MRK Relative Valuation
MRK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MRK is overvalued; if below, it's undervalued.
Historical Valuation
Merck & Co Inc (MRK) is now in the Fair zone, suggesting that its current forward PE ratio of 12.15 is considered Fairly compared with the five-year average of 16.88. The fair price of Merck & Co Inc (MRK) is between 52.03 to 251.19 according to relative valuation methord.
Relative Value
Fair Zone
52.03-251.19
Current Price：102.27
Fair
11.98
PE
1Y
3Y
5Y
Trailing
Forward
8.93
EV/EBITDA
Merck & Co Inc. (MRK) has a current EV/EBITDA of 8.93. The 5-year average EV/EBITDA is 11.57. The thresholds are as follows: Strongly Undervalued below 1.52, Undervalued between 1.52 and 6.55, Fairly Valued between 16.60 and 6.55, Overvalued between 16.60 and 21.62, and Strongly Overvalued above 21.62. The current Forward EV/EBITDA of 8.93 falls within the Historic Trend Line -Fairly Valued range.
10.23
EV/EBIT
Merck & Co Inc. (MRK) has a current EV/EBIT of 10.23. The 5-year average EV/EBIT is 14.04. The thresholds are as follows: Strongly Undervalued below -2.96, Undervalued between -2.96 and 5.54, Fairly Valued between 22.54 and 5.54, Overvalued between 22.54 and 31.04, and Strongly Overvalued above 31.04. The current Forward EV/EBIT of 10.23 falls within the Historic Trend Line -Fairly Valued range.
3.81
PS
Merck & Co Inc. (MRK) has a current PS of 3.81. The 5-year average PS is 4.07. The thresholds are as follows: Strongly Undervalued below 2.89, Undervalued between 2.89 and 3.48, Fairly Valued between 4.66 and 3.48, Overvalued between 4.66 and 5.25, and Strongly Overvalued above 5.25. The current Forward PS of 3.81 falls within the Historic Trend Line -Fairly Valued range.
10.28
P/OCF
Merck & Co Inc. (MRK) has a current P/OCF of 10.28. The 5-year average P/OCF is 12.44. The thresholds are as follows: Strongly Undervalued below 6.16, Undervalued between 6.16 and 9.30, Fairly Valued between 15.57 and 9.30, Overvalued between 15.57 and 18.71, and Strongly Overvalued above 18.71. The current Forward P/OCF of 10.28 falls within the Historic Trend Line -Fairly Valued range.
10.73
P/FCF
Merck & Co Inc. (MRK) has a current P/FCF of 10.73. The 5-year average P/FCF is 15.02. The thresholds are as follows: Strongly Undervalued below 5.10, Undervalued between 5.10 and 10.06, Fairly Valued between 19.98 and 10.06, Overvalued between 19.98 and 24.94, and Strongly Overvalued above 24.94. The current Forward P/FCF of 10.73 falls within the Historic Trend Line -Fairly Valued range.
Merck & Co Inc (MRK) has a current Price-to-Book (P/B) ratio of 4.91. Compared to its 3-year average P/B ratio of 6.11 , the current P/B ratio is approximately -19.72% higher. Relative to its 5-year average P/B ratio of 6.08, the current P/B ratio is about -19.28% higher. Merck & Co Inc (MRK) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.97%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 4.81% , the current FCF yield is about -100.00% lower.
4.84
P/B
Median3y
6.11
Median5y
6.08
5.14
FCF Yield
Median3y
4.97
Median5y
4.81
Competitors Valuation Multiple
The average P/S ratio for MRK's competitors is 4.66, providing a benchmark for relative valuation. Merck & Co Inc Corp (MRK) exhibits a P/S ratio of , which is -100.00% above the industry average. Given its robust revenue growth of 3.72%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of MRK increased by 1.42% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 18.98 to 33.50.
The secondary factor is the Revenue Growth, contributed 3.72%to the performance.
Overall, the performance of MRK in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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