Stock Analysis on Net
Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Price to FCFE (P/FCFE) 

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Free Cash Flow to Equity (FCFE)

Merck & Co. Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income attributable to Merck & Co., Inc. 17,117 365 14,519 13,049 7,067
Net income attributable to noncontrolling interests 16 12 7 13 15
Net noncash charges 8,002 14,834 7,351 3,899 7,761
Net changes in assets and liabilities (3,667) (2,205) (2,782) (3,839) (4,590)
Net cash provided by operating activities 21,468 13,006 19,095 13,122 10,253
Capital expenditures (3,372) (3,863) (4,388) (4,448) (4,684)
Net change in short-term borrowings — — — (3,986) 2,549
Payments on debt (1,290) (1,755) (2,251) (2,319) (1,957)
Proceeds from issuance of debt 3,599 5,939 — 7,936 4,419
Free cash flow to equity (FCFE) 20,405 13,327 12,456 10,305 10,580

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Merck & Co. Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Merck & Co. Inc. FCFE increased from 2022 to 2023 and from 2023 to 2024.

Price to FCFE Ratio, Current

Merck & Co. Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 2,526,036,240
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 20,405
FCFE per share 8.08
Current share price (P) 89.23
Valuation Ratio
P/FCFE 11.05
Benchmarks
P/FCFE, Competitors1
AbbVie Inc. 14.45
Amgen Inc. 26.88
Bristol-Myers Squibb Co. 5.07
Danaher Corp. 40.42
Eli Lilly & Co. 61.60
Gilead Sciences Inc. 11.80
Johnson & Johnson 13.19
Pfizer Inc. 53.39
Regeneron Pharmaceuticals Inc. 18.91
Thermo Fisher Scientific Inc. 38.34
Vertex Pharmaceuticals Inc. —
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 19.86
P/FCFE, Industry
Health Care 18.31

Based on: 10-K (reporting date: 2024-12-31).

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

Merck & Co. Inc., historical P/FCFE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
No. shares of common stock outstanding1 2,526,036,240 2,532,643,872 2,538,592,467 2,527,733,606 2,530,315,668
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 20,405 13,327 12,456 10,305 10,580
FCFE per share3 8.08 5.26 4.91 4.08 4.18
Share price1, 4 91.43 128.84 109.89 76.32 74.62
Valuation Ratio
P/FCFE5 11.32 24.48 22.40 18.72 17.85
Benchmarks
P/FCFE, Competitors6
AbbVie Inc. 13.57 17.37 22.66 18.76 13.16
Amgen Inc. 25.50 4.71 8.32 13.52 11.06
Bristol-Myers Squibb Co. 4.74 7.52 22.85 16.17 7.80
Danaher Corp. 40.83 53.08 32.04 20.75 44.62
Eli Lilly & Co. 64.93 75.06 60.51 35.17 36.62
Gilead Sciences Inc. 12.07 12.81 15.22 12.70 5.98
Johnson & Johnson 12.67 24.31 16.73 23.28 15.60
Pfizer Inc. 55.28 3.82 10.56 8.88 —
Regeneron Pharmaceuticals Inc. 21.27 26.52 19.29 10.35 13.30
Thermo Fisher Scientific Inc. 41.23 31.16 27.98 13.44 18.58
Vertex Pharmaceuticals Inc. — 33.45 19.91 26.08 18.46
P/FCFE, Sector
Pharmaceuticals, Biotechnology & Life Sciences 19.99 16.91 19.28 16.49 17.09
P/FCFE, Industry
Health Care 18.23 16.85 18.12 17.81 17.23

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 20,405,000,000 ÷ 2,526,036,240 = 8.08

4 Closing price as at the filing date of Merck & Co. Inc. Annual Report.

5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 91.43 ÷ 8.08 = 11.32

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Merck & Co. Inc. P/FCFE ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.