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McKesson PS Ratio

: 0.20 (As of Today)
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The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, McKesson's share price is $358.76. McKesson's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $1,783.83. Hence, McKesson's PS Ratio for today is 0.20.

Warning Sign:

McKesson Corp stock PS Ratio (=0.2) is close to 5-year high of 0.2

The historical rank and industry rank for McKesson's PS Ratio or its related term are showing as below:

MCK' s PS Ratio Range Over the Past 10 Years
Min: 0.1   Med: 0.17   Max: 0.32
Current: 0.2

During the past 13 years, McKesson's highest PS Ratio was 0.32. The lowest was 0.10. And the median was 0.17.

MCK's PS Ratio is ranked better than
73.26% of 86 companies
in the Medical Distribution industry
Industry Median: 0.59 vs MCK: 0.20

McKesson's Revenue per Sharefor the three months ended in Jun. 2022 was $460.27. Its Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 was $1,783.83.

During the past 12 months, the average Revenue per Share Growth Rate of McKesson was 16.30% per year. During the past 3 years, the average Revenue per Share Growth Rate was 16.40% per year. During the past 5 years, the average Revenue per Share Growth Rate was 14.10% per year. During the past 10 years, the average Revenue per Share Growth Rate was 13.30% per year.

During the past 13 years, McKesson's highest 3-Year average Revenue per Share Growth Rate was 23.70% per year. The lowest was -13.60% per year. And the median was 11.60% per year.

Back to Basics: PS Ratio


McKesson PS Ratio Historical Data

The historical data trend for McKesson's PS Ratio 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.

* Premium members only.

McKesson Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
PS Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.14 0.11 0.11 0.13 0.18

McKesson Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PS Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.12 0.13 0.15 0.18 0.18

Competitive Comparison

For the Medical Distribution subindustry, McKesson's PS Ratio, along with its competitors' market caps and PS Ratio 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 PS Ratio Distribution

For the Medical Distribution industry and Healthcare sector, McKesson's PS Ratio distribution charts can be found below:

* The bar in red indicates where McKesson's PS Ratio falls into.



McKesson PS Ratio Calculation

The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.

McKesson's PS Ratio for today is calculated as

PS Ratio=Share Price/Revenue per Share (TTM)
=358.76/1783.828
=0.20

McKesson's Share Price of today is $358.76.
McKesson's Revenue per Share for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $1,783.83.

* 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.

It can also be calculated from the numbers for the whole company:

PS Ratio=Market Cap/Revenue

The Revenue here is for the trailing 12 months.


McKesson  (NYSE:MCK) PS Ratio Explanation

The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.

When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.

Similar to the PE Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PS Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.


McKesson PS Ratio Related Terms

Thank you for viewing the detailed overview of McKesson's PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


McKesson Business Description

McKesson logo
Address
6555 State Highway 161, Irving, TX, USA, 75039
McKesson is a leading wholesaler of branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with AmerisourceBergen and Cardinal Health, the three account for well over 90% of the U.S. pharmaceutical wholesale industry. McKesson is currently divesting from its pharmaceutical wholesale and distribution in Europe and Canada in order to redeploy capital to strategic growth areas in the U.S. (oncology network and ecosystem, and biopharma services). Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.
Executives
Rodgers Thomas L officer: EVP, Chief Strategy & BDO 6555 NORTH STATE HWY 161 IRVING TX 75039
Dunbar Webster Roy director 5757 N. GREEN BAY AVENUE MILWAUKEE WI 53209
Rutledge Napoleon B Jr officer: SVP, Controller & CAO 2999 WILDWOOD PARKWAY ATLANTA GA 30339
Flores Nancy officer: EVP, CIO & CTO 6555 NORTH STATE HWY 161 IRVING TX 75039
Hinton James H. director 6555 NORTH STATE HWY. 161 IRVING TX 75039
Wilson-thompson Kathleen director PO BOX 3599 BATTLE CREEK MI 49016-3599
Faber Tracy officer: EVP & Chief HR Officer 6555 NORTH STATE HWY 161 IRVING TX 75039
Tyler Brian S. officer: Chief Executive Officer MCKESSON CORPORATION 6555 STATE HWY 161 IRVING TX 75039
Schechter Lori A. officer: EVP, Chief Legal Officer & GC MCKESSON CORPORATION 6555 NORTH STATE HWY 161 IRVING TX 75039
Vitalone Britt J. officer: EVP & CFO MCKESSON CORPORATION 6555 STATE HWY 161 IRVING TX 75039
Emerson Kevin officer: SVP, Controller & CAO 6555 NORTH STATE HWY 161 IRVING TX 75039
Carmona Richard H director 1221 BROADWAY OAKLAND CA 94612
Mantia Linda Provie director C/O CERIDIAN HCM HOLDING INC., 3311 EAST OLD SHAKOPEE ROAD MINNEAPOLIS MN 55425
Martinez Maria director THE LANDMARK @ 1 MARKET STREET SUITE 300 SAN FRANCISCO CA 94105
Washington Kenneth E director 6555 STATE HWY 161 IRVING TX 75039

McKesson Headlines

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