30 years of historical data (1996–2025) · Healthcare · Drug Manufacturers - General
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Merck & Co., Inc. trades at 17.0x earnings, 90% 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 23.7x, the stock trades at a discount of 28%.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $307.2B | $263.9B | $252.8B | $277.7B | $282.0B | $194.5B | $198.2B | $223.7B | $195.2B | $147.4B | $156.4B |
| Enterprise Value | $307.2B | $263.9B | $277.8B | $307.1B | $301.3B | $221.0B | $223.6B | $241.4B | $212.3B | $165.7B | $174.8B |
| P/E Ratio → | 17.00 | 14.46 | 14.76 | 778.71 | 19.43 | 14.91 | 28.06 | 22.70 | 31.41 | 57.69 | 27.51 |
| P/S Ratio | 4.73 | 4.06 | 3.94 | 4.62 | 4.76 | 3.99 | 4.77 | 5.72 | 4.62 | 3.67 | 3.93 |
| P/B Ratio | 5.98 | 5.08 | 5.45 | 7.38 | 6.12 | 5.08 | 7.80 | 8.60 | 7.26 | 4.26 | 3.88 |
| P/FCF | — | — | 13.97 | 30.37 | 19.18 | 20.13 | 35.59 | 22.45 | 23.50 | 32.34 | 17.85 |
| P/OCF | — | — | 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
Merck & Co., Inc.'s enterprise value stands at 9.9x EBITDA, 46% below its 5-year average of 18.4x. The Healthcare sector median is 13.8x, placing the stock at a 29% 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 | — | 4.06 | 4.33 | 5.11 | 5.08 | 4.54 | 5.38 | 6.17 | 5.02 | 4.13 | 4.39 |
| EV / EBITDA | 9.89 | 8.49 | 11.24 | 44.99 | 13.58 | 13.47 | 24.75 | 21.49 | 15.79 | 14.45 | 15.93 |
| EV / EBIT | 11.47 | 12.53 | 13.10 | 101.19 | 17.31 | 15.05 | 33.40 | 19.54 | 22.42 | 22.78 | 32.65 |
| EV / FCF | — | — | 15.35 | 33.59 | 20.49 | 22.88 | 40.14 | 24.22 | 25.56 | 36.36 | 19.95 |
Margins and return-on-capital ratios measuring operating efficiency
Merck & Co., Inc. earns an operating margin of 41.2%. Operating margins have expanded from 4.9% to 41.2% over the past 3 years, signaling improving operational efficiency. Return on equity of 37.1% is exceptionally high. ROIC of 32.6% represents excellent returns on invested capital.
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 | 81.5% | 81.5% | 76.3% | 73.2% | 70.6% | 72.0% | 67.2% | 69.3% | 68.1% | 67.8% | 64.8% |
| Operating Margin | 41.2% | 41.2% | 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% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 37.1% | 37.1% | 40.8% | 0.9% | 34.4% | 41.0% | 27.5% | 37.2% | 20.2% | 6.4% | 9.2% |
| ROA | — | — | 15.3% | 0.3% | 13.5% | 13.2% | 8.0% | 11.8% | 7.3% | 2.6% | 4.0% |
| ROIC | 32.6% | 32.6% | 21.9% | 3.3% | 21.1% | 17.1% | 8.8% | 13.6% | 13.8% | 9.1% | 6.8% |
| ROCE | — | — | 23.8% | 3.6% | 21.9% | 18.1% | 8.8% | 12.9% | 13.8% | 9.2% | 6.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | — | — | 0.83 | 0.96 | 0.69 | 0.91 | 1.32 | 1.05 | 0.93 | 0.71 | 0.62 |
| Debt / EBITDA | — | — | 1.55 | 5.31 | 1.44 | 2.11 | 3.70 | 2.43 | 1.87 | 2.13 | 2.26 |
| Net Debt / Equity | — | 0.00 | 0.54 | 0.78 | 0.42 | 0.69 | 1.00 | 0.68 | 0.64 | 0.53 | 0.45 |
| Net Debt / EBITDA | — | 0.00 | 1.01 | 4.31 | 0.87 | 1.62 | 2.81 | 1.57 | 1.28 | 1.60 | 1.67 |
| Debt / FCF | — | — | 1.38 | 3.22 | 1.31 | 2.75 | 4.56 | 1.77 | 2.06 | 4.02 | 2.09 |
| Interest Coverage | — | — | 15.91 | 2.58 | 19.00 | 16.38 | 6.68 | 8.88 | 11.57 | 9.01 | 7.94 |
Short-term solvency ratios and asset-utilisation metrics
The current ratio has improved from 1.25x to 1.36x 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 | — | — | 1.36 | 1.25 | 1.47 | 1.27 | 1.02 | 1.24 | 1.17 | 1.33 | 1.78 |
| Quick Ratio | — | — | 1.15 | 1.00 | 1.23 | 1.02 | 0.81 | 0.97 | 0.92 | 1.06 | 1.50 |
| Cash Ratio | 0.48 | — | 0.48 | 0.28 | 0.54 | 0.34 | 0.29 | 0.47 | 0.40 | 0.46 | 0.83 |
| Asset Turnover | — | — | 0.55 | 0.56 | 0.54 | 0.46 | 0.45 | 0.46 | 0.51 | 0.46 | 0.42 |
| Inventory Turnover | 2.49 | — | 2.49 | 2.54 | 2.95 | 2.29 | 2.45 | 2.01 | 2.48 | 2.53 | 2.88 |
| Days Sales Outstanding | — | — | 58.46 | 62.84 | 58.18 | 69.17 | 59.81 | 63.24 | 61.02 | 62.53 | 64.35 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Merck & Co., Inc. does not currently pay a dividend and has no material buyback yield, reinvesting earnings back into the business. The earnings yield of 5.9% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
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 | — | — | 3.1% | 2.7% | 2.5% | 3.4% | 3.1% | 2.5% | 2.6% | 3.5% | 3.3% |
| Payout Ratio | — | — | 45.8% | 2039.7% | 48.3% | 50.7% | 87.9% | 57.9% | 83.2% | 215.8% | 130.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 6.9% | 6.8% | 0.1% | 5.1% | 6.7% | 3.6% | 4.4% | 3.2% | 1.7% | 3.6% |
| FCF Yield | — | — | 7.2% | 3.3% | 5.2% | 5.0% | 2.8% | 4.5% | 4.3% | 3.1% | 5.6% |
| Buyback Yield | 0.0% | 0.0% | 0.5% | 0.5% | 0.0% | 0.4% | 0.6% | 2.1% | 4.7% | 2.7% | 2.2% |
| Total Shareholder Yield | 0.0% | 0.0% | 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 |
Compare MRK with 4 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| MRKYou | $307B | 17.0 | 9.9 | — | 81.5% | 41.2% | 37.1% | 32.6% | — |
| PFE | $157B | 20.3 | 7.7 | — | 70.3% | 24.7% | 8.6% | 9.4% | — |
| GSK | $119B | 16.2 | 9.6 | 15.1 | 72.5% | 21.9% | 38.5% | 18.6% | 1.7 |
| SNY | $118B | 20.3 | 11.9 | 11.2 | 72.3% | 13.6% | 10.4% | 5.5% | 2.3 |
| GRFS | $2B | 33.5 | 6.8 | 3.8 | 38.7% | 16.5% | 1.9% | 5.0% | 6.2 |
| Healthcare Median | — | 23.7 | 13.8 | 18.8 | 65.8% | -6.3% | -37.3% | -15.0% | 3.1 |
Peers based on L4 peer group classification. Compare multiple stocks →
Includes 30+ ratios · 30 years · Updated daily
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Start ComparisonMerck & Co., Inc.'s current P/E ratio is 17.0x. The historical average is 25.8x. This places it at the 32th percentile of its historical range.
Merck & Co., Inc.'s current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.9x.
Merck & Co., Inc.'s return on equity (ROE) is 37.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.9%.
Based on historical data, Merck & Co., Inc. is trading at a P/E of 17.0x. This is at the 32th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Merck & Co., Inc. has 81.5% gross margin and 41.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.