Discounted Cash Flow

McKesson Corp.

MCK · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $198.5b $5.1b $4.3b 2.6% $22.95
2018 $208.4b (4.9%) $67.0m (-98.7%) $3.9b (-9.2%) 0.0% (-98.7%) $0.32 (-98.6%)
2019 $214.3b (2.9%) $34.0m (-49.3%) $3.6b (-8.4%) 0.0% (-50.7%) $0.17 (-46.9%)
2020 $231.1b (7.8%) $900.0m (2547.1%) $4.0b (11.1%) 0.4% (2355.4%) $4.98 (2829.4%)
2021 $238.2b (3.1%) $-4.5b (-604.3%) $4.1b (2.0%) -1.9% (-589.1%) $-28.26 (-667.5%)
2022 $264.0b (10.8%) $1.1b (124.5%) $4.0b (-1.1%) 0.4% (122.1%) $7.32 (125.9%)
2023 $276.7b (4.8%) $3.6b (219.6%) $4.8b (17.9%) 1.3% (204.9%) $25.23 (244.7%)
2024 $309.0b (11.7%) $3.0b (-15.7%) $3.9b (-18.6%) 1.0% (-24.5%) $22.54 (-10.7%)
2025 $359.1b (16.2%) $3.3b (9.8%) $5.5b (42.9%) 0.9% (-5.6%) $25.86 (14.7%)
2026 $403.4b (12.4%) $4.8b (44.5%) $5.7b (3.1%) 1.2% (28.6%) $38.55 (49.1%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model