Merck Company Stock Market Value
| MRK Stock | USD 105.06 1.60 1.55% |
| Symbol | Merck |
Merck Company Valuation
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 2.88 | Earnings Share 1.8 | Revenue Per Share 23.378 | Quarterly Revenue Growth 0.067 |
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.
Merck 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Merck's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Merck.
| 11/05/2023 |
| 12/05/2023 |
If you would invest 0.00 in Merck on November 5, 2023 and sell it all today you would earn a total of 0.00 from holding Merck Company or generate 0.0% return on investment in Merck over 30 days. Merck is related to or competes with Vaccinex, Dyadic International, Eterna Therapeutics, Esperion Therapeutics, Flora Growth, and Ginkgo Bioworks. Merck Co., Inc. operates as a healthcare company worldwide More
Merck Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Merck's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Merck Company upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.07) | |||
| Maximum Drawdown | 4.82 | |||
| Value At Risk | (1.93) | |||
| Potential Upside | 1.4 |
Merck Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Merck's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Merck's standard deviation. In reality, there are many statistical measures that can use Merck historical prices to predict the future Merck's volatility.| Risk Adjusted Performance | (0.030401) | |||
| Jensen Alpha | (0.06) | |||
| Total Risk Alpha | (0.07) | |||
| Treynor Ratio | (0.15) |
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Merck's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Merck in the context of predictive analytics.
Merck Company Backtested Returns
Merck Company has Sharpe Ratio of -0.0067, which conveys that the firm had -0.0067% of return per unit of risk over the last 3 months. Our standpoint towards estimating the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Merck exposes fifteen different technical indicators, which can help you to evaluate volatility embedded in its stock price that cannot be diversified away. Please verify Merck Company Standard Deviation of 0.97, mean deviation of 0.7548, and Risk Adjusted Performance of (0.030401) to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 0.3433, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Merck returns are expected to increase less than the market. However, during the bear market, the loss on holding Merck will be expected to be smaller as well. Merck Company has an expected return of -0.0063%. Please make sure to verify Merck Company market risk adjusted performance, information ratio, as well as the relationship between the Information Ratio and skewness to decide if Merck Company performance from the past will be repeated at some point in the near future.
Auto-correlation | -0.13 |
Insignificant reverse predictability
Merck Company has insignificant reverse predictability. Overlapping area represents the amount of predictability between Merck time series from 5th of November 2023 to 20th of November 2023 and 20th of November 2023 to 5th of December 2023. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Merck Company price movement. The serial correlation of -0.13 indicates that less than 13.0% of current Merck price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.13 | |
| Spearman Rank Test | -0.21 | |
| Residual Average | 0.0 | |
| Price Variance | 1.63 |
Merck Company lagged returns against current returns
Autocorrelation, which is Merck stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Merck's stock expected returns. We can calculate the autocorrelation of Merck returns to help us make a trade decision. For example, suppose you find that Merck stock has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the stock movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Merck regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Merck stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Merck stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Merck stock over time.
Current vs Lagged Prices |
| Timeline |
Merck Lagged Returns
When evaluating Merck's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Merck stock have on its future price. Merck autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Merck autocorrelation shows the relationship between Merck stock current value and its past values and can show if there is a momentum factor associated with investing in Merck Company.
Regressed Prices |
| Timeline |
Merck Investors Sentiment
The influence of Merck's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Merck. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Merck's public news can be used to forecast risks associated with an investment in Merck. The trend in average sentiment can be used to explain how an investor holding Merck can time the market purely based on public headlines and social activities around Merck Company. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Merck's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Merck's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Merck's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Merck.
Merck Implied Volatility | 21.51 |
Merck's implied volatility exposes the market's sentiment of Merck Company stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Merck's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Merck stock will not fluctuate a lot when Merck's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Merck in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Merck's short interest history, or implied volatility extrapolated from Merck options trading.
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Check out Merck Correlation, Merck Volatility and Merck Alpha and Beta module to complement your research on Merck. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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.
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Merck technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.