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MCK (McKesson) Shiller PE Ratio : 58.48 (As of Oct. 31, 2024)


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What is McKesson Shiller PE Ratio?

As of today (2024-10-31), McKesson's current share price is $500.59. McKesson's E10 for the quarter that ended in Jun. 2024 was $8.56. McKesson's Shiller PE Ratio for today is 58.48.

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

MCK' s Shiller PE Ratio Range Over the Past 10 Years
Min: 14.8   Med: 35.52   Max: 78.81
Current: 58.48

During the past years, McKesson's highest Shiller PE Ratio was 78.81. The lowest was 14.80. And the median was 35.52.

MCK's Shiller PE Ratio is ranked worse than
92.73% of 55 companies
in the Medical Distribution industry
Industry Median: 17.36 vs MCK: 58.48

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

McKesson's adjusted earnings per share data for the three months ended in Jun. 2024 was $7.000. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $8.56 for the trailing ten years ended in Jun. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


McKesson Shiller PE Ratio Historical Data

The historical data trend for McKesson's Shiller PE 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 Shiller PE Ratio Chart

McKesson Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.90 50.23 71.96 56.75 66.78

McKesson Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Shiller PE Ratio 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 62.80 61.01 61.66 66.78 68.23

Competitive Comparison of McKesson's Shiller PE Ratio

For the Medical Distribution subindustry, McKesson's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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's Shiller PE Ratio Distribution in the Medical Distribution Industry

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

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



McKesson Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

McKesson's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=500.59/8.56
=58.48

* 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 E10 for the quarter that ended in Jun. 2024 is calculated as:

For example, McKesson's adjusted earnings per share data for the three months ended in Jun. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Jun. 2024 (Change)*Current CPI (Jun. 2024)
=7/132.5538*132.5538
=7.000

Current CPI (Jun. 2024) = 132.5538.

McKesson Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201409 1.990 100.428 2.627
201412 2.000 99.070 2.676
201503 0.560 99.621 0.745
201506 2.450 100.684 3.226
201509 2.630 100.392 3.473
201512 2.730 99.792 3.626
201603 1.880 100.470 2.480
201606 2.380 101.688 3.102
201609 1.340 101.861 1.744
201612 2.850 101.863 3.709
201703 16.760 102.862 21.598
201706 1.450 103.349 1.860
201709 0.010 104.136 0.013
201712 4.330 104.011 5.518
201803 -5.580 105.290 -7.025
201806 -0.680 106.317 -0.848
201809 2.510 106.507 3.124
201812 2.400 105.998 3.001
201903 -4.170 107.251 -5.154
201906 2.240 108.070 2.747
201909 -3.990 108.329 -4.882
201912 1.030 108.420 1.259
202003 5.850 108.902 7.121
202006 2.720 108.767 3.315
202009 3.540 109.815 4.273
202012 -39.030 109.897 -47.077
202103 4.150 111.754 4.922
202106 3.070 114.631 3.550
202109 1.710 115.734 1.959
202112 -0.040 117.630 -0.045
202203 2.470 121.301 2.699
202206 5.260 125.017 5.577
202209 6.420 125.227 6.796
202212 7.660 125.222 8.109
202303 5.710 127.348 5.943
202306 7.020 128.729 7.229
202309 4.920 129.860 5.022
202312 4.420 129.419 4.527
202403 6.020 131.776 6.056
202406 7.000 132.554 7.000

Add all the adjusted EPS together and divide 10 will get our E10.

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) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


McKesson Shiller PE Ratio Related Terms

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


McKesson Business Description

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
Brian S. Tyler officer: Chief Executive Officer MCKESSON CORPORATION, 6555 STATE HWY 161, IRVING TX 75039
Leann B Smith officer: EVP & Chief HR Officer 6555 NORTH STATE HWY 161, IRVING TX 75039
Maria Martinez director THE LANDMARK @ 1 MARKET STREET, SUITE 300, SAN FRANCISCO CA 94105
Thomas L Rodgers officer: EVP, Chief Strategy & BDO 6555 NORTH STATE HWY 161, IRVING TX 75039
Britt J. Vitalone officer: EVP & CFO MCKESSON CORPORATION, 6555 STATE HWY 161, IRVING TX 75039
Susan Nowakowski director 14778 EL RODEO CT., RANCHO SANTA FE CA 92067
Rutledge Napoleon B Jr officer: SVP, Controller & CAO 2999 WILDWOOD PARKWAY, ATLANTA GA 30339
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