McKessonFRA:MCK -0.29%81 EV-to-FCF is 18.56 as of Jul. 04, 2026, which is 47% above its 10-year median of 12.66. GuruFocus rates FRA:MCK with a GF Score™ of 81/100 and a GF Value™ of €674.26 (Fairly Valued). The stock has 2 warning signs investors should review. Among 75 Medical Distribution companies, McKesson ranks worse than 54.67% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, McKesson's Enterprise Value is €86,081 Mil.
McKesson's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was €4,637 Mil. Therefore, McKesson's EV-to-FCF for today is 18.56.
The historical rank and industry rank for McKesson's EV-to-FCF or its related term are showing as below:
FRA:MCK'
s EV-to-FCF Range Over the Past 10 Years
Min: 6.59 Med: 12.66 Max: 57.27
Current: 18.12
During the past 13 years, the highest EV-to-FCF of McKesson was 57.27. The lowest was 6.59. And the median was 12.66.
FRA:MCK's EV-to-FCF is ranked worse than 54.67% of 75
companies
in the Medical Distribution industry
Industry Median: 16.66
vs FRA:MCK: 18.12
EV-to-FCF 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-FCF 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 €682.00.
McKesson's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €33.068.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
McKesson EV-to-FCF Related Terms
McKesson EV-to-FCF Historical Data
* Premium members only.
The historical data trend for McKesson's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, McKesson's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where McKesson's EV-to-FCF falls into.
McKesson's current Enterprise Value is €86,081 Mil.
McKesson's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €4,637 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 (FRA:MCK) has a EV-to-FCF of 18.56 as of Jul. 04, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on McKesson and its competitors. This is 47% above median its historical median of 12.66. Over the past decade, McKesson's EV-to-FCF has ranged from 6.59 to 57.27. According to the industry distribution chart, McKesson ranks #41 out of 75 companies in the Medical Distribution industry, placing it in the top 54.7%.
Is McKesson's EV-to-FCF too high?
McKesson's current EV-to-FCF of 18.56 is 47% above median its 10-year median of 12.66. Over the past 10 years, this metric has ranged from a low of 6.59 to a high of 57.27. The Medical Distribution industry median EV-to-FCF is 16.66. McKesson's value of 18.56 is 11.4% above this industry median. Based on the distribution chart, McKesson ranks #41 out of 75 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, McKesson has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does McKesson's EV-to-FCF compare to CAH and COR?
According to the Medical Distribution industry distribution chart, McKesson ranks #41 out of 75 companies for EV-to-FCF. This places McKesson in the lower half of its industry. The industry median EV-to-FCF is 16.66. McKesson's value of 18.56 is 11.4% above this benchmark. Historically, McKesson's own EV-to-FCF has ranged from 6.59 to 57.27 over the past decade. While the company's 10-year median is 12.66 vs. the industry median of 16.66, 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-FCF for a Medical Distribution company?
The median EV-to-FCF among Medical Distribution companies is 16.66, based on 75 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McKesson's current EV-to-FCF of 18.56 is 11.4% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on McKesson and its competitors. For the Medical Distribution industry, the median EV-to-FCF is 16.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McKesson's current EV-to-FCF is 18.56, which is 47% above median its own 10-year median of 12.66. 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?
Based on GuruFocus' analysis, McKesson (FRA:MCK) is currently considered Fairly Valued. The stock's GF Value™ is €674.26, compared to a current price of €682.00 — trading 1.1% above its estimated fair value. The current EV-to-FCF is 18.56, which is 47% above median its 10-year median of 12.66 and 11.4% above the Medical Distribution industry median of 16.66. McKesson's overall GF Score™ is 81/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For McKesson (FRA:MCK), the current EV-to-FCF is 18.56 as of Jul. 04, 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 (FRA:MCK) Overvalued in 2026?
Based on GuruFocus' analysis, McKesson stock appears to be overvalued.
The current stock price of €682.00 is trading 1.1% above its estimated GF Value™ of €674.26.
GuruFocus considers McKesson to be Fairly Valued.
Key valuation signals for FRA:MCK:
EV-to-FCF: 18.56 (47% above median its 10-year median of 12.66)
GF Value™: €674.26 vs. price of €682.00 (1.1% above fair value)
Industry Position: 11.4% above the Medical Distribution median (#41 of 75)
No single metric tells the full story. See the FRA: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.
81GF Score
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