--- title: "Assessing McKesson (MCK) Valuation After Strong Q4 And Full Year Earnings Results" type: "News" locale: "en" url: "https://longbridge.com/en/news/286723107.md" description: "McKesson (MCK) reported strong Q4 and full year earnings, with increased sales and net income, leading to a 1.79% rise in stock price to $760.57. Despite recent declines, long-term returns remain robust. Analysts suggest the stock is undervalued at $951.73, driven by earnings power and acquisitions. However, a DCF model indicates potential downside risk, emphasizing the need to weigh earnings against cash generation. Investors are encouraged to explore other opportunities in healthcare." datetime: "2026-05-18T06:17:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286723107.md) - [en](https://longbridge.com/en/news/286723107.md) - [zh-HK](https://longbridge.com/zh-HK/news/286723107.md) --- # Assessing McKesson (MCK) Valuation After Strong Q4 And Full Year Earnings Results McKesson (MCK) is in focus after reporting fourth quarter and full year results to March 31, 2026, with higher sales, net income and earnings per share drawing fresh attention to the stock. See our latest analysis for McKesson. At a share price of $760.57, McKesson has risen 1.79% over the past day and 4.88% across the past week, although the share price is down 12.21% over 30 days and 19.64% over 90 days. The 5 year total shareholder return of 291.83% and 3 year total shareholder return of 94.55% indicate that long term holders have seen very large gains overall, so recent weakness contrasts with a stronger multi year record. If McKesson’s results have you thinking more broadly about healthcare exposure, this may be a moment to scan for other opportunities through our 32 healthcare AI stocks With fresh earnings, a long run of strong total returns and an ongoing buyback, McKesson now sits at a crossroads. Is the recent pullback a chance to buy healthcare scale at a discount, or is the stock already pricing in future growth? ## Most Popular Narrative: 20.1% Undervalued McKesson's most followed narrative pegs fair value at $951.73 compared with the last close at $760.57, setting up a story built on earnings power, capital returns and modest discounting assumptions. > _Increasing adoption of specialty and oncology pharmaceuticals, alongside recent acquisitions (Core Ventures and PRISM Vision) that expand the provider network and service portfolio, are improving revenue mix quality and positioning the company for higher operating margins and earnings growth._ Read the complete narrative. Analysts behind this narrative are leaning on steady top line expansion, flat margins and a higher future earnings multiple to support that fair value. It is worth exploring which combination of volume growth, share count reduction and required return assumptions drives the 20.1% gap to their estimate. **Result: Fair Value of $951.73 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on regulators not squeezing drug pricing too hard and on healthcare consolidation not cutting distributors like McKesson out of key profit pools. Find out about the key risks to this McKesson narrative. ## Another View: Cash Flows Tell a Tougher Story While the consensus narrative points to McKesson trading at a 20.1% discount to fair value using earnings based assumptions, the Simply Wall St DCF model paints a very different picture. On this view, the current $760.57 share price sits far above an estimated future cash flow value of $1.67, which indicates downside risk rather than upside. For you, the question is which matters more right now: earnings power or cash generation. Look into how the SWS DCF model arrives at its fair value. MCK Discounted Cash Flow as at May 2026 Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out McKesson for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. ## Next Steps With such a mixed set of signals, do you see more to like or to worry about here, and are you ready to move quickly on your own view by weighing the 5 key rewards and 1 important warning sign in our 5 key rewards and 1 important warning sign ## Looking for more investment ideas? If McKesson has sharpened your focus, do not stop here, the next strong idea could be sitting in plain sight and you will want to spot it early. - Target dependable income by reviewing companies in the 14 dividend fortresses that aims to highlight stocks combining higher yields with stability. - Hunt for quality at a discount with the screener containing 21 high quality undiscovered gems that points you toward companies with strong fundamentals that others may be overlooking. - Prioritize resilience by using the 67 resilient stocks with low risk scores to focus on stocks with lower risk scores that could help steady your portfolio. _This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._ ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [MCK.US](https://longbridge.com/en/quote/MCK.US.md) - [PPH.US](https://longbridge.com/en/quote/PPH.US.md) - [XPH.US](https://longbridge.com/en/quote/XPH.US.md) - [LABU.US](https://longbridge.com/en/quote/LABU.US.md) - [IHE.US](https://longbridge.com/en/quote/IHE.US.md) - [XBI.US](https://longbridge.com/en/quote/XBI.US.md) - [XHE.US](https://longbridge.com/en/quote/XHE.US.md) - [PJP.US](https://longbridge.com/en/quote/PJP.US.md) - [BBH.US](https://longbridge.com/en/quote/BBH.US.md) - [FBT.US](https://longbridge.com/en/quote/FBT.US.md) - [IHI.US](https://longbridge.com/en/quote/IHI.US.md) - [IBB.US](https://longbridge.com/en/quote/IBB.US.md) - [BIB.US](https://longbridge.com/en/quote/BIB.US.md) - [SBIO.US](https://longbridge.com/en/quote/SBIO.US.md) - [PBE.US](https://longbridge.com/en/quote/PBE.US.md) ## Related News & Research - [Resona Asset Management Co. 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