Strativest CapitalSTRATIVEST RESEARCH
Independent research · Est. October 2026
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Stock X-Ray · Health Care · S&P 500 Full Coverage — Phase 1

McKesson (MCK)

X-Ray dated Oct 28, 2026 · Share price as of Oct 28, 2026 intraday, when the valuation snapshot was captured · Financials from SEC filings (EDGAR) · Valuation multiples from a labelled secondary source
The verdict — valuation label: OVERVALUED

Forward P/E is 20.80x against a peer median of 16.90x, a ratio of 1.23x — above the 1.15 fair-band ceiling — with trailing P/E 25.82x and PEG 1.63. Latest-quarter revenue grew 7.7% year over year (PRIMARY, EDGAR), only close to the group pace rather than far above it, and the PEG is above 1.5, so no growth exception applies. Delivered demand check: the Health care distributors group's median growth was 7.2% year over year — demand steady, and this company is growing at about that pace, not fast enough to pay for the premium.

20.8×
Forward P/E — price vs next year’s expected earnings (secondary source)
16.9×
Peer median forward P/E — closest comparable companies
25.8×
Trailing P/E — price vs the last twelve months of earnings
0.3×
Price / sales

What would change this label: Move to FAIRLY PRICED if the forward P/E compresses to about 19.4x or below (1.15x the peer median) at unchanged estimates, or if revenue growth rises above 15% year over year for two quarters with the PEG falling below about 1.5. Move further from fair value if growth falls below 3% year over year while the forward multiple stays above 20x.

In simple words

McKesson delivers medicines and medical supplies to pharmacies and hospitals. Its shares cost more than similar distributors — about 21 times expected earnings against about 17 times for peers — even though its sales grow at about the same pace. That makes the shares overvalued.

Words we use, in plain English: P/E ratio — the share price divided by earnings per share; how many dollars you pay for one dollar of yearly profit. Forward P/E — the same, using next year’s expected earnings. Free cash flow — cash a company has left after running the business and buying equipment. TTM — the last twelve months. Drawdown — the worst fall from a peak to the low after it.
The share price vs the market — six years
McKesson (MCK)S&P 500 (SPY)
492193895587282021202220232024202520262020-09-012026-10-27

Both lines start at 100 on 2020-09-01. Over the full window McKesson returned +543.74% and the S&P 500 +118.28% (price returns; dividends not reinvested). Worst peak-to-trough fall for McKesson: -27.2% (2026-03-03 to 2026-05-11). Source: Nasdaq official daily history.

What the label rests on

Forward P/E is 20.80x against a peer median of 16.90x, a ratio of 1.23x — above the 1.15 fair-band ceiling — with trailing P/E 25.82x and PEG 1.63. Latest-quarter revenue grew 7.7% year over year (PRIMARY, EDGAR), only close to the group pace rather than far above it, and the PEG is above 1.5, so no growth exception applies. Delivered demand check: the Health care distributors group's median growth was 7.2% year over year — demand steady, and this company is growing at about that pace, not fast enough to pay for the premium. The company’s forward P/E is 20.8× against a peer median of 16.9×. Its own history: UNVERIFIED — no sourced range available. Sector demand read: Delivered demand check: the Health care distributors group's median latest-quarter revenue growth was 7.2% year over year (SEC filings) — demand steady. This company grew 7.7%, essentially at that pace. Latest-quarter sales growth was +7.7% versus a year earlier (SEC filings).

CompanyPrice (Oct 28, 2026)Forward P/ETrailing P/E
McKesson (MCK)$967.7120.8×25.8×
COR—16.9×24.3×
CAH—19.6×34.2×
HSIC—15.0×24.8×
Peer median16.9×

Multiples: stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026. Peer set chosen by sector; the median is the middle value of the set. The label and its numbers were recorded in the programme’s label registry on Oct 28, 2026 and will be scored at 6 and 12 months.

Sales, profit and cash

Sales each quarter, and the gross margin
SalesGross margin (right axis)
$0B$40B$79B$119B0%3%7%Sep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Jun 2026

Gross margin = gross profit divided by sales, from SEC filings.

Cash left over each quarter (free cash flow)
PositiveNegative
$-8B$0B$8BSep 2020Sep 2021Sep 2022Sep 2023Sep 2024Sep 2025Jun 2026

Free cash flow = cash from operations minus spending on plant and equipment, both from the company’s SEC cash-flow statement. Gaps are quarters where that spending line is not separately tagged in the filings — shown as gaps, never estimated.

QuarterSalesGross marginNet incomeEPS (GAAP, diluted)Free cash flow
Q/E Jun 2026
2026-06-30
$105.4B3.5%$614M5.15$-332M
Q/E Mar 2026
2026-03-31
$96.3B4.2%$1.7B—$3.3B
Q/E Dec 2025
2025-12-31
$106.2B3.5%$1.2B9.59$1.1B
Q/E Sep 2025
2025-09-30
$103.2B3.4%$1.1B8.92$2.3B
Q/E Jun 2025
2025-06-30
$97.8B3.4%$784M6.25$-1.0B
Q/E Mar 2025
2025-03-31
$90.8B4.0%$1.3B—$7.6B
Q/E Dec 2024
2024-12-31
$95.3B3.5%$879M6.95$-2.5B
Q/E Sep 2024
2024-09-30
$93.7B3.5%$241M1.87$2.0B
Q/E Jun 2024
2024-06-30
$79.3B4.0%$915M7.00$-1.5B
Q/E Mar 2024
2024-03-31
$76.4B4.7%$791M—$4.0B
Q/E Dec 2023
2023-12-31
$80.9B3.9%$589M4.42$164M
Q/E Sep 2023
2023-09-30
$77.2B4.0%$664M4.92$890M

The last twelve reported quarters. Full 24-quarter history sits in the data pack behind this page. A dash means the figure is not tagged as a standalone quarter in the company’s SEC facts (the usual case is the fourth quarter, which many companies only report inside the full-year filing) — it is missing, not zero.

Earnings: getting better or worse?

Each box is one quarter’s earnings per share (EPS). Green means EPS was higher than the same quarter a year earlier; red means lower; a dash means the figure is not tagged in the filings.

Sep 2022
6.42
Dec 2022
7.66
Mar 2023
—
Jun 2023
7.02
Sep 2023
4.92
Dec 2023
4.42
Mar 2024
—
Jun 2024
7.00
Sep 2024
1.87
Dec 2024
6.95
Mar 2025
—
Jun 2025
6.25
Sep 2025
8.92
Dec 2025
9.59
Mar 2026
—
Jun 2026
5.15

Basis: GAAP diluted EPS from SEC company facts, compared with the same quarter a year earlier.

Key facts

ItemValue
Company (legal name in filings)MCKESSON CORP
Chief executiveBrian Tyler (source: https://www.McKesson.com/siteassets/documents/about-us/leadership/brian-tyler-bio.pdf)
SectorHealth Care — Health Care Distributors — distributes medicines and medical supplies to pharmacies and hospitals
Share price (Oct 28, 2026)$967.71
Market value (market cap)$112.7B — share price times shares outstanding of 116,590,363 (SEC filings; SEC EDGAR dei EntityCommonStockSharesOutstanding (latest))
Sales, last twelve months$411.0B
Net income, last twelve months$4.6B
Free cash flow, last twelve months$6.4B
Latest reported quarterQ/E Jun 2026 (of 24 quarters in the data pack)
Six-year price return vs S&P 500+543.74% vs +118.28%
Worst peak-to-trough fall-27.2% (2026-03-03 to 2026-05-11)

What we could not verify

  • TTM GAAP diluted EPS could not be summed from company facts because at least one of the last four quarters (typically Q4) has no standalone tagged EPS; trailing P/E is therefore taken from the labelled secondary source in valuation_label.md.
  • Own-history P/E range not yet compiled for this company in the Phase 1 batch run; the label rests on peer-median, growth and PEG evidence.
  • Guidance record (each quarter scored against the guidance the company gave the quarter before) is not yet compiled for this company — it is a Phase 2 layer. The earnings strip below therefore uses reported EPS versus a year earlier, which is fully sourced from filings.

The IT factor — the most exciting thing the market is overlooking — is not assessed on an X-Ray page. It belongs to the Deep Dive (Phase 2), where it gets the evidence standard it needs. Leadership-era scoring (the six years split by chief executive) is likewise a Phase 2 layer; this page names the current chief executive only, from a sourced profile.

Sources

  • SEC EDGAR submissions — Filing index; company legal name. https://data.sec.gov/submissions/CIK0000927653.json
  • SEC EDGAR company facts — Quarterly financial spine: revenue, gross profit, net income, GAAP diluted EPS, operating cash flow, PP&E capex, buybacks, dividends, diluted shares. https://data.sec.gov/api/xbrl/companyfacts/CIK0000927653.json
  • Nasdaq official daily history — Daily closes for the company; SPY (assetclass=etf) saved as raw/nasdaq_spy_raw.json over identical dates. https://api.nasdaq.com/api/quote/MCK/historical?assetclass=stocks
  • Valuation multiples and peer figures — stockanalysis.com (SECONDARY, S&P Global data), fetched Oct 28, 2026; see valuation_label.md in the data pack.

Conventions: earliest-filed value per period, as first reported; cash-flow years-to-date differenced quarter by quarter; EPS never differenced; free cash flow = operating cash flow minus plant-and-equipment spending. This page is a dated snapshot — updates are new versions, never silent edits.

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