Merck Fundamentals

MRK
 Stock
  

USD 90.59  0.81  0.89%   

Merck Company fundamentals help investors to digest information that contributes to Merck's financial success or failures. It also enables traders to predict the movement of Merck Stock. The fundamental analysis module provides a way to measure Merck's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Merck stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Merck Income Tax Expense is increasing as compared to previous years. The last year's value of Income Tax Expense was reported at 1.52 Billion.

Merck Price to Earnings To Growth Analysis

Merck's PEG Ratio indicates the potential value of an equity instrument and is calculated by dividing Price to Earnings (P/E) ratio into earnings growth rate. Most analysts and investors prefer this measure to a Price to Earnings (P/E) ratio because it incorporates the future growth of a firm. The low PEG ratio usually implies that an equity instrument is undervalued; whereas PEG of 1 may indicate that an equity is reasonably priced under given expectations of future growth.
PEG Ratio 
 = 
PE Ratio 
EPS Growth 
More About Price to Earnings To Growth | All Equity Analysis

Current Merck Price to Earnings To Growth

    
  1.16 X  
Most of Merck's fundamental indicators, such as Price to Earnings To Growth, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Merck Company is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Generally speaking, PEG ratio is a 'quick and dirty' way to measure how the current price of a firm's stock relates to its earnings and growth rate. The main benefit of using PEG ratio is that investors can compare the relative valuations of companies within different industries without analyzing their P/E ratios.
Compare to competition

Based on the latest financial disclosure, the price to earnings to growth indicator of Merck Company is roughly 1.16 times. This is 63.38% higher than that of the Healthcare sector and significantly higher than that of the Drug Manufacturers—General industry. The price to earnings to growth for all United States stocks is 76.28% higher than that of the company.

Merck Company Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Merck's current stock value. Our valuation model uses many indicators to compare Merck value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Merck competition to find correlations between indicators driving Merck's intrinsic value. More Info.
Merck Company is considered to be number one stock in ebitda category among related companies. It is considered to be number one stock in cash per share category among related companies . The ratio of EBITDA to Cash per Share for Merck Company is about  6,796,033,994 . Merck Earnings Before Interest Taxes and Depreciation Amortization EBITDA are decreasing as compared to previous years. The last year's value of Earnings Before Interest Taxes and Depreciation Amortization EBITDA was reported at 17.78 Billion. Comparative valuation analysis is a catch-all model that can be used if you cannot value Merck by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Merck's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Merck's earnings, one of the primary drivers of an investment's value.

Merck Shares Outstanding Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Merck's direct or indirect competition against its Shares Outstanding to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Merck could also be used in its relative valuation, which is a method of valuing Merck by comparing valuation metrics of similar companies.
Merck is currently under evaluation in shares outstanding category among related companies.

Merck Current Valuation Drivers

We derive many important indicators used in calculating different scores of Merck from analyzing Merck's financial statements. These drivers represent accounts that assess Merck's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Merck's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee34.7 K90.14 K138.63 K95.24 K191.9 K207.05 K
Revenue Per Employee581.48 K612.96 K659.72 K646.8 K716.24 K628.91 K
Average Assets92.23 B84.71 B83.51 B89.23 B95.18 B90.87 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA11.17 B13.25 B14.72 B11.89 B17.78 B15.38 B
Earnings Before Interest Taxes and Depreciation Amortization USD11.17 B13.25 B14.72 B11.89 B17.78 B15.38 B
Earnings before Tax6.5 B8.73 B11.41 B8.41 B14.57 B12.83 B
Average Equity37.97 B31.33 B26.98 B27.09 B33.55 B34.99 B
Enterprise Value172.4 B214.46 B249.78 B228.34 B210.01 B216 B
Free Cash Flow4.56 B8.31 B10.07 B5.82 B9.66 B8.68 B
Invested Capital55.11 B46.22 B45.23 B55.02 B62.63 B64.9 B
Invested Capital Average56.97 B52.05 B49.43 B51.65 B56.24 B52.86 B
Market Capitalization153.3 B198.69 B231.56 B206.96 B193.59 B198.81 B
Tangible Asset Value55.41 B51.28 B50.78 B58.6 B61.5 B57.51 B
Working Capital6.15 B3.67 B5.26 B437 M6.39 B7.63 B

Merck ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Merck's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Merck's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Merck Fundamentals

About Merck Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Merck Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Merck using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Merck Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Cost of Revenue13.6 B13.4 B
Revenues48.7 B43.7 B
Revenue to Assets 0.46  0.44 
Revenue Per Employee716.2 K628.9 K

Be your own money manager

Our tools can tell you how much better you can do entering a position in Merck without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Additionally, see Merck Piotroski F Score and Merck Altman Z Score analysis. Note that the Merck Company information on this page should be used as a complementary analysis to other Merck's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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When running Merck Company price analysis, check to measure Merck's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck is operating at the current time. Most of Merck's value examination focuses on studying past and present price action to predict the probability of Merck's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Merck's price. Additionally, you may evaluate how the addition of Merck to your portfolios can decrease your overall portfolio volatility.
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Is Merck's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
1.54
Market Capitalization
229.5 B
Quarterly Revenue Growth YOY
0.28
Return On Assets
0.13
Return On Equity
0.43
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine Merck value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.