Merck & Co., Inc.

DB:6MK Stock Report

Market Cap: €237.0b

Merck Valuation

Is 6MK undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 6MK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 6MK (€93.1) is trading below our estimate of fair value (€285.09)

Significantly Below Fair Value: 6MK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 6MK?

Key metric: As 6MK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 6MK. This is calculated by dividing 6MK's market cap by their current earnings.
What is 6MK's PE Ratio?
PE Ratio20.5x
EarningsUS$12.15b
Market CapUS$249.17b

Price to Earnings Ratio vs Peers

How does 6MK's PE Ratio compare to its peers?

The above table shows the PE ratio for 6MK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.3x
MRK Merck KGaA
24.2x10.7%€63.7b
DMP Dermapharm Holding
22x19.8%€1.8b
ROG Roche Holding
19.6x11.1%CHF 210.3b
AZN AstraZeneca
31.1x18.0%UK£159.6b
6MK Merck
20.5x15.5%€249.2b

Price-To-Earnings vs Peers: 6MK is good value based on its Price-To-Earnings Ratio (20.5x) compared to the peer average (24.3x).

Price to Earnings Ratio vs Industry

How does 6MK's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
6MK 20.5xIndustry Avg. 21.2xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 6MK is good value based on its Price-To-Earnings Ratio (20.5x) compared to the European Pharmaceuticals industry average (21.2x).

Price to Earnings Ratio vs Fair Ratio

What is 6MK'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.

6MK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.5x
Fair PE Ratio28x

Price-To-Earnings vs Fair Ratio: 6MK is good value based on its Price-To-Earnings Ratio (20.5x) compared to the estimated Fair Price-To-Earnings Ratio (28x).

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 6MK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€93.10
€125.29
+34.6%
9.3%€147.44€95.12n/a27
Nov ’25€94.40
€123.25
+30.6%
7.9%€143.03€101.51n/a27
Oct ’25€101.80
€125.94
+23.7%
5.8%€140.41€108.71n/a26
Sep ’25€107.00
€125.96
+17.7%
5.9%€140.24€108.58n/a26
Aug ’25€105.40
€130.79
+24.1%
5.5%€143.64€111.20n/a26
Jul ’25€119.40
€131.21
+9.9%
5.3%€142.54€110.35n/a25
Jun ’25€115.40
€130.63
+13.2%
6.1%€142.71€108.64n/a25
May ’25€121.20
€132.39
+9.2%
6.1%€144.97€110.37n/a26
Apr ’25€122.60
€125.81
+2.6%
5.7%€136.71€105.30n/a25
Mar ’25€117.80
€123.62
+4.9%
7.6%€136.90€95.28n/a26
Feb ’25€114.60
€117.51
+2.5%
7.6%€128.80€94.76n/a27
Jan ’25€98.30
€112.58
+14.5%
7.0%€123.66€94.35n/a28
Dec ’24€95.20
€112.66
+18.3%
6.8%€123.04€93.87n/a28
Nov ’24€97.00
€116.52
+20.1%
6.6%€127.16€97.02€94.4027
Oct ’24€97.00
€114.95
+18.5%
6.8%€126.35€96.40€101.8027
Sep ’24€100.60
€113.44
+12.8%
7.2%€124.79€89.67€107.0028
Aug ’24€97.30
€112.24
+15.3%
7.0%€122.92€88.32€105.4028
Jul ’24€104.20
€112.30
+7.8%
8.0%€123.69€88.87€119.4026
Jun ’24€103.80
€114.56
+10.4%
8.3%€126.78€90.42€115.4027
May ’24€104.40
€112.18
+7.5%
9.6%€141.28€88.42€121.2028
Apr ’24€98.00
€110.70
+13.0%
10.9%€142.89€88.50€122.6027
Mar ’24€100.20
€113.06
+12.8%
10.8%€146.23€90.57€117.8026
Feb ’24€98.00
€108.16
+10.4%
9.3%€125.11€89.23€114.6024
Jan ’24€104.40
€107.34
+2.8%
9.5%€128.19€91.43€98.3024
Dec ’23€104.20
€105.38
+1.1%
6.9%€120.18€93.26€95.2023
Nov ’23€101.40
€106.74
+5.3%
9.1%€126.53€86.04€97.0022

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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