Merck KGaA

BRSE:MER Stock Report

Market Cap: CHF 60.1b

Merck KGaA Valuation

Is MER undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MER when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CHF 301.49
Fair Value
56.0% undervalued intrinsic discount
16
Number of Analysts

Below Fair Value: MER (CHF132.78) is trading below our estimate of fair value (CHF301.49)

Significantly Below Fair Value: MER is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MER?

Key metric: As MER is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MER. This is calculated by dividing MER's market cap by their current earnings.
What is MER's PE Ratio?
PE Ratio23.6x
Earnings€2.70b
Market Cap€63.65b

Price to Earnings Ratio vs Peers

How does MER's PE Ratio compare to its peers?

The above table shows the PE ratio for MER vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.9x
NOVN Novartis
17.9x7.3%CHF 191.1b
ROG Roche Holding
21.4x10.2%CHF 229.3b
DESN Dottikon ES Holding
40.1xn/aCHF 3.0b
COPN Cosmo Pharmaceuticals
16.1x21.5%CHF 1.1b
MER Merck KGaA
23.6x10.3%CHF 63.7b

Price-To-Earnings vs Peers: MER is good value based on its Price-To-Earnings Ratio (23.6x) compared to the peer average (23.9x).

Price to Earnings Ratio vs Industry

How does MER's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
MER 23.6xIndustry Avg. 22.0xNo. of Companies11PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MER is expensive based on its Price-To-Earnings Ratio (23.6x) compared to the European Pharmaceuticals industry average (22x).

Price to Earnings Ratio vs Fair Ratio

What is MER's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MER PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.6x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MER's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MER forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
CHF 173.00
0%
6.2%CHF 196.36CHF 151.05n/a16
Jan ’26CHF 130.26
CHF 170.91
+31.2%
5.7%CHF 185.09CHF 148.82n/a16
Dec ’25CHF 132.01
CHF 170.91
+29.5%
5.7%CHF 185.09CHF 148.82n/a16
Nov ’25n/a
CHF 174.02
0%
5.6%CHF 187.62CHF 150.10n/a16
Oct ’25CHF 146.45
CHF 177.72
+21.4%
5.2%CHF 194.64CHF 156.67n/a17
Sep ’25n/a
CHF 177.24
0%
5.0%CHF 190.65CHF 157.28n/a16
Aug ’25n/a
CHF 172.52
0%
5.9%CHF 188.54CHF 155.55n/a16
Jul ’25CHF 150.32
CHF 176.81
+17.6%
6.1%CHF 191.73CHF 153.38n/a16
Jun ’25n/a
CHF 182.34
0%
6.9%CHF 202.26CHF 157.86n/a16
May ’25CHF 147.03
CHF 178.59
+21.5%
6.9%CHF 196.26CHF 152.10n/a16
Apr ’25n/a
CHF 176.46
0%
7.6%CHF 204.03CHF 150.59n/a16
Mar ’25CHF 151.40
CHF 167.68
+10.7%
7.8%CHF 187.09CHF 144.99n/a16
Feb ’25n/a
CHF 169.25
0%
9.3%CHF 200.43CHF 139.83n/a16
Jan ’25n/a
CHF 174.60
0%
9.5%CHF 203.19CHF 141.76CHF 130.2616
Dec ’24n/a
CHF 182.88
0%
8.4%CHF 211.68CHF 159.73CHF 132.0116
Nov ’24n/a
CHF 181.19
0%
8.5%CHF 211.05CHF 159.25n/a16
Oct ’24n/a
CHF 190.83
0%
5.9%CHF 212.50CHF 165.17CHF 146.4516
Sep ’24n/a
CHF 187.33
0%
5.9%CHF 211.09CHF 164.07n/a17
Aug ’24n/a
CHF 189.72
0%
6.2%CHF 210.85CHF 163.89n/a17
Jul ’24n/a
CHF 199.76
0%
6.0%CHF 214.84CHF 166.99CHF 150.3215
Jun ’24n/a
CHF 198.28
0%
6.2%CHF 218.43CHF 166.01n/a16
May ’24n/a
CHF 202.16
0%
8.7%CHF 244.64CHF 154.61CHF 147.0316
Apr ’24n/a
CHF 206.61
0%
8.8%CHF 248.89CHF 157.30n/a16
Mar ’24n/a
CHF 207.83
0%
9.7%CHF 248.92CHF 157.32CHF 151.4017
Feb ’24n/a
CHF 209.38
0%
9.5%CHF 250.56CHF 158.35n/a17
Analyst Price Target
Consensus Narrative from 16 Analysts
CHF 166.20
Fair Value
20.1% undervalued intrinsic discount
16
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/01 20:27
End of Day Share Price 2025/01/13 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Merck KGaA is covered by 60 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Martin SchneeAlphaValue
Gerhard SchwarzBaader Helvea Equity Research
Odile RundquistBaader Helvea Equity Research