McKesson Corp., current enterprise value calculation

Current share price (P)	$160.50
No. shares of common stock outstanding	226,086,960
US$ in millions
Common equity (market value)¹	36,287)
Add: Preferred stock, $0.01 par value, no shares issued or outstanding (per books)	—)
Add: Noncontrolling interests (per books)	84)
Total equity	36,371)
Add: Short-term borrowings (per books)	7)
Add: Current portion of long-term debt (per books)	1,612)
Add: Long-term debt, excluding current portion (per books)	6,535)
Total equity and debt	44,525)
Less: Cash and cash equivalents	4,048)
Enterprise value (EV)	40,477)

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 160.50 × 226,086,960

McKesson Corp., EV calculation

	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
Share price^1, 2	$172.70	$229.55	$178.20	$108.63	$90.17	$82.84
No. shares of common stock outstanding¹	225,020,523	231,553,531	230,576,753	226,611,092	235,397,188	252,120,037
US$ in millions
Common equity (market value)³	38,861)	53,153)	41,089)	24,617)	21,226)	20,886)
Add: Preferred stock, $0.01 par value, no shares issued or outstanding (book value)	—)	—)	—)	—)	—)	—)
Add: Noncontrolling interests (book value)	84)	84)	1,796)	—)	—)	—)
Total equity	38,945)	53,237)	42,885)	24,617)	21,226)	20,886)
Add: Short-term borrowings (book value)	7)	135)	346)	—)	400)	—)
Add: Current portion of long-term debt (book value)	1,612)	1,529)	1,424)	352)	508)	417)
Add: Long-term debt, excluding current portion (book value)	6,535)	8,180)	8,949)	4,521)	3,072)	3,587)
Total equity and debt	47,099)	63,081)	53,604)	29,490)	25,206)	24,890)
Less: Cash and cash equivalents	4,048)	5,341)	4,193)	2,456)	3,149)	3,612)
Enterprise value (EV)	43,051)	57,740)	49,411)	27,034)	22,057)	21,278)

¹ Data adjusted for splits and stock dividends.

² Closing price as at the filing date of McKesson Corp. Annual Report.

³ 2016 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 172.70 × 225,020,523

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Item	Description	The company
EV	Enterprise value is total company value (the market value of common equity, debt, and preferred equity) minus the value of cash and short-term investments.	McKesson Corp. EV increased from 2014 to 2015 but then decreased significantly from 2015 to 2016.

McKesson Corp. (NYSE:MCK)

Enterprise Value (EV)