Merck KGaA's (ETR:MRK) Intrinsic Value Is Potentially 48% Above Its Share Price
May 22
German (DAX) Market Analysis & Valuation
UpdatedMay 23, 2024
DataAggregated Company Financials
Companies733
- 7D-1.7%
- 3M3.4%
- 1Y6.2%
- YTD5.7%
The market has been flat in the last week, however the Consumer Discretionary sector is down 4.0%. Meanwhile, the market is actually up 4.5% over the past year. Earnings are forecast to grow by 19% annually.
Market Valuation and Performance
Has the German Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 23 May 2024 | €2.3t | €2.7t | €110.8b | 17.6x | 20.4x | 0.8x |
| Sat, 20 Apr 2024 | €2.2t | €2.8t | €119.0b | 17.3x | 18.7x | 0.8x |
| Mon, 18 Mar 2024 | €2.2t | €2.8t | €122.2b | 16.4x | 18.3x | 0.8x |
| Wed, 14 Feb 2024 | €2.1t | €2.9t | €152.2b | 16.1x | 14.1x | 0.8x |
| Fri, 12 Jan 2024 | €2.1t | €2.9t | €146.5b | 16.2x | 14.6x | 0.7x |
| Sun, 10 Dec 2023 | €2.2t | €2.9t | €147.6b | 16.1x | 14.6x | 0.8x |
| Tue, 07 Nov 2023 | €2.0t | €2.9t | €161.2b | 15.9x | 12.5x | 0.7x |
| Thu, 05 Oct 2023 | €2.1t | €3.0t | €131.2b | 15.7x | 15.7x | 0.7x |
| Sat, 02 Sep 2023 | €2.1t | €3.0t | €130.4b | 16.2x | 16.4x | 0.7x |
| Mon, 31 Jul 2023 | €2.2t | €3.0t | €136.9b | 17x | 16.3x | 0.7x |
| Wed, 28 Jun 2023 | €2.1t | €3.0t | €140.4b | 17.3x | 15.2x | 0.7x |
| Fri, 26 May 2023 | €2.1t | €3.0t | €136.9b | 17.1x | 15.7x | 0.7x |
| Sun, 23 Apr 2023 | €2.2t | €3.0t | €147.1b | 17.2x | 15.2x | 0.7x |
| Tue, 21 Mar 2023 | €2.1t | €2.9t | €147.8b | 16.1x | 14.1x | 0.7x |
| Thu, 16 Feb 2023 | €2.1t | €2.6t | €174.3b | 16.1x | 12.3x | 0.8x |
| Sat, 14 Jan 2023 | €2.1t | €2.6t | €173.0b | 16.2x | 12.1x | 0.8x |
| Mon, 12 Dec 2022 | €2.0t | €2.6t | €173.3b | 16.1x | 11.4x | 0.8x |
| Wed, 09 Nov 2022 | €1.9t | €2.6t | €169.6b | 15x | 11.2x | 0.7x |
| Fri, 07 Oct 2022 | €1.8t | €2.5t | €168.9b | 14.2x | 10.6x | 0.7x |
| Sun, 04 Sep 2022 | €1.8t | €2.5t | €162.5b | 15.3x | 11x | 0.7x |
| Tue, 02 Aug 2022 | €1.9t | €2.6t | €159.2b | 16.7x | 12x | 0.7x |
| Thu, 30 Jun 2022 | €1.8t | €2.6t | €159.4b | 16.3x | 11.5x | 0.7x |
| Sat, 28 May 2022 | €2.1t | €2.6t | €159.5b | 17.5x | 13x | 0.8x |
| Mon, 25 Apr 2022 | €2.1t | €2.5t | €143.4b | 18.8x | 14.6x | 0.8x |
| Wed, 23 Mar 2022 | €2.2t | €2.5t | €145.0b | 19.3x | 15x | 0.9x |
| Fri, 18 Feb 2022 | €2.3t | €2.4t | €142.5b | 20.1x | 16x | 1x |
| Sun, 16 Jan 2022 | €2.4t | €2.4t | €144.4b | 21.4x | 16.5x | 1x |
| Tue, 14 Dec 2021 | €2.4t | €2.3t | €141.3b | 20.2x | 16.7x | 1x |
| Thu, 11 Nov 2021 | €2.4t | €2.4t | €125.3b | 22.9x | 19.3x | 1x |
| Sat, 09 Oct 2021 | €2.3t | €2.2t | €114.6b | 22.3x | 20.1x | 1x |
| Mon, 06 Sep 2021 | €2.5t | €2.4t | €127.4b | 22.8x | 19.6x | 1x |
| Wed, 04 Aug 2021 | €2.4t | €2.2t | €115.3b | 21.8x | 20.4x | 1x |
Price to Earnings Ratio
34.7x
Current Market PE
- Investors are optimistic on the German market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 20.5x which is higher than its 3-year average PE of 15.7x.
Past Earnings Growth
- The earnings for German listed companies have grown 19% per year over the last three years.
- Revenues for these companies have grown 8.1% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the German Market?
| DE Market | -1.67% | |
| Financials | 1.68% | |
| Tech | 1.32% | |
| Consumer Staples | 0.71% | |
| Telecom | 0.091% | |
| Real Estate | -0.85% | |
| Healthcare | -1.29% | |
| Materials | -1.77% | |
| Utilities | -2.15% | |
| Energy | -2.35% | |
| Industrials | -4.09% | |
| Consumer Discretionary | -5.06% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth, which is trading above its 3-year average PE ratio of 59.5x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 20.4% which is higher than its past year's earnings decline of 6.1% per year.
Forecasted Growth
- Analysts are most optimistic on the Real Estate sector, expecting annual earnings growth of 96% over the next 5 years.
- This is better than its past earnings growth rate of 0.4% per year.
- In contrast, the Financials sector is expected to see its earnings grow by 6.7% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| SAP SAP | €179.32 | 1.8% +€3.7b | 49.2% | PE80.8x | Tech | |
| MUV2 Münchener Rückversicherungs-Gesellschaft in München | €461.50 | 3.5% +€2.1b | 39.8% | PE11.3x | Financials | |
| ALV Allianz | €266.60 | 1.3% +€1.3b | 29.5% | PE11.7x | Financials | |
| MRK Merck KGaA | €168.50 | 1.6% +€1.2b | 2.7% | PE26.9x | Healthcare | |
| TLX Talanx | €72.80 | 5.4% +€967.7m | 49.3% | PE10.9x | Financials |
