Stock fact sheet · data as of
McKesson Corporation (MCK): fair value, margin of safety and Wheel Score
Healthcare · Medical - Distribution · United States · Blend
Is MCK undervalued?
At 998.64 (close of 16 Oct 2026), MCK trades 20% over the GLS average fair value of 833.66. 4 of the 8 models land above the price and 4 below. A negative margin of safety costs Value points in the Wheel Score (4 of 25 here) - the models see no discount, which does not make the business a poor one, only the price a full one.
There is a wide gap between DDM (50.03) and Graham Growth (1,518.11). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files MCK under Blend.
Nine valuation models for MCK
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 1,069.60 | +7% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | 1,518.11 | +52% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 611.89 | -39% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 458.16 | -54% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 1,244.94 | +25% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 1,286.67 | +29% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 50.03 | -95% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 429.84 | -57% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -222.55 | -122% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 956.43 | -4% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
McKesson Corporation scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. On durability MCK scores 5.2/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 73.9%, ROE -219.2%, ROA 5.8% - with debt at -3.97 times equity and a free-cash-flow yield of 5.3%.
The dividend yield is 0.34% with a payout ratio of 9% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from North American Pharmaceutical 82%, Oncology And Multispecialty 14%, Medical Surgical Solutions 3% (quarter Q1 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 8/10 on the GLS smart-money scales; the last recorded Congressional buy was on 10 Aug 2026.
| Piotroski F-score | 7 / 9 | ROIC | 73.9% |
|---|---|---|---|
| GLS Moat | 5.2 / 10 | ROE | -219.2% |
| Debt / equity | -3.97 | ROA | 5.8% |
| Free-cash-flow yield | 5.3% | Payout ratio | 9% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 8 / 10 |
Wheel Score 65: Good
With a Wheel Score of 65 - the Good band - McKesson Corporation falls just short of the Sunday Scan's "70 or higher" rule. The parts: Value 4/25, Health 16/20, Moat 8/15, Premium 20/20, Stability 17/20; Value (4/25) scores lowest.
Implied volatility is 35% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 17,247 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 715k shares a day on a market cap of $116.4B, with a beta of 0.30 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 4 / 25 | -20% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 8 / 15 | moat 5.2/10 | |
| Premium | 20 / 20 | implied volatility 35% | |
| Stability | 17 / 20 | 715k shares/day, $116.4B cap, beta 0.30 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 4 Nov 2026 (after the close), 19 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Medical - Distribution
The 12 companies below are the closest to McKesson Corporation by market cap within the Medical - Distribution industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| COR Cencora, Inc. | 341.41 | 400.52 | +15% | 82Prime | $65.2B |
| CAH Cardinal Health, Inc. | 253.71 | 343.24 | +26% | 88Prime | $58.7B |
| HSIC Henry Schein, Inc. | 86.99 | 63.41 | -37% | 56Fair | $9.7B |
| AHG Akso Health Group | 1.35 | - | - | 29No options | $1.2B |
| YI 111, Inc. | 3.11 | - | - | 26No options | $27M |
| ACH Accendra Health, Inc. | 0.2615 | - | - | 36Weak | $20M |
| EXHI Exlites Holdings International, Inc. | 0.4500 | - | - | 26No options | $20M |
| MEDS DataMEDS AI, Inc. | 2.85 | - | - | 24No options | $7M |
| AIXN AiXin Life International, Inc. | 0.2600 | - | - | 27No options | $6M |
| PDRX PD-Rx Pharmaceuticals, Inc. | 3.10 | 6.80 | +54% | 29No options | $5M |
| HKPD Cellyan Biotechnology Co., Ltd | 0.1099 | 0.3564 | +69% | 39No options | $5M |
| RDGT Ridgetech, Inc. | 0.8402 | 312.83 | +100% | 39No options | $755K |
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Start free See the Sunday ScanQuestions about MCK
Is MCK undervalued right now?
No: at 998.64 the stock trades 20% above the GLS average fair value of 833.66 (data as of 16 Oct 2026). The margin of safety is negative.
What is the Wheel Score of MCK and what does it mean?
MCK scores 65 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for MCK?
833.66 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does McKesson Corporation report earnings next?
The next earnings report is due on 4 Nov 2026 (after the close), 19 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does MCK have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 17,247 open interest across all expiries and implied volatility of 35% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.