Is McKesson Corporation (MCK) Undervalued?
Based on the current stock price of $828.26 and a P/E ratio of 25.91,McKesson Corporation has a PEG ratio of 1.52.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 1.52, MCK appears to be fairly valued relative to its growth rate of 17.02%.
Based on a PEG ratio of 1.49 (adjusted for dividends).
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How we analyzed MCK
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 25.91and dividing it by the annual growth rate of 17.02%.
PEG = 25.91 (P/E) ÷ 17.02 (Growth) = 1.52
Frequently Asked Questions about MCK
What is the current PEG Ratio for McKesson Corporation (MCK)?+
The current PEG Ratio for McKesson Corporation is 1.52. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is MCK stock undervalued right now?+
Based on the PEG ratio of 1.52, McKesson Corporation appears to be fairly valued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for MCK?+
The PEGY ratio for McKesson Corporation is 1.49. This metric accounts for dividend yield (0.40%), providing a more complete valuation picture.