Earnings Analysis for Cencora

Using my the numbers from the 2025 annual report I have these base numbers.
2025 Diluted EPS: 7.95
5 year growth rate: 11%
5 year P/E: 31
Discount Rate: 5%



The sum of all discounted EPS puts this at a valuation of 374. With the current price trading at $340.

I am still unsure about discounting rate. I have seen Buffett talk about the 10 year treasury note as the discount rate. That currently sits at ~4.1%, I added a margin of safety and bumped it to 5%. I still do not feel comfortable as I am unsure about my assumptions in doing that. Any further explanations of this value would be appreciated. I understand it conceptually, that I am discounting future earnings, but not practically as in what rate to select and why.

Sentiment: Bullish but still lots to learn