like EV/EBITDA or segment-specific operating margins to better capture the value of the company's specialized service offerings and technology platforms.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MCK stock.
McKesson Corporation's current P/E ratio is 20.4x. The historical average is 21.7x. This places it at the 54th percentile of its historical range.
McKesson Corporation's current EV/EBITDA is 13.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.
Based on historical data, McKesson Corporation is trading at a P/E of 20.4x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
McKesson Corporation's current dividend yield is 0.39% with a payout ratio of 8.0%.
McKesson Corporation has 3.6% gross margin and 1.6% operating margin.
McKesson Corporation's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.