What is McKesson Corp worth?
With the base-case assumptions below, a discounted cash flow model on McKesson Corp's reported free cash flow gives $1,186.10 per share. The share price was $1,082.59 on November 10, 2026, 9% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 6.0% | 10.0% | $716.02 | -34% |
| Base | 11.0% | 9.0% | $1,186.10 | +10% |
| Bull | 16.0% | 8.0% | $2,062.64 | +91% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $1,534.58 | $1,642.29 | $1,773.94 | $1,938.50 | $2,150.08 |
| 8.0% | $1,273.52 | $1,343.37 | $1,425.92 | $1,524.98 | $1,646.06 |
| 9.0% | $1,083.23 | $1,130.99 | $1,186.10 | $1,250.39 | $1,326.37 |
| 10.0% | $938.67 | $972.63 | $1,011.12 | $1,055.11 | $1,105.87 |
| 11.0% | $825.32 | $850.22 | $878.05 | $909.35 | $944.83 |
Where the presets come from
Base: years 1 to 5 grow at McKesson Corp's revenue growth rate over the last 5 fiscal years (11.1% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions