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McKessonWBO:MCK 80 EV-to-OCF is 16.01 as of Sep. 12, 2026, which is 45% above its 10-year median of 11.03. GuruFocus rates WBO:MCK with a GF Score™ of 80/100 and a GF Value™ of €709.77. The stock has 2 warning signs investors should review. Among 121 Medical Distribution companies, McKesson ranks worse than 73.55% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, McKesson's Enterprise Value is €94,159 Mil.
McKesson's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €5,882 Mil. Therefore, McKesson's EV-to-OCF for today is 16.01.
The historical rank and industry rank for McKesson's EV-to-OCF or its related term are showing as below:
WBO:MCK'
s EV-to-OCF Range Over the Past 10 Years
Min: 5.92 Med: 11.03 Max: 37.67
Current: 16.38
During the past 13 years, the highest EV-to-OCF of McKesson was 37.67. The lowest was 5.92. And the median was 11.03.
WBO:MCK's EV-to-OCF is ranked worse than 73.55% of 121
companies
in the Medical Distribution industry
Industry Median: 7.95
vs WBO:MCK: 16.38
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
McKesson's share price for today is €754.80.
McKesson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €32.119.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
McKesson EV-to-OCF Related Terms
McKesson EV-to-OCF Historical Data
* Premium members only.
The historical data trend for McKesson's EV-to-OCF can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Medical Distribution subindustry, McKesson's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McKesson EV-to-OCF vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, McKesson's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where McKesson's EV-to-OCF falls into.
McKesson's current Enterprise Value is €94,159 Mil.
McKesson's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €5,882 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
McKesson (WBO:MCK) has a EV-to-OCF of 16.01 as of Sep. 12, 2026. This is 45% above median its historical median of 11.03. Over the past decade, McKesson's EV-to-OCF has ranged from 5.92 to 37.67. According to the industry distribution chart, McKesson ranks #89 out of 121 companies in the Medical Distribution industry, placing it in the top 73.6%.
Is McKesson's EV-to-OCF too high?
McKesson's current EV-to-OCF of 16.01 is 45% above median its 10-year median of 11.03. Over the past 10 years, this metric has ranged from a low of 5.92 to a high of 37.67. The Medical Distribution industry median EV-to-OCF is 7.95. McKesson's value of 16.01 is 101.4% above this industry median. Based on the distribution chart, McKesson ranks #89 out of 121 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, McKesson has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does McKesson's EV-to-OCF compare to ?
According to the Medical Distribution industry distribution chart, McKesson ranks #89 out of 121 companies for EV-to-OCF. This places McKesson in the lower half of its industry. The industry median EV-to-OCF is 7.95. McKesson's value of 16.01 is 101.4% above this benchmark. Historically, McKesson's own EV-to-OCF has ranged from 5.92 to 37.67 over the past decade. While the company's 10-year median is 11.03 vs. the industry median of 7.95, McKesson has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Medical Distribution company?
The median EV-to-OCF among Medical Distribution companies is 7.95, based on 121 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McKesson's current EV-to-OCF of 16.01 is 101.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Medical Distribution industry, the median EV-to-OCF is 7.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McKesson's current EV-to-OCF is 16.01, which is 45% above median its own 10-year median of 11.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McKesson stock overvalued right now?
McKesson (WBO:MCK) has a current EV-to-OCF of 16.01. The stock's GF Value™ is €709.77, compared to a current price of €754.80 — trading 6.3% above its estimated fair value. The current EV-to-OCF is 16.01, which is 45% above median its 10-year median of 11.03 and 101.4% above the Medical Distribution industry median of 7.95. McKesson's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For McKesson (WBO:MCK), the current EV-to-OCF is 16.01 as of Sep. 12, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is McKesson (WBO:MCK) Overvalued in 2026?
Based on GuruFocus' analysis, McKesson stock appears to be overvalued.
The current stock price of €754.80 is trading 6.3% above its estimated GF Value™ of €709.77.
Key valuation signals for WBO:MCK:
EV-to-OCF: 16.01 (45% above median its 10-year median of 11.03)
GF Value™: €709.77 vs. price of €754.80 (6.3% above fair value)
Industry Position: 101.4% above the Medical Distribution median (#89 of 121)
No single metric tells the full story. See the WBO:MCK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
McKesson is one of three leading pharmaceutical wholesalers in the US engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and Cardinal Health, the three account for over 90% of the US pharmaceutical wholesale industry. Outside the US market, McKesson engages in pharmaceutical wholesale and distribution in Canada. Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.
80GF Score
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