Merck Stock Alpha and Beta Analysis

MRK
 Stock
  

USD 90.60  0.42  0.46%   

This module allows you to check different measures of market premium (i.e., alpha and beta) for all equities such as Merck Company. It also helps investors analyze the systematic and unsystematic risks associated with investing in Merck over a specified time horizon. Remember, high Merck's alpha is almost always a sign of good performance; however, a high beta will depend on investors' risk tolerance level and may signal increased volatility and potential future overvaluation.
Additionally, see Merck Backtesting, Merck Valuation, Merck Correlation, Merck Hype Analysis, Merck Volatility, Merck History and analyze Merck Performance.
  
Please note that although Merck alpha is a measure of relative return and represented here as a single number, it indicates the percentage above or below your selected benchmark (i.e., DOW index.) So in this particular case, Merck did 0.037802  better than the index. Remember, a high alpha is always good. Beta, on the other hand, measures the volatility (or risk) of an investment. It is an indication of Merck Company stock's relative risk over its benchmark. Merck Company has a beta of 0.39  . Let's try to break down what Merck's beta means in this case. 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 Tangible Assets Book Value per Share are increasing as compared to previous years. The last year's value of Tangible Assets Book Value per Share was reported at 24.35. The current Enterprise Value is estimated to increase to about 216 B, while Book Value per Share is projected to decrease to 14.01.
Alpha is a measure of relative performance on a risk-adjusted basis, while beta measures volatility against the benchmark. The goal is to know if an investor is being compensated for the volatility risk taken. The return on investment might be better than its reference but still not compensate for the assumption of the risk.

Merck Quarterly Book Value per Share

17.1

Merck Market Premiums

Investors always prefer to have the highest possible return on investment, coupled with the lowest possible volatility. Merck market risk premium is the additional return an investor will receive from holding Merck long position in a well-diversified portfolio. The market premium is part of the Capital Asset Pricing Model (CAPM), which most analysts and investors use to calculate the acceptable rate of return on investment in Merck. At the center of the CAPM is the concept of risk and reward, which is usually communicated by investors using alpha and beta measures. Alpha and beta are two of the key measurements used to evaluate Merck's performance over market.
α0.037802   β0.39
90 days against DJI

Merck expected buy-and-hold returns

Although buy-and-hold investment strategy may not appeal to all investors, it may be used as a good measure of Merck's Buy-and-hold return. Our buy-and-hold chart shows how Merck performed over your current time horizon against a typical interest-earning bank account and a selected benchmark.

Merck Market Price Analysis

Market price analysis indicators help investors to evaluate how Merck stock reacts to ongoing and evolving market conditions. The investors can use it to make informed decisions about market timing, and determine when trading Merck shares will generate the highest return on investment. By understating and applying Merck stock market price indicators, traders can identify Merck position entry and exit signals to maximize returns.

Merck Return and Market Media

The median price of Merck for the period between Tue, May 17, 2022 and Mon, Aug 15, 2022 is 90.53 with a coefficient of variation of 2.95. The daily time series for the period is distributed with a sample standard deviation of 2.66, arithmetic mean of 90.33, and mean deviation of 2.18. The Stock received a lot of media exposure during the period.
 Price Growth (%)  
       Timeline  
1
Filing05/26/2022
2
Acquisition by Baker Douglas M Jr of 2364 shares of Merck su...05/27/2022
3
3 Stocks That Drove the Dows Nearly 200-Point Gain - Nasdaq06/23/2022
4
All Major Indexes Above 21-Day Moving Averages Big Pharma St...06/27/2022
5
EPS Estimate06/30/2022
6
The Zacks Analyst Blog Highlights Sanofi, Merck, Novartis, P...07/01/2022
7
Stocks Edge Higher, Samsung, Merck, GameStop And Boris Johns...07/07/2022
8
CVS Health Pharmacy Claims Volume Grows, Margin Woes Stay - ...07/13/2022
9
Value Partners Investments Inc - GuruFocus.com07/19/2022
10
Will Merck Stock Rise After Its Q2 Results - Forbes07/25/2022
11
EPS Reported07/28/2022
12
Acquisition by David Williams of 17119 shares of Merck subje...08/04/2022
13
U.S. stocks higher at close of trade Dow Jones Industrial Av...08/10/2022
14
EPS Estimate08/11/2022

About Merck Beta and Alpha

For many years both, Alpha and Beta indicators are used by professional money managers as critical performance measurement tools across virtually all equity instruments such as Ford or other stocks, funds, and ETFs. Alpha measures the amount that position in Merck Company has returned in comparison to a selected market index or another relevant benchmark. In other words, Alpha is the excess return on an investment relative to the performance of your selected benchmark. Beta, on the other hand, measures the relative risk of your investment.
 2019 2020 2021 2022 (projected)
Long Term Debt to Equity0.881.00.80.67
Interest Coverage18.7410.2416.2814.72

Merck Upcoming Company Events

As portrayed in its financial statements, the presentation of Merck's financial position is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Merck's leadership is honest, while the outside auditors are strict and uncompromising. Whatever the case, investors should always follow all of Merck's public filing events to personally review all filings and be reasonable and skeptical to interpret all of the financial statements of Merck. Please utilize our Beneish M Score to check the likelihood of Merck's management manipulating its earnings.
Upcoming Quarterly Report3rd of February 2022
Next Financial Report5th of May 2022
Next Fiscal Quarter End31st of December 2021
Next Fiscal Year End3rd of February 2022
Last Quarter Report30th of September 2021
Last Financial Announcement31st of December 2020

Build Portfolio with Merck

Your optimized portfolios are the building block of your wealth. We provide an intuitive interface to determine which securities in a portfolio should be removed or rebalanced to achieve better diversification, find the right mix of securities that minimizes portfolio risk for a given return, or maximize portfolio expected return for a given risk level.

Build Diversified Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Additionally, see Merck Backtesting, Merck Valuation, Merck Correlation, Merck Hype Analysis, Merck Volatility, Merck History and analyze Merck Performance. Note that the Merck Company information on this page should be used as a complementary analysis to other Merck's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

Complementary Tools for Merck Stock analysis

When running Merck Company 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 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 Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
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
Go
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.
A focus of Merck technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Merck trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...