Merck & Co., Inc.

SNSE:MRKCL Stock Report

Market Cap: CL$242.7t

Merck Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 MRKCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRKCL (CLP99470) is trading below our estimate of fair value (CLP250704.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MRKCL. This is calculated by dividing MRKCL's market cap by their current earnings.
What is MRKCL's PE Ratio?
PE Ratio20.5x
EarningsUS$12.15b
Market CapUS$248.81b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MRKCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.3x
ROG Roche Holding
19.6x11.1%CHF 210.3b
AZN AstraZeneca
31.1x18.0%UK£159.6b
NOVN Novartis
17.7x7.0%CHF 185.4b
JNJ Johnson & Johnson
24.8x10.3%US$368.9b
MRKCL Merck
20.5x15.5%CL$248.8b

Price-To-Earnings vs Peers: MRKCL is good value based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (23.3x).

Price to Earnings Ratio vs Industry

How does MRKCL's PE Ratio compare vs other companies in the Global Pharmaceuticals Industry?

26 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MRKCL 20.5xIndustry Avg. 23.4xNo. of Companies77PE01632486480+
26 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MRKCL is good value based on its Price-To-Earnings Ratio (20.5x) compared to the Global Pharmaceuticals industry average (23.4x).

Price to Earnings Ratio vs Fair Ratio

What is MRKCL'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.

MRKCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.5x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MRKCL'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 MRKCL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCL$99,470.00
CL$128,981.14
+29.7%
9.3%CL$151,782.20CL$97,924.00n/a27
Nov ’25CL$99,470.00
CL$128,324.45
+29.0%
7.9%CL$148,924.00CL$105,688.00n/a27
Oct ’25CL$106,200.00
CL$131,226.06
+23.6%
5.8%CL$146,304.50CL$113,268.00n/a26
Sep ’25CL$106,200.00
CL$127,231.05
+19.8%
5.9%CL$141,654.50CL$109,668.00n/a26
Aug ’25CL$124,000.00
CL$134,420.95
+8.4%
5.5%CL$147,623.55CL$114,289.20n/a26
Jul ’25CL$124,000.00
CL$129,726.82
+4.6%
5.3%CL$140,926.78CL$109,104.60n/a25
Jun ’25CL$120,487.00
CL$127,253.92
+5.6%
6.1%CL$139,024.15CL$105,837.74n/a25
May ’25CL$120,487.00
CL$135,935.51
+12.8%
6.1%CL$148,858.90CL$113,324.84n/a26
Apr ’25CL$119,100.00
CL$133,463.39
+12.1%
5.7%CL$145,020.76CL$111,705.18n/a25
Mar ’25CL$123,720.00
CL$128,675.85
+4.0%
7.6%CL$142,495.88CL$99,169.43n/a26
Feb ’25CL$108,870.00
CL$119,057.68
+9.4%
7.6%CL$130,491.20CL$96,004.24n/a27
Jan ’25CL$91,813.00
CL$107,448.45
+17.0%
7.0%CL$118,023.75CL$90,047.75n/a28
Dec ’24CL$93,618.00
CL$107,414.64
+14.7%
6.8%CL$117,308.25CL$89,501.85n/a28
Nov ’24CL$93,618.00
CL$112,252.99
+19.9%
6.6%CL$122,496.30CL$93,460.14CL$99,470.0027
Oct ’24CL$93,618.00
CL$108,653.45
+16.1%
6.8%CL$119,426.40CL$91,117.92CL$106,200.0027
Sep ’24CL$93,618.00
CL$104,989.41
+12.1%
7.2%CL$115,493.85CL$82,984.47CL$106,200.0028
Aug ’24CL$77,794.00
CL$103,618.96
+33.2%
7.0%CL$113,481.00CL$81,538.20CL$124,000.0028
Jul ’24CL$77,794.00
CL$98,116.70
+26.1%
8.0%CL$108,060.75CL$77,643.65CL$124,000.0026
Jun ’24CL$77,794.00
CL$98,186.99
+26.2%
8.3%CL$108,662.64CL$77,502.03CL$120,487.0027
May ’24CL$77,794.00
CL$99,257.11
+27.6%
9.6%CL$125,007.50CL$78,230.50CL$120,487.0028
Apr ’24CL$77,794.00
CL$95,723.05
+23.0%
10.9%CL$123,566.00CL$76,531.20CL$119,100.0027
Mar ’24CL$77,794.00
CL$96,776.96
+24.4%
10.8%CL$125,164.05CL$77,520.96CL$123,720.0026
Feb ’24CL$77,794.00
CL$93,615.14
+20.3%
9.3%CL$108,277.76CL$77,227.52CL$108,870.0024
Jan ’24CL$77,794.00
CL$98,188.72
+26.2%
9.5%CL$117,266.00CL$83,638.25CL$91,813.0024
Dec ’23CL$77,794.00
CL$100,521.04
+29.2%
6.9%CL$114,636.25CL$88,957.73CL$93,618.0023
Nov ’23CL$77,794.00
CL$99,754.73
+28.2%
9.1%CL$118,243.75CL$80,405.75CL$93,618.0022

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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