Stock Analysis on Net

McKesson Corp. (NYSE:MCK)

This company has been moved to the archive! The financial data has not been updated since October 27, 2016.

Enterprise Value to EBITDA (EV/EBITDA)

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

McKesson Corp., EBITDA calculation

US$ in millions

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12 months ended: Mar 31, 2016 Mar 31, 2015 Mar 31, 2014 Mar 31, 2013 Mar 31, 2012 Mar 31, 2011
Net income attributable to McKesson Corporation 2,258 1,476 1,263 1,338 1,403 1,202
Add: Net income attributable to noncontrolling interest 52 67 (5)
Less: Income (loss) from discontinued operations, net of tax (32) (299) (96) 72
Add: Income tax expense 908 815 742 581 516 505
Earnings before tax (EBT) 3,250 2,657 2,096 1,919 1,919 1,635
Add: Interest expense 353 374 303 240 251 222
Earnings before interest and tax (EBIT) 3,603 3,031 2,399 2,159 2,170 1,857
Add: Depreciation 281 306 186 146 140 139
Add: Amortization 604 711 518 445 411 357
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,488 4,048 3,103 2,750 2,721 2,353

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).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. McKesson Corp. EBITDA increased from 2014 to 2015 and from 2015 to 2016.

Enterprise Value to EBITDA Ratio, Current

McKesson Corp., current EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 40,477
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,488
Valuation Ratio
EV/EBITDA 9.02
Benchmarks
EV/EBITDA, Competitors1
Abbott Laboratories 19.94
Cigna Group 11.05
CVS Health Corp. 7.03
Elevance Health Inc. 8.42
Humana Inc. 5.39
Intuitive Surgical Inc. 74.98
Medtronic PLC 16.19
UnitedHealth Group Inc. 16.07

Based on: 10-K (reporting date: 2016-03-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

McKesson Corp., historical EV/EBITDA calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2016 Mar 31, 2015 Mar 31, 2014 Mar 31, 2013 Mar 31, 2012 Mar 31, 2011
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 43,051 57,740 49,411 27,034 22,057 21,278
Earnings before interest, tax, depreciation and amortization (EBITDA)2 4,488 4,048 3,103 2,750 2,721 2,353
Valuation Ratio
EV/EBITDA3 9.59 14.26 15.92 9.83 8.11 9.04
Benchmarks
EV/EBITDA, Competitors4
Abbott Laboratories
Cigna Group
CVS Health Corp.
Elevance Health Inc.
Humana Inc.
Intuitive Surgical Inc.
Medtronic PLC
UnitedHealth Group Inc.

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).

1 See details »

2 See details »

3 2016 Calculation
EV/EBITDA = EV ÷ EBITDA
= 43,051 ÷ 4,488 = 9.59

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. McKesson Corp. EV/EBITDA ratio decreased from 2014 to 2015 and from 2015 to 2016.