Price to Sales (P/S)
since 2005
Calculation
McKesson Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| May 5, 2016 | 0.20 | = | 172.70 | ÷ | 848.30 | 848.30 | = | 190,884 | ÷ | 225,020,523 | |
| May 12, 2015 | 0.30 | = | 229.55 | ÷ | 773.23 | 773.23 | = | 179,045 | ÷ | 231,553,531 | |
| May 14, 2014 | 0.30 | = | 178.20 | ÷ | 596.80 | 596.80 | = | 137,609 | ÷ | 230,576,753 | |
| May 7, 2013 | 0.20 | = | 108.63 | ÷ | 540.38 | 540.38 | = | 122,455 | ÷ | 226,611,092 | |
| May 2, 2012 | 0.17 | = | 90.17 | ÷ | 521.39 | 521.39 | = | 122,734 | ÷ | 235,397,188 | |
| May 5, 2011 | 0.19 | = | 82.84 | ÷ | 444.57 | 444.57 | = | 112,084 | ÷ | 252,120,037 | |
| May 4, 2010 | 0.17 | = | 67.54 | ÷ | 400.54 | 400.54 | = | 108,702 | ÷ | 271,391,624 | |
| May 5, 2009 | 0.10 | = | 38.18 | ÷ | 392.87 | 392.87 | = | 106,632 | ÷ | 271,418,501 | |
| May 7, 2008 | 0.16 | = | 57.36 | ÷ | 366.79 | 366.79 | = | 101,703 | ÷ | 277,279,250 | |
| May 9, 2007 | 0.19 | = | 59.78 | ÷ | 312.84 | 312.84 | = | 92,977 | ÷ | 297,204,662 | |
| May 16, 2006 | 0.17 | = | 49.37 | ÷ | 289.52 | 289.52 | = | 88,050 | ÷ | 304,120,397 | |
| May 13, 2005 | 0.14 | = | 37.68 | ÷ | 268.40 | 268.40 | = | 80,515 | ÷ | 299,979,779 |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of McKesson Corp. Annual Report.
The analysis of the financial data reveals several notable trends in the share price, sales per share, and price-to-sales (P/S) ratio over the eleven-year period.
- Share Price
- The share price demonstrates an overall upward trajectory despite some fluctuations. Beginning at $37.68 in 2005, it increased steadily to reach a peak of $229.55 in 2015. However, in the final observed year, 2016, there was a decline to $172.70. The share price experienced periods of volatility, for example, a sharp fall from $57.36 in 2008 to $38.18 in 2009, followed by consistent growth until 2015.
- Sales Per Share
- Sales per share show consistent growth throughout the period. Starting at $268.40 in 2005, the figure rose continuously each year, reaching $848.30 by 2016. This steady increase indicates strong revenue expansion relative to the number of shares outstanding. No periods of decline are evident, underscoring sustained operational performance and business growth.
- Price-to-Sales (P/S) Ratio
- The P/S ratio exhibits more variability compared to sales per share. It started at 0.14 in 2005, increased to a high of 0.3 in 2014 and 2015, indicating improved market valuation relative to sales, and then declined to 0.2 in 2016. The dip in 2009 to 0.1 corresponds with the share price decline during the same period despite increasing sales per share, suggesting market concerns or external factors impacting valuation.
In summary, the data portrays robust sales growth underpinning the financial health, while the share price generally reflects this growth, with some volatility likely influenced by broader market conditions. The price-to-sales ratio movements indicate fluctuating market sentiment regarding valuation, with particularly notable dips during market downturns and recovery periods.
Comparison to Competitors
McKesson Corp., P/S, long-term trends, comparison to competitors
| McKesson Corp. | Abbott Laboratories | CVS Health Corp. | Elevance Health Inc. | Intuitive Surgical Inc. | Medtronic PLC | UnitedHealth Group Inc. | |
|---|---|---|---|---|---|---|---|
| May 5, 2016 | 0.20 | 3.70 | 0.45 | 0.51 | 10.11 | 4.07 | 0.83 |
| May 12, 2015 | 0.30 | 2.78 | 0.65 | 0.42 | 8.46 | 5.36 | 0.68 |
| May 14, 2014 | 0.30 | 3.53 | 0.82 | 0.54 | 8.80 | 3.74 | 0.80 |
| May 7, 2013 | 0.20 | 2.74 | 0.64 | 0.35 | 6.76 | 3.13 | 0.57 |
| May 2, 2012 | 0.17 | 1.38 | 0.51 | 0.31 | 10.56 | 2.36 | 0.53 |
| May 5, 2011 | 0.19 | 2.27 | 0.54 | 0.37 | 11.00 | 2.60 | 0.55 |
| May 4, 2010 | 0.17 | 2.06 | 0.47 | 0.44 | 9.15 | 2.48 | 0.50 |
| May 5, 2009 | 0.10 | 2.74 | 0.48 | 0.43 | 12.01 | 2.54 | 0.44 |
| May 7, 2008 | 0.16 | 2.83 | 0.43 | 0.33 | 5.14 | 4.30 | 0.43 |
| May 9, 2007 | 0.19 | 3.31 | 0.76 | 0.67 | 19.21 | 4.74 | 0.81 |
| May 16, 2006 | 0.17 | 3.68 | 0.60 | 0.89 | 11.23 | 4.81 | 1.03 |
| May 13, 2005 | 0.14 | 3.02 | 0.68 | 1.14 | 15.19 | 6.30 | 1.78 |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Sector (Health Care Equipment & Services)
McKesson Corp., P/S, long-term trends, comparison to sector (health care equipment & services)
| McKesson Corp. | Health Care Equipment & Services | |
|---|---|---|
| May 5, 2016 | 0.20 | 1.00 |
| May 12, 2015 | 0.30 | 0.98 |
| May 14, 2014 | 0.30 | 1.08 |
| May 7, 2013 | 0.20 | 0.84 |
| May 2, 2012 | 0.17 | 0.73 |
| May 5, 2011 | 0.19 | 0.88 |
| May 4, 2010 | 0.17 | 0.80 |
| May 5, 2009 | 0.10 | 0.84 |
| May 7, 2008 | 0.16 | 0.87 |
| May 9, 2007 | 0.19 | 1.26 |
| May 16, 2006 | 0.17 | 1.42 |
| May 13, 2005 | 0.14 | 1.82 |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Industry (Health Care)
McKesson Corp., P/S, long-term trends, comparison to industry (health care)
| McKesson Corp. | Health Care | |
|---|---|---|
| May 5, 2016 | 0.20 | 2.29 |
| May 12, 2015 | 0.30 | 2.30 |
| May 14, 2014 | 0.30 | 2.62 |
| May 7, 2013 | 0.20 | 2.38 |
| May 2, 2012 | 0.17 | 1.87 |
| May 5, 2011 | 0.19 | 1.66 |
| May 4, 2010 | 0.17 | 1.57 |
| May 5, 2009 | 0.10 | 1.77 |
| May 7, 2008 | 0.16 | 1.47 |
| May 9, 2007 | 0.19 | 2.14 |
| May 16, 2006 | 0.17 | 2.60 |
| May 13, 2005 | 0.14 | 2.90 |
Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).