Merck & Co., Inc.

NYSE:MRK Stock Report

Market Cap: US$244.2b

Merck Valuation

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

Below Fair Value: MRK ($97.44) is trading below our estimate of fair value ($279.91)

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 Ratio20.3x
EarningsUS$12.15b
Market CapUS$244.21b

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 Average42.9x
JNJ Johnson & Johnson
25x10.6%US$368.4b
PFE Pfizer
33.1x16.8%US$142.2b
LLY Eli Lilly
81.1x29.5%US$657.1b
ZTS Zoetis
32.6x9.9%US$79.2b
MRK Merck
20.3x15.6%US$244.2b

Price-To-Earnings vs Peers: MRK is good value based on its Price-To-Earnings Ratio (20.3x) compared to the peer average (42.9x).

Price to Earnings Ratio vs Industry

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

12 CompaniesPrice / EarningsEstimated GrowthMarket Cap
OGN Organon
2.9x-7.1%US$3.76b
NDOI Endo
0.6xn/aUS$1.91b
PROC Procaps Group
1.2xn/aUS$59.68m
KPRX Kiora Pharmaceuticals
1.8x-40.4%US$9.59m
MRK 20.3xIndustry Avg. 20.1xNo. of Companies12PE01224364860+
12 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MRK is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the US Pharmaceuticals industry average (20.1x).

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 Ratio20.3x
Fair PE Ratio38.3x

Price-To-Earnings vs Fair Ratio: MRK is good value based on its Price-To-Earnings Ratio (20.3x) compared to the estimated Fair Price-To-Earnings Ratio (38.3x).

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
CurrentUS$97.44
US$131.08
+34.5%
10.0%US$155.00US$100.00n/a27
Nov ’25US$101.88
US$133.56
+31.1%
7.9%US$155.00US$110.00n/a27
Oct ’25US$114.74
US$139.03
+21.2%
5.8%US$155.00US$120.00n/a26
Sep ’25US$118.45
US$139.22
+17.5%
5.9%US$155.00US$120.00n/a26
Aug ’25US$113.82
US$141.14
+24.0%
5.5%US$155.00US$120.00n/a26
Jul ’25US$127.90
US$142.68
+11.6%
5.3%US$155.00US$120.00n/a25
Jun ’25US$125.54
US$141.88
+13.0%
6.1%US$155.00US$118.00n/a25
May ’25US$128.80
US$141.54
+9.9%
6.1%US$155.00US$118.00n/a26
Apr ’25US$130.99
US$136.21
+4.0%
5.7%US$148.00US$114.00n/a25
Mar ’25US$126.96
US$133.65
+5.3%
7.6%US$148.00US$103.00n/a26
Feb ’25US$126.38
US$127.73
+1.1%
7.6%US$140.00US$103.00n/a27
Jan ’25US$109.02
US$122.90
+12.7%
7.0%US$135.00US$103.00n/a28
Dec ’24US$103.46
US$123.61
+19.5%
6.8%US$135.00US$103.00n/a28
Nov ’24US$102.85
US$123.71
+20.3%
6.6%US$135.00US$103.00US$101.8827
Oct ’24US$102.95
US$122.82
+19.3%
6.8%US$135.00US$103.00US$114.7427
Sep ’24US$109.84
US$122.72
+11.7%
7.2%US$135.00US$97.00US$118.4528
Aug ’24US$105.28
US$123.27
+17.1%
7.0%US$135.00US$97.00US$113.8228
Jul ’24US$115.39
US$122.58
+6.2%
8.0%US$135.00US$97.00US$127.9026
Jun ’24US$110.93
US$122.89
+10.8%
8.3%US$136.00US$97.00US$125.5427
May ’24US$116.34
US$123.07
+5.8%
9.6%US$155.00US$97.00US$128.8028
Apr ’24US$106.39
US$120.07
+12.9%
10.9%US$155.00US$96.00US$130.9927
Mar ’24US$106.65
US$119.85
+12.4%
10.8%US$155.00US$96.00US$126.9626
Feb ’24US$106.98
US$117.58
+9.9%
9.3%US$136.00US$97.00US$126.3824
Jan ’24US$110.95
US$113.88
+2.6%
9.5%US$136.00US$97.00US$109.0224
Dec ’23US$109.80
US$109.61
-0.2%
6.9%US$125.00US$97.00US$103.4623
Nov ’23US$99.76
US$105.45
+5.7%
9.1%US$125.00US$85.00US$102.8522

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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