Merck Valuation

MRK Stock  USD 131.95  0.20  0.15%   
At this time, the firm appears to be fairly valued. Merck Company secures a last-minute Real Value of $129.13 per share. The latest price of the firm is $131.95. Our model forecasts the value of Merck Company from analyzing the firm fundamentals such as Current Valuation of 361.64 B, profit margin of 0.01 %, and Return On Equity of 0.009 as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend picking up undervalued stocks and discarding overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Price Book
8.8788
Enterprise Value
361.6 B
Enterprise Value Ebitda
52.3582
Price Sales
5.5506
Forward PE
15.361
Fairly Valued
Today
131.95
Please note that Merck's price fluctuation is very steady at this time. Calculation of the real value of Merck Company is based on 3 months time horizon. Increasing Merck's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Merck Company is useful when determining the fair value of the Merck stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Merck. Since Merck is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Merck Stock. However, Merck's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  131.95 Real  129.13 Target  117.2 Hype  131.93 Naive  136.86
The real value of Merck Stock, also known as its intrinsic value, is the underlying worth of Merck Company Company, which is reflected in its stock price. It is based on Merck's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Merck's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Merck's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
127.96
Downside
129.13
Real Value
145.15
Upside
Estimating the potential upside or downside of Merck Company helps investors to forecast how Merck stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Merck more accurately as focusing exclusively on Merck's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
1.782.062.25
Details
Hype
Prediction
LowEstimatedHigh
130.76131.93133.10
Details
Potential
Annual Dividend
LowForecastedHigh
2.122.162.20
Details
28 Analysts
Consensus
LowTarget PriceHigh
106.65117.20130.09
Details

Merck Investments

(15.09 Billion)

Merck Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Merck's current stock value. Our valuation model uses many indicators to compare Merck value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Merck competition to find correlations between indicators driving Merck's intrinsic value. More Info.
Merck Company is considered to be number one stock in price to sales category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about  1.60  of Price To Book per Price To Sales. The value of Price To Book Ratio is estimated to slide to 6.91. Comparative valuation analysis is a catch-all model that can be used if you cannot value Merck by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Merck's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Merck's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Merck's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Merck and how it compares across the competition.

About Merck Valuation

The stock valuation mechanism determines the current worth of Merck Company on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Merck Company. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Merck Company based exclusively on its fundamental and basic technical indicators. By analyzing Merck's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Merck's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Merck. We calculate exposure to Merck's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Merck's related companies.
Last ReportedProjected for 2024
Gross Profit43.9 B46.1 B
Pretax Profit Margin 0.03  0.03 
Operating Profit Margin 0.05  0.05 
Net Profit Margin 0.01  0.01 
Gross Profit Margin 0.73  0.74 

Merck Quarterly Retained Earnings

53.9 Billion

8 Steps to conduct Merck's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Merck's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Merck's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Merck's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Merck's revenue streams: Identify Merck's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Merck's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Merck's growth potential: Evaluate Merck's management, business model, and growth potential.
  • Determine Merck's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Merck's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Merck's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Merck's value is low or high relative to the company's performance and growth projections. Determining the market value of Merck can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Merck represents a small ownership stake in the entity. As a stockholder of Merck, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Merck Dividends Analysis For Valuation

At this time, Merck's Dividend Payout Ratio is quite stable compared to the past year. Dividend Paid And Capex Coverage Ratio is expected to rise to 3.81 this year, although the value of Dividends Paid is projected to rise to (7.1 B). . Price Earnings Ratio is expected to rise to 795.65 this year, although the value of Retained Earnings will most likely fall to about 32.6 B.
Last ReportedProjected for 2024
Dividends Paid-7.4 B-7.1 B
Dividend Yield 0.03  0.02 
Dividend Payout Ratio 20.40  21.42 
Dividend Paid And Capex Coverage Ratio 3.63  3.81 
There are various types of dividends Merck can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Merck shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Merck Company directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Merck pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Merck by the value of the dividends paid out.

Merck Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Merck does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding2.5 B
Quarterly Earnings Growth Y O Y0.453
Forward Price Earnings15.361

Merck Current Valuation Indicators

Valuation refers to the process of determining the present value of Merck Company and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Merck we look at many different elements of the entity such as Merck's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Merck's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Merck's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Merck, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Merck's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Merck's worth.
When determining whether Merck Company is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Merck Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Merck Company Stock. Highlighted below are key reports to facilitate an investment decision about Merck Company Stock:
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in metropolitan statistical area.
You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

Complementary Tools for Merck Stock analysis

When running Merck's price analysis, check to measure Merck's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Merck is operating at the current time. Most of Merck's value examination focuses on studying past and present price action to predict the probability of Merck's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Merck's price. Additionally, you may evaluate how the addition of Merck to your portfolios can decrease your overall portfolio volatility.
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Is Merck's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Merck. If investors know Merck will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Merck listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.453
Dividend Share
2.92
Earnings Share
0.14
Revenue Per Share
23.695
Quarterly Revenue Growth
0.058
The market value of Merck Company is measured differently than its book value, which is the value of Merck that is recorded on the company's balance sheet. Investors also form their own opinion of Merck's value that differs from its market value or its book value, called intrinsic value, which is Merck's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Merck's market value can be influenced by many factors that don't directly affect Merck's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Merck's value and its price as these two are different measures arrived at by different means. Investors typically determine if Merck is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Merck's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.