Merck Stock Valuation

MRK
 Stock
  

USD 91.40  0.36  0.40%   

What is the current Merck valuation? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Merck, is its stock price multiplied by the total number of shares outstanding, calculating Merck's enterprise value requires a different approach. It uses Merck's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
The current Enterprise Value is estimated to increase to about 216 B, while Free Cash Flow is projected to decrease to under 8.7 B.
Merck Company secures a last-minute Real Value of $90.64 per share. The latest price of the firm is $91.4. At this time, the firm appears to be fairly valued. Our model forecasts the value of Merck Company from analyzing the firm fundamentals such as Profit Margin of 29.00 %, return on equity of 40.93 %, and Current Valuation of 248.86 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend purchasing undervalued stocks and trading away overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
Merck Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Merck's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today 91.40
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.
90.64
Real Value
91.92
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 (6)
LowProjected EPSHigh
5.655.825.98
Details
Hype
Prediction
LowEstimated ValueHigh
89.8891.1692.44
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
1.691.731.77
Details
17 Analysts
Consensus
LowTarget PriceHigh
70.0090.88110.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Merck's intrinsic value based on its ongoing forecasts of Merck's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Merck's closest peers. When choosing an evaluation method for Merck Company, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Merck Investments

379.74 Million

Merck Valuation Drivers Correlation

Many accounts on the financial statements of Merck Company are highly interrelated and sometimes correlated. Consequently, when conducting Merck's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Merck
Click cells to compare fundamentals

Merck Valuation Trend

Knowing Merck's actual value is paramount for traders to make sound investment determinations. Merck's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Merck's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Merck's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Merck Market Cap

Merck Company is considered to be number one stock in market capitalization category among related companies. Market capitalization of Drug Manufacturers—General industry is now estimated at about 1.37 Trillion. Merck retains roughly 228.85 Billion in market capitalization claiming about 17% of equities under Drug Manufacturers—General industry.
Capitalization  Total debt  Valuation  Workforce  Revenue

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 earning category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about  0.13  of Price to Sales per Price to Earning. The ratio of Price to Earning to Price to Sales for Merck Company is roughly  7.99 . The current Price to Sales Ratio is estimated to increase to 4.37. 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 2022
Gross Profit35.1 B34.8 B
Profit Margin 0.27  0.24 
Merck Co., Inc. operates as a healthcare company worldwide. Merck Co., Inc. was founded in 1891 and is headquartered in Kenilworth, New Jersey. Merck operates under Drug ManufacturersGeneral classification in the United States and is traded on New York Stock Exchange. It employs 67000 people.

Merck Quarterly Enterprise Value

253.79 Billion

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

The current Payment of Dividends and Other Cash Distributions is estimated to decrease to about (7.1 B). The current Dividend Yield is estimated to decrease to 0.0317. Merck Accumulated Retained Earnings Deficit are increasing as compared to previous years. The last year's value of Accumulated Retained Earnings Deficit was reported at 53.7 Billion. The current Price to Earnings Ratio is estimated to increase to 15.24, while Earning Before Interest and Taxes EBIT is projected to decrease to under 12.8 B.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-6.6 B-7.1 B
Dividend Yield 0.034  0.0317 
Dividends per Basic Common Share 2.64  2.53 
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 Valuation Growth Rates

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.
Earnings Quarterly Growth155.30%
Revenue Growth28.00%
Payout Ratio41.53%
Enterprise Value To Ebitda10.37
Earnings Growth154.10%
Enterprise Value To Revenue4.35

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.
Additionally, see Stocks Correlation. 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.

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.
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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.
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 Merck value 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.