Stock Analysis on Net

Merck & Co. Inc. (NYSE:MRK)

Common Stock Valuation Ratios (Price Multiples) 

Microsoft Excel

Current Valuation Ratios

Merck & Co. Inc., current price multiples

Microsoft Excel
Merck & Co. Inc. AbbVie Inc. Amgen Inc. Bristol-Myers Squibb Co. Danaher Corp. Eli Lilly & Co. Gilead Sciences Inc. Johnson & Johnson Pfizer Inc. Regeneron Pharmaceuticals Inc. Thermo Fisher Scientific Inc. Vertex Pharmaceuticals Inc. Pharmaceuticals, Biotechnology & Life Sciences Health Care
Selected Financial Data
Current share price (P) $77.85
No. shares of common stock outstanding 2,526,036,240
Growth rate (g) -100.45%
 
Earnings per share (EPS) $6.78
Next year expected EPS $-0.03
Operating profit per share $7.88
Sales per share $25.40
Book value per share (BVPS) $18.33
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 11.49 70.22 35.95 33.90 73.24 270.68 26.86 15.55 13.91 25.12 41.17 34.08
Price to operating profit (P/OP) 9.88 32.88 20.26 27.18 60.13 78.18 18.16 10.06 15.38 21.69 28.38 23.80
Price to sales (P/S) 3.06 5.33 4.59 2.06 5.54 17.22 4.54 4.25 1.96 4.32 3.71 11.13 5.06 2.39
Price to book value (P/BV) 4.25 90.34 25.02 6.08 2.67 54.65 6.72 5.28 1.42 2.09 3.21 7.47 6.41 5.03

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

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Merck & Co. Inc., historical price multiples

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Price to earnings (P/E) 13.49 893.99 19.21 14.78 26.72
Price to operating profit (P/OP) 11.60 138.56 15.55 15.39 23.89
Price to sales (P/S) 3.60 5.43 4.71 3.96 3.93
Price to book value (P/BV) 4.99 8.68 6.07 5.05 7.46

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).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Merck & Co. Inc. P/E ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Merck & Co. Inc. P/OP ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Merck & Co. Inc. P/S ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Merck & Co. Inc. P/BV ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Price to Earnings (P/E)

Merck & Co. Inc., historical P/E 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$)
Net income attributable to Merck & Co., Inc. (in millions) 17,117 365 14,519 13,049 7,067
Earnings per share (EPS)2 6.78 0.14 5.72 5.16 2.79
Share price1, 3 91.43 128.84 109.89 76.32 74.62
Valuation Ratio
P/E ratio4 13.49 893.99 19.21 14.78 26.72
Benchmarks
P/E Ratio, Competitors5
AbbVie Inc. 79.59 63.84 22.62 22.07 40.17
Amgen Inc. 38.24 23.14 19.56 21.05 18.82
Bristol-Myers Squibb Co. 12.27 23.97 20.92
Danaher Corp. 38.12 39.09 25.65 29.94 44.49
Eli Lilly & Co. 77.63 135.24 50.08 40.66 31.95
Gilead Sciences Inc. 296.57 16.17 22.68 12.36 641.48
Johnson & Johnson 26.92 10.73 22.97 20.93 28.92
Pfizer Inc. 18.42 73.42 7.58 11.76 19.62
Regeneron Pharmaceuticals Inc. 17.76 25.99 19.68 8.37 15.09
Thermo Fisher Scientific Inc. 32.03 35.65 30.55 27.35 27.89
Vertex Pharmaceuticals Inc. 30.42 23.02 26.55 20.18
P/E Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 45.15 32.80 20.23 19.27 34.89
P/E Ratio, Industry
Health Care 37.14 29.43 21.38 21.35 30.75

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 2024 Calculation
EPS = Net income attributable to Merck & Co., Inc. ÷ No. shares of common stock outstanding
= 17,117,000,000 ÷ 2,526,036,240 = 6.78

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

4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 91.43 ÷ 6.78 = 13.49

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Merck & Co. Inc. P/E ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Price to Operating Profit (P/OP)

Merck & Co. Inc., historical P/OP 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$)
Operating income (in millions) 19,912 2,355 17,945 12,538 7,905
Operating profit per share2 7.88 0.93 7.07 4.96 3.12
Share price1, 3 91.43 128.84 109.89 76.32 74.62
Valuation Ratio
P/OP ratio4 11.60 138.56 15.55 15.39 23.89
Benchmarks
P/OP Ratio, Competitors5
AbbVie Inc. 37.26 24.34 14.78 14.21 16.32
Amgen Inc. 21.55 19.69 13.40 16.24 14.96
Bristol-Myers Squibb Co. 13.53 18.29 19.84
Danaher Corp. 30.56 35.64 20.97 25.14 36.91
Eli Lilly & Co. 63.73 109.75 43.88 35.70 32.66
Gilead Sciences Inc. 85.65 12.05 14.21 7.76 19.38
Johnson & Johnson 18.20 17.78 17.62 18.68 21.84
Pfizer Inc. 11.92 121.63 6.64 12.74 21.12
Regeneron Pharmaceuticals Inc. 19.63 25.39 18.01 7.55 14.82
Thermo Fisher Scientific Inc. 27.65 31.16 25.30 21.07 22.81
Vertex Pharmaceuticals Inc. 28.74 17.75 22.35 19.16
P/OP Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 31.13 32.68 15.94 16.68 25.95
P/OP Ratio, Industry
Health Care 25.94 25.66 16.51 17.67 22.32

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 2024 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 19,912,000,000 ÷ 2,526,036,240 = 7.88

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

4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 91.43 ÷ 7.88 = 11.60

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Merck & Co. Inc. P/OP ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Price to Sales (P/S)

Merck & Co. Inc., historical P/S 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$)
Sales (in millions) 64,168 60,115 59,283 48,704 47,994
Sales per share2 25.40 23.74 23.35 19.27 18.97
Share price1, 3 91.43 128.84 109.89 76.32 74.62
Valuation Ratio
P/S ratio4 3.60 5.43 4.71 3.96 3.93
Benchmarks
P/S Ratio, Competitors5
AbbVie Inc. 6.04 5.72 4.61 4.53 4.05
Amgen Inc. 4.88 5.78 5.17 5.10 5.64
Bristol-Myers Squibb Co. 2.36 2.19 3.29 3.16 3.16
Danaher Corp. 6.23 7.76 5.79 6.37 7.01
Eli Lilly & Co. 18.25 20.77 10.96 8.01 8.06
Gilead Sciences Inc. 4.98 3.40 3.86 2.85 3.24
Johnson & Johnson 4.26 4.43 4.34 4.66 5.15
Pfizer Inc. 2.32 2.61 2.35 3.15 4.42
Regeneron Pharmaceuticals Inc. 5.52 7.84 7.01 4.20 6.24
Thermo Fisher Scientific Inc. 4.73 4.99 4.73 5.39 5.52
Vertex Pharmaceuticals Inc. 10.78 11.16 8.56 8.21 8.82
P/S Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.55 5.89 4.56 4.50 4.90
P/S Ratio, Industry
Health Care 2.61 2.72 2.48 2.65 2.59

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 2024 Calculation
Sales per share = Sales ÷ No. shares of common stock outstanding
= 64,168,000,000 ÷ 2,526,036,240 = 25.40

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

4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 91.43 ÷ 25.40 = 3.60

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Merck & Co. Inc. P/S ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Price to Book Value (P/BV)

Merck & Co. Inc., historical P/BV 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$)
Total Merck & Co., Inc. stockholders’ equity (in millions) 46,313 37,581 45,991 38,184 25,317
Book value per share (BVPS)2 18.33 14.84 18.12 15.11 10.01
Share price1, 3 91.43 128.84 109.89 76.32 74.62
Valuation Ratio
P/BV ratio4 4.99 8.68 6.07 5.05 7.46
Benchmarks
P/BV Ratio, Competitors5
AbbVie Inc. 102.40 29.97 15.52 16.53 14.18
Amgen Inc. 26.61 24.94 35.01 18.51 14.53
Bristol-Myers Squibb Co. 6.98 3.35 4.88 4.07 3.55
Danaher Corp. 3.00 3.47 3.64 4.16 3.93
Eli Lilly & Co. 57.93 65.80 29.36 25.28 35.07
Gilead Sciences Inc. 7.36 4.01 4.90 3.65 4.33
Johnson & Johnson 5.30 5.48 5.37 5.90 6.72
Pfizer Inc. 1.68 1.75 2.48 3.35 2.98
Regeneron Pharmaceuticals Inc. 2.67 3.96 3.77 3.60 4.81
Thermo Fisher Scientific Inc. 4.09 4.57 4.83 5.18 5.15
Vertex Pharmaceuticals Inc. 7.24 6.26 5.50 6.16 6.30
P/BV Ratio, Sector
Pharmaceuticals, Biotechnology & Life Sciences 7.03 6.77 5.66 5.72 5.99
P/BV Ratio, Industry
Health Care 5.48 5.44 4.90 5.07 4.90

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 2024 Calculation
BVPS = Total Merck & Co., Inc. stockholders’ equity ÷ No. shares of common stock outstanding
= 46,313,000,000 ÷ 2,526,036,240 = 18.33

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

4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 91.43 ÷ 18.33 = 4.99

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. Merck & Co. Inc. P/BV ratio increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.