Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

McKesson Corp., FCFE calculation

US$ in millions

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)
Net (income) loss attributable to noncontrolling interests	52)	67)	(5)	—)	—)	—)
Net noncash charges	1,466)	2,179)	1,370)	1,108)	1,087)	834)
Changes in operating assets and liabilities, net of acquisitions	(104)	(610)	508)	37)	460)	302)
Net cash provided by operating activities	3,672)	3,112)	3,136)	2,483)	2,950)	2,338)
Payments for property, plant and equipment	(488)	(376)	(278)	(246)	(225)	(233)
Capitalized software expenditures	(189)	(169)	(141)	(160)	(178)	(155)
Proceeds from short-term borrowings	1,561)	3,100)	6,145)	2,225)	400)	1,000)
Repayments of short-term borrowings	(1,688)	(3,152)	(6,122)	(2,625)	—)	(1,000)
Proceeds from issuances of long-term debt	—)	3)	4,114)	1,798)	—)	1,689)
Repayments of long-term debt	(1,598)	(353)	(356)	(1,143)	(430)	(1,730)
Free cash flow to equity (FCFE)	1,270)	2,165)	6,498)	2,332)	2,517)	1,909)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to McKesson Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	McKesson Corp. FCFE decreased from 2014 to 2015 and from 2015 to 2016.

Price to FCFE Ratio, Current

McKesson Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	226,086,960
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,270)
FCFE per share	5.62
Current share price (P)	160.50
Valuation Ratio
P/FCFE	28.57
Benchmarks
P/FCFE, Competitors¹
Abbott Laboratories	71.48
Cigna Group	9.89
CVS Health Corp.	3.82
Elevance Health Inc.	16.86
Humana Inc.	10.69
Intuitive Surgical Inc.	183.91
Medtronic PLC	27.31
Shockwave Medical Inc.	16.02
UnitedHealth Group Inc.	15.41

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

¹ Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

McKesson Corp., historical P/FCFE calculation, comparison to benchmarks

	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
No. shares of common stock outstanding¹	225,020,523	231,553,531	230,576,753	226,611,092	235,397,188	252,120,037
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,270)	2,165)	6,498)	2,332)	2,517)	1,909)
FCFE per share³	5.64	9.35	28.18	10.29	10.69	7.57
Share price^1, 4	172.70	229.55	178.20	108.63	90.17	82.84
Valuation Ratio
P/FCFE⁵	30.60	24.55	6.32	10.56	8.43	10.94
Benchmarks
P/FCFE, Competitors⁶
Abbott Laboratories	—	—	—	—	—	—
Cigna Group	—	—	—	—	—	—
CVS Health Corp.	—	—	—	—	—	—
Elevance Health Inc.	—	—	—	—	—	—
Humana Inc.	—	—	—	—	—	—
Intuitive Surgical Inc.	—	—	—	—	—	—
Medtronic PLC	—	—	—	—	—	—
Shockwave Medical Inc.	—	—	—	—	—	—
UnitedHealth Group Inc.	—	—	—	—	—	—

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2016 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,270,000,000 ÷ 225,020,523 = 5.64

⁴ Closing price as at the filing date of McKesson Corp. Annual Report.

⁵ 2016 Calculation
P/FCFE = Share price ÷ FCFE per share
= 172.70 ÷ 5.64 = 30.60

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	McKesson Corp. P/FCFE ratio increased from 2014 to 2015 and from 2015 to 2016.

McKesson Corp. (NYSE:MCK)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical