Merck Historical Valuation

MRK
 Stock
  

USD 87.41  0.59  0.68%   

Some fundamental drivers such as market cap or Merck enterprice value can be analyzed from historical perspective to project value of the company into the future. Some investors analyze Merck Company valuation indicators such as Earnings Before Interest Taxes and Depreciation Amortization EBITDA of 15.4 B or Earnings before Tax of 12.8 B to time the market or to short-sell their positions based on the trend in valuation ratios. It is a perfect tool to project the direction of Merck's future value. Financial Statement Analysis is much more than just reviewing and breaking down Merck Company prevalent accounting reports to predict its past. Macroaxis encourages investors to analyze financial statements over time for various trends across multiple indicators and accounts to determine whether Merck Company is a good buy for the upcoming year.
Additionally, see Stocks Correlation.
  

About Merck Valuation Data Analysis

Valuation is the financial process of determining what Merck is worth. Merck valuation ratios put that insight into the context of a company's share price, where they serve as useful tools for evaluating and utilizing investment potential. Merck valuation ratios help investors to determine whether Merck Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Merck with respect to the benefits of owning Merck security.

Merck Valuation Data Chart

Merck valuation ratios help to determine how cheap or expensive it is, compared to its peers or based on some benchmark measure of value for a given date. A typical valuation ratio shows the difference between the cost of Merck equity instrument and the benefits of owning shares of Merck Company.
Merck Invested Capital is increasing as compared to previous years. The last year's value of Invested Capital was reported at 62.63 Billion. The current Market Capitalization is estimated to increase to about 198.8 B, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to under 15.4 B.

Average Assets

Average asset value for the period used in calculation of Return on Average Equity and Return on Average Assets; derived from Total Assets.

Enterprise Value

Enterprise Value (or EV) is usually referred to as Merck theoretical takeover price. In the event of an acquisition, an acquirer would have to take on Merck Company debt, but would also pocket its cash. Enterprise Value is more accurate representation of Merck value than its market capitalization because it takes into account all of Merck Company existing debt. Enterprise value is a measure of the value of a business as a whole; calculated as Market Capitalization plus Total Debt USD minus Cash and Equivalents USD.

Market Capitalization

Market capitalization (or market cap) is the total value of the shares outstanding of Merck Company. It is equal to Merck current share price times the number of Merck Company outstanding shares. Represents the product of [SharesBas]; [Price] and [ShareFactor].
Most indicators from Merck valuation accounts are interrelated and interconnected. However, analyzing valuation accounts indicators one by one will only give a small insight into Merck Company current financial condition. On the other hand, looking into the entire matrix of valuation accounts indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Additionally, see Stocks Correlation.Merck Invested Capital is increasing as compared to previous years. The last year's value of Invested Capital was reported at 62.63 Billion. The current Market Capitalization is estimated to increase to about 198.8 B, while Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to decrease to under 15.4 B.
 2019 2020 2021 2022 (projected)
Revenue Per Employee659.72 K646.8 K716.24 K628.91 K
Net Income Per Employee138.63 K95.24 K191.9 K207.05 K

Merck valuation accounts Correlations

Merck Account Relationship Matchups

Merck valuation accounts Accounts

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 Investors Sentiment

The influence of Merck's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Merck. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Merck's public news can be used to forecast risks associated with investment in Merck. The trend in average sentiment can be used to explain how an investor holding Merck can time the market purely based on public headlines and social activities around Merck Company. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Merck's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Merck's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Merck's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Merck.

Merck Implied Volatility

    
  22.02  
Merck's implied volatility exposes the market's sentiment of Merck Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Merck's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Merck stock will not fluctuate a lot when Merck's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Merck in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Merck's short interest history, or implied volatility extrapolated from Merck options trading.

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Additionally, see Stocks Correlation. 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

Complementary Tools for Merck Stock analysis

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
221.4 B
Quarterly Revenue Growth YOY
0.28
Return On Assets
0.12
Return On Equity
0.41
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.