Is McKesson Corp. overvalued or undervalued?

As of 2 February 2021, McKesson Corp. has moved from an attractive to a risky valuation grade, indicating a shift in investor sentiment. The company is currently overvalued, as reflected by its high P/E ratio of 56, which significantly exceeds the industry average, and a PEG ratio of 16.19, suggesting that growth expectations are not justified by current earnings. Additionally, the negative price-to-book value of -84.94 and negative return on capital employed further highlight the company's financial challenges.
In comparison to its peers, McKesson's P/E ratio of 57.12 is notably higher than Cardinal Health, Inc.'s P/E of 28.26, which is categorized as risky, and Boston Scientific Corp.'s P/E of 85.99, which is deemed very expensive. The EV to EBITDA ratio for McKesson stands at 36.93, again higher than Cardinal Health's 16.11, reinforcing the notion of overvaluation. Despite recent stock performance showing a 26.66% year-to-date return compared to the S&P 500's 2.44%, the underlying financial metrics suggest that McKesson Corp. is not a sound investment at its current price level.