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McKessonFRA:MCK +0.87%82 Owner Earnings per Share (TTM) is 41.28 as of Jun. 2026, which is 131% above its 10-year median of 17.86. GuruFocus rates FRA:MCK with a GF Score™ of 82/100 and a GF Value™ of €697.17. The stock has 2 warning signs investors should review. Among 63 Medical Distribution companies, McKesson ranks worse than 63.49% on this metric.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
McKesson's Owner Earnings per Share (TTM) ended in Jun. 2026 was €41.28. It's Price-to-Owner-Earnings ratio for today is 18.
The historical rank and industry rank for McKesson's Owner Earnings per Share (TTM) or its related term are showing as below:
FRA:MCK'
s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 3.77 Med: 17.86 Max: 250.57
Current: 17.85
During the past 13 years, the highestPrice-to-Owner-Earnings ratio of McKesson was 250.57. The lowest was 3.77. And the median was 17.86.
FRA:MCK's Price-to-Owner-Earnings is ranked worse than 63.49% of 63
companies
in the Medical Distribution industry
Industry Median: 12.48
vs FRA:MCK: 17.85
Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.
Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.
McKesson Owner Earnings per Share (TTM) Related Terms
McKesson Owner Earnings per Share (TTM) Historical Data
* Premium members only.
The historical data trend for McKesson's Owner Earnings per Share (TTM) 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.
FRA:MCK vs COR, CAH, HSIC: Owner Earnings per Share (TTM) Comparison
For the Medical Distribution subindustry, McKesson's Price-to-Owner-Earnings, along with its competitors' market caps and Price-to-Owner-Earnings 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 Price-to-Owner-Earnings vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, McKesson's Price-to-Owner-Earnings distribution charts can be found below:
* The bar in red indicates where McKesson's Price-to-Owner-Earnings falls into.
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income.
McKesson's Change In Deferred Tax for the trailing twelve months (TTM) ended in Jun. 2026 was €222 Mil.
4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = €467 Mil
It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.
The following shows how to get maintenance capital expenditure.
First, calculate the revenue change regarding to the previous quarter. If the revenue decreased from the previous quarter, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous quarter, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.
McKesson's 5-Year Average Maintenance Capital Expenditure = €467 Mil
5. "Change In Working Capital" is from cashflow statement. McKesson's Change In Working Capital for the trailing twelve months (TTM) ended in Jun. 2026 was €598 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.
* 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.
What does a Owner Earnings per Share (TTM) of 41.28 mean?
McKesson (FRA:MCK) has a Owner Earnings per Share (TTM) of 41.28 as of Jun. 2026. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on McKesson. This is 131% above median its historical median of 17.86. Over the past decade, McKesson's Owner Earnings per Share (TTM) has ranged from 3.77 to 250.57. According to the industry distribution chart, McKesson ranks #40 out of 63 companies in the Medical Distribution industry, placing it in the top 63.5%.
Is McKesson's Owner Earnings per Share (TTM) too high?
McKesson's current Owner Earnings per Share (TTM) of 41.28 is 131% above median its 10-year median of 17.86. Over the past 10 years, this metric has ranged from a low of 3.77 to a high of 250.57. The Medical Distribution industry median Owner Earnings per Share (TTM) is 12.48. McKesson's value of 41.28 is 230.8% above this industry median. Based on the distribution chart, McKesson ranks #40 out of 63 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, McKesson has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does McKesson's Owner Earnings per Share (TTM) compare to COR and CAH?
According to the Medical Distribution industry distribution chart, McKesson ranks #40 out of 63 companies for Owner Earnings per Share (TTM). This places McKesson in the lower half of its industry. The industry median Owner Earnings per Share (TTM) is 12.48. McKesson's value of 41.28 is 230.8% above this benchmark. Historically, McKesson's own Owner Earnings per Share (TTM) has ranged from 3.77 to 250.57 over the past decade. While the company's 10-year median is 17.86 vs. the industry median of 12.48, 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 Owner Earnings per Share (TTM) for a Medical Distribution company?
The median Owner Earnings per Share (TTM) among Medical Distribution companies is 12.48, based on 63 companies in the industry. Companies in the top quartile (top 25%) have a Owner Earnings per Share (TTM) significantly above this median, while those in the bottom quartile fall well below. However, Owner Earnings per Share (TTM) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. McKesson's current Owner Earnings per Share (TTM) of 41.28 is 230.8% 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 Owner Earnings per Share (TTM) mean?
A high Owner Earnings per Share (TTM) can signal that a stock is expensive relative to its fundamentals. Warren Buffett defined owner earnings as reported earnings plus depreciation less average maintenance capital expenditure. View historical data on McKesson. For the Medical Distribution industry, the median Owner Earnings per Share (TTM) is 12.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McKesson's current Owner Earnings per Share (TTM) is 41.28, which is 131% above median its own 10-year median of 17.86. 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 (FRA:MCK) has a current Owner Earnings per Share (TTM) of 41.28. The stock's GF Value™ is €697.17, compared to a current price of €743.00 — trading 6.6% above its estimated fair value. The current Owner Earnings per Share (TTM) is 41.28, which is 131% above median its 10-year median of 17.86 and 230.8% above the Medical Distribution industry median of 12.48. McKesson's overall GF Score™ is 82/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Owner Earnings per Share (TTM) calculated?
Owner Earnings per Share (TTM) is calculated from a company's financial statements. For McKesson (FRA:MCK), the current Owner Earnings per Share (TTM) is 41.28 as of Jun. 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 €743.00 is trading 6.6% above its estimated GF Value™ of €697.17.
Key valuation signals for FRA:MCK:
Owner Earnings per Share (TTM): 41.28 (131% above median its 10-year median of 17.86)
GF Value™: €697.17 vs. price of €743.00 (6.6% above fair value)
Industry Position: 230.8% above the Medical Distribution median (#40 of 63)
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.
82GF Score
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