Merck (Germany) Performance
| MRK Stock | EUR 140.90 0.95 0.67% |
The company secures a Beta (Market Risk) of 0.42, which conveys possible diversification benefits within a given portfolio. As returns on the market increase, Merck's returns are expected to increase less than the market. However, during the bear market, the loss of holding Merck is expected to be smaller as well. At this point, Merck Company has a negative expected return of -0.32%. Please make sure to verify Merck's total risk alpha, potential upside, kurtosis, as well as the relationship between the treynor ratio and skewness , to decide if Merck Company performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
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Over the last 90 days Merck Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward-looking signals remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders. ...more
| Begin Period Cash Flow | 1.4 B | |
| Free Cash Flow | 3.2 B |
Merck |
Merck Relative Risk vs. Return Landscape
If you would invest 17,545 in Merck Company on September 2, 2024 and sell it today you would lose (3,455) from holding Merck Company or give up 19.69% of portfolio value over 90 days. Merck Company is producing return of less than zero assuming 1.5522% volatility of returns over the 90 days investment horizon. Simply put, 13% of all stocks have less volatile historical return distribution than Merck, and 99% of all equity instruments are likely to generate higher returns than the company over the next 90 trading days. Expected Return |
| Risk |
Merck Market Risk Analysis
Today, many novice investors tend to focus exclusively on investment returns with little concern for Merck's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Merck Company, and traders can use it to determine the average amount a Merck's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.
Sharpe Ratio = -0.2062
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| Cash | Small Risk | Average Risk | High Risk | Huge Risk |
| Negative Returns | MRK |
Estimated Market Risk
| 1.55 actual daily | 13 87% of assets are more volatile |
Expected Return
| -0.32 actual daily | 0 Most of other assets have higher returns |
Risk-Adjusted Return
| -0.21 actual daily | 0 Most of other assets perform better |
Based on monthly moving average Merck is not performing at its full potential. However, if added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Merck by adding Merck to a well-diversified portfolio.
Merck Fundamentals Growth
Merck Stock prices reflect investors' perceptions of the future prospects and financial health of Merck, and Merck fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Merck Stock performance.
| Current Valuation | 87.36 B | |||
| Price To Book | 2.69 X | |||
| Price To Sales | 3.49 X | |||
| Revenue | 19.69 B | |||
| EBITDA | 5.96 B | |||
| Total Debt | 7.93 B | |||
| Cash Flow From Operations | 4.62 B | |||
| Total Asset | 45.36 B | |||
About Merck Performance
By analyzing Merck's fundamental ratios, stakeholders can gain valuable insights into Merck's financial health, operational efficiency, and overall profitability, helping them make informed investment and management decisions. For instance, if Merck has a high ROA and ROE, it suggests that the company is efficiently using its assets and equity to generate substantial profits, making it an attractive investment. Conversely, if Merck has a low ROA and ROE, it may indicate underlying issues in asset and equity management, signaling a need for operational improvements.
Things to note about Merck Company performance evaluation
Checking the ongoing alerts about Merck for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Merck Company help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Merck Company generated a negative expected return over the last 90 days |
- Analyzing Merck's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Merck's stock is overvalued or undervalued compared to its peers.
- Examining Merck's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Merck's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Merck's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Merck's stock. These opinions can provide insight into Merck's potential for growth and whether the stock is currently undervalued or overvalued.
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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