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MCK (McKesson) Cyclically Adjusted Price-to-FCF : 25.74 (As of Jul. 06, 2025)


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What is McKesson Cyclically Adjusted Price-to-FCF?

As of today (2025-07-06), McKesson's current share price is $719.30. McKesson's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 was $27.95. McKesson's Cyclically Adjusted Price-to-FCF for today is 25.74.

The historical rank and industry rank for McKesson's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

MCK' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 8.48   Med: 15.73   Max: 30.33
Current: 25.73

During the past years, McKesson's highest Cyclically Adjusted Price-to-FCF was 30.33. The lowest was 8.48. And the median was 15.73.

MCK's Cyclically Adjusted Price-to-FCF is ranked worse than
51.11% of 45 companies
in the Medical Distribution industry
Industry Median: 25.73 vs MCK: 25.73

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

McKesson's adjusted free cash flow per share data for the three months ended in Mar. 2025 was $59.286. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $27.95 for the trailing ten years ended in Mar. 2025.

Shiller PE for Stocks: The True Measure of Stock Valuation


McKesson Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for McKesson's Cyclically Adjusted Price-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.

* Premium members only.

McKesson Cyclically Adjusted Price-to-FCF Chart

McKesson Annual Data
Trend Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.64 15.68 15.68 21.73 24.07

McKesson Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial 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 21.73 24.71 19.56 25.08 24.07

Competitive Comparison of McKesson's Cyclically Adjusted Price-to-FCF

For the Medical Distribution subindustry, McKesson's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-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's Cyclically Adjusted Price-to-FCF Distribution in the Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, McKesson's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where McKesson's Cyclically Adjusted Price-to-FCF falls into.


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McKesson Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

McKesson's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=719.30/27.95
=25.74

* 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's Cyclically Adjusted FCF per Share for the quarter that ended in Mar. 2025 is calculated as:

For example, McKesson's adjusted Free Cash Flow per Share data for the three months ended in Mar. 2025 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Mar. 2025 (Change)*Current CPI (Mar. 2025)
=59.286/134.9266*134.9266
=59.286

Current CPI (Mar. 2025) = 134.9266.

McKesson Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201506 1.421 100.684 1.904
201509 2.736 100.392 3.677
201512 -3.569 99.792 -4.826
201603 12.374 100.470 16.618
201606 7.654 101.688 10.156
201609 4.136 101.861 5.479
201612 1.135 101.863 1.503
201703 5.804 102.862 7.613
201706 2.925 103.349 3.819
201709 2.195 104.136 2.844
201712 -0.745 104.011 -0.966
201803 13.767 105.290 17.642
201806 -5.970 106.317 -7.577
201809 6.412 106.507 8.123
201812 -1.713 105.998 -2.181
201903 19.475 107.251 24.501
201906 -0.857 108.070 -1.070
201909 -0.989 108.329 -1.232
201912 -1.530 108.420 -1.904
202003 25.330 108.902 31.383
202006 -7.224 108.767 -8.961
202009 5.349 109.815 6.572
202012 6.589 109.897 8.090
202103 19.874 111.754 23.995
202106 -11.265 114.631 -13.259
202109 10.732 115.734 12.512
202112 8.417 117.630 9.655
202203 18.336 121.301 20.396
202206 -7.135 125.017 -7.701
202209 6.836 125.227 7.366
202212 10.738 125.222 11.570
202303 22.825 127.348 24.183
202306 -8.609 128.729 -9.023
202309 6.120 129.860 6.359
202312 0.750 129.419 0.782
202403 29.446 131.776 30.150
202406 -11.836 132.554 -12.048
202409 14.555 133.029 14.763
202412 -20.371 133.157 -20.642
202503 59.286 134.927 59.286

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


McKesson  (NYSE:MCK) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


McKesson Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of McKesson's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


McKesson Business Description

Industry
Address
6555 State Highway 161, Irving, TX, USA, 75039
McKesson Corp 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.
Executives
Leann B Smith officer: EVP & Chief HR Officer 6555 NORTH STATE HWY 161, IRVING TX 75039
Rutledge Napoleon B Jr officer: SVP, Controller & CAO 2999 WILDWOOD PARKWAY, ATLANTA GA 30339
Britt J. Vitalone officer: EVP & CFO MCKESSON CORPORATION, 6555 STATE HWY 161, IRVING TX 75039
Thomas L Rodgers officer: EVP, Chief Strategy & BDO 6555 NORTH STATE HWY 161, IRVING TX 75039
Brian S. Tyler officer: Chief Executive Officer MCKESSON CORPORATION, 6555 STATE HWY 161, IRVING TX 75039
Maria Martinez director THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Susan Nowakowski director 14778 EL RODEO CT., RANCHO SANTA FE CA 92067
Lori A. Schechter officer: EVP, Chief Legal Officer & GC MCKESSON CORPORATION, 6555 NORTH STATE HWY 161, IRVING TX 75039
Nancy Flores officer: EVP, CIO & CTO 6555 NORTH STATE HWY 161, IRVING TX 75039
Tracy Faber officer: EVP & Chief HR Officer 6555 NORTH STATE HWY 161, IRVING TX 75039
Donald R Knauss director P O BOX 1734, ATLANTA GA 30301
Bradley E Lerman director MEDTRONIC, INC., 710 MEDTRONIC PKWY MSLC300, MINNEAPOLIS MN 55432
Dominic J Caruso director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Webster Roy Dunbar director 5757 N. GREEN BAY AVENUE, MILWAUKEE WI 53209
James H. Hinton director 6555 NORTH STATE HWY. 161, IRVING TX 75039