Merck & Co., Inc. (MRK) Financial Ratios
30 years of historical data (1996–2025) · Healthcare · Drug Manufacturers - General
EV/EBITDA
↓
10.79
↓-42% vs avg
5yr avg: 18.70
30Y Low7.0·High45.0
P/FCF
↑
22.69
+8% vs avg
5yr avg: 21.00
30Y Low8.7·High51.3
P/B Ratio
↓
5.41
-7% vs avg
5yr avg: 5.81
30Y Low1.3·High10.6
ROE
↓
36.9%
↓+20% vs avg
5yr avg: 30.8%
30Y Low1%·High41%
Debt/EBITDA
↓
1.72
↓-29% vs avg
5yr avg: 2.43
30Y Low0.3·High5.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MRK Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Merck & Co., Inc. trades at 15.6x earnings, 91% below its 5-year average of 168.5x, sitting at the 32nd percentile of its historical range. Compared to the Healthcare sector median P/E of 22.2x, the stock trades at a discount of 30%. On a free-cash-flow basis, the stock trades at 22.7x P/FCF, 8% above the 5-year average of 21.0x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $280.5B | $263.9B | $252.8B | $277.7B | $282.0B | $194.5B | $198.2B | $223.7B | $195.2B | $147.4B | $156.4B |
| Enterprise Value | $316.4B | $299.9B | $277.8B | $307.1B | $301.3B | $221.0B | $223.6B | $241.4B | $212.3B | $165.7B | $174.8B |
| P/E Ratio → | 15.60 | 14.46 | 14.76 | 778.71 | 19.43 | 14.91 | 28.06 | 22.70 | 31.41 | 57.69 | 27.51 |
| P/S Ratio | 4.32 | 4.06 | 3.94 | 4.62 | 4.76 | 3.99 | 4.77 | 5.72 | 4.62 | 3.67 | 3.93 |
| P/B Ratio | 5.41 | 5.01 | 5.45 | 7.38 | 6.12 | 5.08 | 7.80 | 8.60 | 7.26 | 4.26 | 3.88 |
| P/FCF | 22.69 | 21.35 | 13.97 | 30.37 | 19.18 | 20.13 | 34.03 | 22.45 | 23.50 | 32.31 | 17.85 |
| P/OCF | 17.03 | 16.02 | 11.77 | 21.35 | 14.77 | 13.79 | 19.33 | 16.65 | 17.87 | 22.87 | 15.08 |
P/E links to full P/E history page with 30-year chart
MRK EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Merck & Co., Inc.'s enterprise value stands at 10.8x EBITDA, 42% below its 5-year average of 18.7x. The Healthcare sector median is 14.1x, placing the stock at a 23% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.62 | 4.33 | 5.11 | 5.08 | 4.54 | 5.38 | 6.17 | 5.02 | 4.13 | 4.39 |
| EV / EBITDA | 10.79 | 10.23 | 11.24 | 44.99 | 13.58 | 13.47 | 24.75 | 21.49 | 15.79 | 14.45 | 15.93 |
| EV / EBIT | 13.47 | 12.77 | 13.10 | 101.19 | 17.31 | 15.05 | 33.40 | 19.54 | 22.42 | 22.78 | 32.65 |
| EV / FCF | — | 24.26 | 15.35 | 33.59 | 20.49 | 22.88 | 38.39 | 24.22 | 25.56 | 36.32 | 19.95 |
MRK Profitability
Margins and return-on-capital ratios measuring operating efficiency
Merck & Co., Inc. earns an operating margin of 36.2%. Operating margins have expanded from 4.9% to 36.2% over the past 3 years, signaling improving operational efficiency. Return on equity of 36.9% is exceptionally high. ROIC of 22.0% represents excellent returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.0% | 72.0% | 76.3% | 73.2% | 70.6% | 72.0% | 67.2% | 69.3% | 68.1% | 67.8% | 64.8% |
| Operating Margin | 36.2% | 36.2% | 31.5% | 4.9% | 30.8% | 27.1% | 13.4% | 20.3% | 21.1% | 16.9% | 13.8% |
| Net Profit Margin | 28.1% | 28.1% | 26.7% | 0.6% | 24.5% | 26.8% | 17.0% | 25.2% | 14.7% | 6.0% | 9.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 36.9% | 36.9% | 40.8% | 0.9% | 34.4% | 41.0% | 27.5% | 37.2% | 20.2% | 6.4% | 9.2% |
| ROA | 14.4% | 14.4% | 15.3% | 0.3% | 13.5% | 13.2% | 8.0% | 11.8% | 7.3% | 2.6% | 4.0% |
| ROIC | 22.0% | 22.0% | 21.9% | 3.3% | 21.1% | 17.1% | 8.8% | 13.6% | 13.8% | 9.1% | 6.8% |
| ROCE | 23.8% | 23.8% | 23.8% | 3.6% | 21.9% | 18.1% | 8.8% | 12.9% | 13.8% | 9.2% | 6.8% |
MRK Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Merck & Co., Inc. carries a Debt/EBITDA ratio of 1.7x, which is manageable (45% below the sector average of 3.1x). Net debt stands at $36.0B ($50.5B total debt minus $14.6B cash). Interest coverage of 17.3x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.96 | 0.96 | 0.83 | 0.96 | 0.69 | 0.91 | 1.32 | 1.05 | 0.93 | 0.71 | 0.62 |
| Debt / EBITDA | 1.72 | 1.72 | 1.55 | 5.31 | 1.44 | 2.11 | 3.70 | 2.43 | 1.87 | 2.13 | 2.26 |
| Net Debt / Equity | — | 0.68 | 0.54 | 0.78 | 0.42 | 0.69 | 1.00 | 0.68 | 0.64 | 0.53 | 0.45 |
| Net Debt / EBITDA | 1.23 | 1.23 | 1.01 | 4.31 | 0.87 | 1.62 | 2.81 | 1.57 | 1.28 | 1.60 | 1.67 |
| Debt / FCF | — | 2.91 | 1.38 | 3.22 | 1.31 | 2.75 | 4.36 | 1.77 | 2.06 | 4.01 | 2.09 |
| Interest Coverage | 17.31 | 17.31 | 16.69 | 2.65 | 18.09 | 18.22 | 8.06 | 13.84 | 12.27 | 9.65 | 7.72 |
MRK Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.54x means Merck & Co., Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The current ratio has improved from 1.25x to 1.54x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.54 | 1.54 | 1.36 | 1.25 | 1.47 | 1.27 | 1.02 | 1.24 | 1.17 | 1.33 | 1.78 |
| Quick Ratio | 1.30 | 1.30 | 1.15 | 1.00 | 1.23 | 1.02 | 0.81 | 0.97 | 0.92 | 1.06 | 1.50 |
| Cash Ratio | 0.51 | 0.51 | 0.48 | 0.28 | 0.54 | 0.34 | 0.29 | 0.47 | 0.40 | 0.46 | 0.83 |
| Asset Turnover | — | 0.47 | 0.55 | 0.56 | 0.54 | 0.46 | 0.45 | 0.46 | 0.51 | 0.46 | 0.42 |
| Inventory Turnover | 2.73 | 2.73 | 2.49 | 2.54 | 2.95 | 2.29 | 2.45 | 2.01 | 2.48 | 2.53 | 2.88 |
| Days Sales Outstanding | — | 71.28 | 58.46 | 62.84 | 58.18 | 69.17 | 59.81 | 63.24 | 61.02 | 62.53 | 64.35 |
MRK Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Merck & Co., Inc. returns 4.7% to shareholders annually — split between a 2.9% dividend yield and 1.8% buyback yield. A payout ratio of 44.8% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 6.4% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 3.1% | 3.1% | 2.7% | 2.5% | 3.4% | 3.1% | 2.5% | 2.6% | 3.5% | 3.3% |
| Payout Ratio | 44.8% | 44.8% | 45.8% | 2039.7% | 48.3% | 50.7% | 87.9% | 57.9% | 83.2% | 215.8% | 130.7% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.4% | 6.9% | 6.8% | 0.1% | 5.1% | 6.7% | 3.6% | 4.4% | 3.2% | 1.7% | 3.6% |
| FCF Yield | 4.4% | 4.7% | 7.2% | 3.3% | 5.2% | 5.0% | 2.9% | 4.5% | 4.3% | 3.1% | 5.6% |
| Buyback Yield | 1.8% | 1.9% | 0.5% | 0.5% | 0.0% | 0.4% | 0.6% | 2.1% | 4.7% | 2.7% | 2.2% |
| Total Shareholder Yield | 4.7% | 5.0% | 3.6% | 3.2% | 2.5% | 3.8% | 3.8% | 4.7% | 7.3% | 6.2% | 5.5% |
| Shares Outstanding | — | $2.5B | $2.5B | $2.5B | $2.5B | $2.5B | $2.5B | $2.6B | $2.7B | $2.7B | $2.8B |
Peer Comparison
Compare MRK with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MRKYou | $280B | 15.6 | 10.8 | 22.7 | 72.0% | 36.2% | 36.9% | 22.0% | 1.7 |
 PFE | $151B | 19.5 | 10.7 | 16.6 | 70.3% | 24.7% | 8.9% | 7.5% | 3.3 |
 LLY | $933B | 43.0 | 31.0 | 104.0 | 83.8% | 45.6% | 101.2% | 41.8% | 1.4 |
 ABBV | $363B | 86.5 | 15.1 | 20.4 | 70.2% | 32.8% | 6214.7% | 23.9% | 2.4 |
 BMY | $115B | 16.4 | 9.2 | 9.0 | 67.6% | 26.3% | 40.4% | 16.9% | 2.8 |
 AMGN | $179B | 23.3 | 14.1 | 22.1 | 70.8% | 29.1% | 106.1% | 14.8% | 3.4 |
 JNJ | $541B | 38.8 | 18.8 | 27.3 | 69.1% | 24.9% | 20.1% | 20.7% | 1.2 |
 AZN | $287B | 28.3 | 16.0 | 24.4 | 81.9% | 23.4% | 22.9% | 14.9% | 1.5 |
 GSK | $102B | 6.7 | 8.4 | 12.8 | 72.4% | 25.5% | 39.4% | 22.1% | 1.7 |
 NVO | $154B | 12.7 | 7.5 | 17.3 | 81.0% | 41.4% | 58.4% | 34.9% | 0.9 |
 GILD | $170B | 358.7 | 42.1 | 16.5 | 78.3% | 5.8% | 2.3% | 3.2% | 6.0 |
| Healthcare Median | — | 22.2 | 14.1 | 18.6 | 64.1% | -5.3% | -34.0% | -11.2% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonMRK — Frequently Asked Questions
Quick answers to the most common questions about buying MRK stock.
What is Merck & Co., Inc.'s P/E ratio?
Merck & Co., Inc.'s current P/E ratio is 15.6x. The historical average is 25.8x. This places it at the 32th percentile of its historical range.
What is Merck & Co., Inc.'s EV/EBITDA?
Merck & Co., Inc.'s current EV/EBITDA is 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 15.0x.
What is Merck & Co., Inc.'s ROE?
Merck & Co., Inc.'s return on equity (ROE) is 36.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.9%.
Is MRK stock overvalued?
Based on historical data, Merck & Co., Inc. is trading at a P/E of 15.6x. This is at the 32th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Merck & Co., Inc.'s dividend yield?
Merck & Co., Inc.'s current dividend yield is 2.87% with a payout ratio of 44.8%.
What are Merck & Co., Inc.'s profit margins?
Merck & Co., Inc. has 72.0% gross margin and 36.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Merck & Co., Inc. have?
Merck & Co., Inc.'s Debt/EBITDA ratio is 1.7x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.