Merck & Co., Inc.

BMV:MRK * Stock Report

Market Cap: Mex$5.0t

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

Below Fair Value: MRK * (MX$2045) is trading below our estimate of fair value (MX$4554.49)

Significantly Below Fair Value: MRK * is trading below fair 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 Ratio20.8x
EarningsUS$12.15b
Market CapUS$246.49b

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 Average20.5x
LAB B Genomma Lab Internacional. de
15.4x19.8%Mex$24.7b
AZN AstraZeneca
30.3x18.4%UK£156.0b
ROG Roche Holding
18.8x11.1%CHF 201.6b
NOVN Novartis
17.6x7.0%CHF 183.1b
MRK * Merck
20.8x15.6%Mex$246.5b

Price-To-Earnings vs Peers: MRK * is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (20.5x).

Price to Earnings Ratio vs Industry

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

27 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies76PE01632486480+
27 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MRK * is good value based on its Price-To-Earnings Ratio (20.8x) compared to the Global Pharmaceuticals industry average (22.8x).

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 Ratio20.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MRK *'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 MRK * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$2,045.00
Mex$2,636.96
+28.9%
10.0%Mex$3,118.15Mex$2,011.71n/a27
Nov ’25Mex$2,076.20
Mex$2,708.14
+30.4%
7.9%Mex$3,142.87Mex$2,230.43n/a27
Oct ’25Mex$2,220.01
Mex$2,765.28
+24.6%
5.8%Mex$3,083.03Mex$2,386.86n/a26
Sep ’25Mex$2,312.00
Mex$2,741.29
+18.6%
5.9%Mex$3,052.06Mex$2,362.88n/a26
Aug ’25Mex$2,139.00
Mex$2,649.45
+23.9%
5.5%Mex$2,909.68Mex$2,252.65n/a26
Jul ’25Mex$2,373.00
Mex$2,502.61
+5.5%
5.3%Mex$2,718.67Mex$2,104.78n/a25
Jun ’25Mex$2,082.81
Mex$2,383.54
+14.4%
6.1%Mex$2,604.00Mex$1,982.40n/a25
May ’25Mex$2,220.20
Mex$2,408.76
+8.5%
6.1%Mex$2,637.76Mex$2,008.10n/a26
Apr ’25Mex$2,176.25
Mex$2,256.12
+3.7%
5.7%Mex$2,451.49Mex$1,888.31n/a25
Mar ’25Mex$2,190.00
Mex$2,280.28
+4.1%
7.6%Mex$2,525.19Mex$1,757.40n/a26
Feb ’25Mex$2,140.19
Mex$2,182.52
+2.0%
7.6%Mex$2,392.11Mex$1,759.91n/a27
Jan ’25Mex$1,824.00
Mex$2,110.00
+15.7%
7.0%Mex$2,317.67Mex$1,768.29n/a28
Dec ’24Mex$1,777.77
Mex$2,140.21
+20.4%
6.8%Mex$2,337.34Mex$1,783.30n/a28
Nov ’24Mex$1,840.31
Mex$2,233.42
+21.4%
6.6%Mex$2,437.22Mex$1,859.51Mex$2,076.2027
Oct ’24Mex$1,833.75
Mex$2,103.47
+14.7%
6.8%Mex$2,312.02Mex$1,763.99Mex$2,220.0127
Sep ’24Mex$1,869.20
Mex$2,058.28
+10.1%
7.2%Mex$2,264.22Mex$1,626.88Mex$2,312.0028
Aug ’24Mex$1,788.00
Mex$2,078.46
+16.2%
7.0%Mex$2,276.28Mex$1,635.55Mex$2,139.0028
Jul ’24Mex$1,980.00
Mex$2,093.27
+5.7%
8.0%Mex$2,305.42Mex$1,656.49Mex$2,373.0026
Jun ’24Mex$1,933.01
Mex$2,165.90
+12.0%
8.3%Mex$2,396.99Mex$1,709.62Mex$2,082.8127
May ’24Mex$2,052.00
Mex$2,206.50
+7.5%
9.6%Mex$2,778.93Mex$1,739.07Mex$2,220.2028
Apr ’24Mex$1,904.74
Mex$2,188.52
+14.9%
10.9%Mex$2,825.09Mex$1,749.73Mex$2,176.2527
Mar ’24Mex$1,931.62
Mex$2,201.03
+13.9%
10.8%Mex$2,846.65Mex$1,763.09Mex$2,190.0026
Feb ’24Mex$1,992.18
Mex$2,214.04
+11.1%
9.3%Mex$2,560.81Mex$1,826.46Mex$2,140.1924
Jan ’24Mex$2,160.01
Mex$2,213.00
+2.5%
9.5%Mex$2,642.97Mex$1,885.06Mex$1,824.0024
Dec ’23Mex$2,089.00
Mex$2,121.30
+1.5%
6.9%Mex$2,419.18Mex$1,877.28Mex$1,777.7723
Nov ’23Mex$1,970.36
Mex$2,089.52
+6.0%
9.1%Mex$2,476.80Mex$1,684.22Mex$1,840.3122

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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