Merck & Co., Inc.

SWX:MRK Stock Report

Market Cap: CHF 235.2b

Merck Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

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

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: MRK (CHF121.19) is trading below our estimate of future cash flow value (CHF270.46)

Significantly Below Future Cash Flow Value: MRK is trading below future cash flow value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MRK. This is calculated by dividing MRK's market cap by their current earnings.
What is MRK's PE Ratio?
PE Ratio33x
EarningsUS$8.94b
Market CapUS$295.19b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MRK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average39.3x
ROP Roche Holding
19.7x8.20%CHF 254.2b
NOVN Novartis
20x9.64%CHF 216.7b
GALD Galderma Group
79.3x24.31%CHF 38.8b
SDZ Sandoz Group
38.3x17.04%CHF 28.0b
MRK Merck
33x21.21%CHF 295.2b

Price-To-Earnings vs Peers: MRK is good value based on its Price-To-Earnings Ratio (33x) compared to the peer average (39.6x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MRK 33.0xIndustry Avg. 20.9xNo. of Companies10PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MRK is expensive based on its Price-To-Earnings Ratio (33x) compared to the European Pharmaceuticals industry average (20.9x).

Price to Earnings Ratio vs Fair Ratio

What is MRK'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.

MRK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio33x
Fair PE Ratio60.9x

Price-To-Earnings vs Fair Ratio: MRK is good value based on its Price-To-Earnings Ratio (33x) compared to the estimated Fair Price-To-Earnings Ratio (60.9x).

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 MRK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
CHF 103.37
0%
10.81%CHF 119.52CHF 79.68n/a27
Jun ’27CHF 121.19
CHF 102.06
-15.79%
10.81%CHF 117.99CHF 78.66n/a27
May ’27n/a
CHF 101.42
0%
10.81%CHF 117.25CHF 78.17n/a27
Apr ’27n/a
CHF 101.93
0%
10.73%CHF 119.21CHF 79.47n/a27
Mar ’27n/a
CHF 97.77
0%
9.98%CHF 115.32CHF 76.88n/a28
Feb ’27n/a
CHF 90.89
0%
11.18%CHF 104.36CHF 66.48n/a26
Jan ’27CHF 83.85
CHF 87.16
+3.95%
14.20%CHF 110.10CHF 65.74n/a26
Dec ’26CHF 84.67
CHF 84.79
+0.14%
14.33%CHF 111.87CHF 66.00n/a26
Nov ’26CHF 400.00
CHF 81.71
-79.57%
14.47%CHF 110.24CHF 65.98n/a24
Oct ’26CHF 400.00
CHF 80.87
-79.78%
14.96%CHF 112.23CHF 65.27n/a25
Sep ’26CHF 400.00
CHF 80.97
-79.76%
13.54%CHF 113.71CHF 66.13n/a24
Aug ’26CHF 400.00
CHF 80.84
-79.79%
13.54%CHF 113.52CHF 66.02n/a24
Jul ’26CHF 400.00
CHF 81.41
-79.65%
12.88%CHF 110.37CHF 65.58n/a24
Jun ’26CHF 400.00
CHF 83.74
-79.06%
12.88%CHF 113.54CHF 67.46CHF 121.1924
May ’26CHF 400.00
CHF 87.12
-78.22%
11.99%CHF 114.48CHF 68.03n/a23
Apr ’26CHF 400.00
CHF 99.05
-75.24%
11.93%CHF 129.05CHF 83.97n/a22
Mar ’26CHF 400.00
CHF 102.73
-74.32%
12.22%CHF 131.81CHF 85.77n/a23
Feb ’26CHF 400.00
CHF 112.73
-71.82%
11.41%CHF 136.40CHF 90.94n/a24
Jan ’26CHF 400.00
CHF 114.95
-71.26%
11.31%CHF 138.42CHF 89.30CHF 83.8525
Dec ’25CHF 400.00
CHF 114.75
-71.31%
10.60%CHF 136.47CHF 88.05CHF 84.6725
Nov ’25CHF 400.00
CHF 116.28
-70.93%
7.90%CHF 134.94CHF 95.77CHF 400.0027
Oct ’25CHF 400.00
CHF 116.88
-70.78%
5.84%CHF 130.31CHF 100.88CHF 400.0026
Sep ’25CHF 400.00
CHF 118.36
-70.41%
5.89%CHF 131.78CHF 102.03CHF 400.0026
Aug ’25CHF 101.21
CHF 123.30
+21.82%
5.54%CHF 135.41CHF 104.83CHF 400.0026
Jul ’25CHF 400.00
CHF 128.18
-67.96%
5.31%CHF 139.24CHF 107.80CHF 400.0025
Jun ’25CHF 400.00
CHF 128.01
-68.00%
6.14%CHF 139.85CHF 106.46CHF 400.0025
CHF 131.56
Fair Value
7.9% undervalued intrinsic discount
27
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/09 23:50
End of Day Share Price 2026/05/27 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

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.

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 Github.

Analyst Sources

Merck & Co., Inc. is covered by 48 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
David ToungArgus Research Company
Charles ButlerBarclays
Emily FieldBarclays