| Company name | McKesson Corporation |
| Stock ticker | MCK |
| Live stock price | [stckqut]MCK[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Good |
| Sales growth | Fair |
| EPS growth | Poor |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $310.15 |
| Target stock price (averages with growth) | $353.01 |
| Target stock price (averages with no growth) | $164.7 |
| Target stock price (manual assumptions) | $305.8 |
The following company description is from Google Finance: http://www.google.com/finance?q=mck
McKesson Corporation delivers pharmaceuticals, medical supplies and healthcare information technologies. The Company operates in two segments: McKesson Distribution Solutions segment and McKesson Technology Solutions segment. The McKesson Distribution Solutions segment distributes drugs, medical-surgical supplies and equipment and health and beauty care products throughout North America. The McKesson Technology Solutions segment delivers enterprise clinical, patient care, financial, supply chain, strategic management software solutions, pharmacy automation for hospitals, as well as connectivity, outsourcing and other services, including remote hosting and managed services, to healthcare organizations. In February 2013, the Company completed acquisition of Pss World Medical Inc. In February 2014, McKesson Corporation announced that its ownership in Celesio AG exceeds 75% interest.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in McKesson Corporation.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of McKesson Corporation calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $210.99
- Growth: 0.19
- Current EPS (TTM): $6.07
- P/E: 34
- Future EPS Calc: $14.48
- Future Stock Price Calc: $492.49
- Target stock price: $305.8
I hope that this makes you a better investor. [/s2If]