Merck KGaA

BIT:1MRK Stock Report

Market Cap: €60.9b

Merck KGaA Valuation

Is 1MRK 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 1MRK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 1MRK (€139.6) is trading below our estimate of fair value (€288.21)

Significantly Below Fair Value: 1MRK is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1MRK?

Key metric: As 1MRK is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1MRK. This is calculated by dividing 1MRK's market cap by their current earnings.
What is 1MRK's PE Ratio?
PE Ratio22.6x
Earnings€2.70b
Market Cap€60.87b

Price to Earnings Ratio vs Peers

How does 1MRK's PE Ratio compare to its peers?

The above table shows the PE ratio for 1MRK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.4x
REC Recordati Industria Chimica e Farmaceutica
24.2x11.5%€10.2b
GSK GSK
21.3x22.4%UK£53.5b
4519 Chugai Pharmaceutical
27.4x6.3%JP¥10.6t
ZTS Zoetis
32.8x9.9%US$79.0b
1MRK Merck KGaA
22.6x10.7%€60.9b

Price-To-Earnings vs Peers: 1MRK is good value based on its Price-To-Earnings Ratio (22.6x) compared to the peer average (26.4x).

Price to Earnings Ratio vs Industry

How does 1MRK's PE Ratio compare vs other companies in the European Pharmaceuticals Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
1MRK 22.6xIndustry Avg. 20.6xNo. of Companies7PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1MRK is expensive based on its Price-To-Earnings Ratio (22.6x) compared to the European Pharmaceuticals industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is 1MRK'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.

1MRK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.6x
Fair PE Ratio39.9x

Price-To-Earnings vs Fair Ratio: 1MRK is good value based on its Price-To-Earnings Ratio (22.6x) compared to the estimated Fair Price-To-Earnings Ratio (39.9x).

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 1MRK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€139.60
€184.88
+32.4%
5.7%€200.00€160.00n/a16
Nov ’25€154.65
€185.50
+19.9%
5.6%€200.00€160.00n/a16
Oct ’25€155.60
€187.18
+20.3%
5.2%€205.00€165.00n/a17
Sep ’25€176.45
€185.94
+5.4%
5.0%€200.00€165.00n/a16
Aug ’25€167.80
€183.00
+9.1%
5.9%€200.00€165.00n/a16
Jul ’25€151.85
€184.44
+21.5%
6.1%€200.00€160.00n/a16
Jun ’25€166.65
€184.81
+10.9%
6.9%€205.00€160.00n/a16
May ’25€149.65
€182.00
+21.6%
6.9%€200.00€155.00n/a16
Apr ’25€163.70
€181.63
+10.9%
7.6%€210.00€155.00n/a16
Mar ’25€158.50
€179.25
+13.1%
7.8%€200.00€155.00n/a16
Feb ’25€150.15
€181.56
+20.9%
9.3%€215.00€150.00n/a16
Jan ’25€150.25
€184.75
+23.0%
9.5%€215.00€150.00n/a16
Dec ’24€159.30
€190.06
+19.3%
8.4%€220.00€166.00n/a16
Nov ’24€143.10
€188.88
+32.0%
8.5%€220.00€166.00€154.6516
Oct ’24€157.50
€197.56
+25.4%
5.9%€220.00€171.00€155.6016
Sep ’24€167.65
€195.24
+16.5%
5.9%€220.00€171.00€176.4517
Aug ’24€161.20
€197.95
+22.8%
6.2%€220.00€171.00€167.8017
Jul ’24€151.55
€204.56
+35.0%
6.0%€220.00€171.00€151.8515
Jun ’24€163.00
€204.24
+25.3%
6.2%€225.00€171.00€166.6516
May ’24€159.30
€206.59
+29.7%
8.7%€250.00€158.00€149.6516
Apr ’24€171.80
€207.53
+20.8%
8.8%€250.00€158.00€163.7016
Mar ’24€176.95
€208.74
+18.0%
9.7%€250.00€158.00€158.5017
Feb ’24€181.80
€208.91
+14.9%
9.5%€250.00€158.00€150.1517
Jan ’24€182.50
€207.21
+13.5%
9.3%€250.00€158.00€150.2517
Dec ’23€178.50
€205.86
+15.3%
9.6%€250.00€158.00€159.3018
Nov ’23€163.65
€203.97
+24.6%
10.7%€250.00€146.00€143.1018

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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