Merck Company Stock Beta
| MRK Stock | USD 99.18 0.68 0.68% |
Merck Company fundamentals help investors to digest information that contributes to Merck's financial success or failures. It also enables traders to predict the movement of Merck Stock. The fundamental analysis module provides a way to measure Merck's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Merck stock.
Merck | Beta |
Merck Company Company Beta Analysis
Merck's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Merck Beta | 0.41 |
Most of Merck's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Merck Company is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Merck Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Merck is extremely important. It helps to project a fair market value of Merck Stock properly, considering its historical fundamentals such as Beta. Since Merck's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Merck's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Merck's interrelated accounts and indicators.
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In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Merck Company has a Beta of 0.411. This is 52.21% lower than that of the Pharmaceuticals sector and significantly higher than that of the Health Care industry. The beta for all United States stocks is notably lower than that of the firm.
Merck Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Merck's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Merck could also be used in its relative valuation, which is a method of valuing Merck by comparing valuation metrics of similar companies.Merck is currently under evaluation in beta category among its peers.
Merck ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Merck's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Merck's managers, analysts, and investors.Environmental | Governance | Social |
Merck Institutional Holders
Institutional Holdings refers to the ownership stake in Merck that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Merck's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Merck's value.| Shares | T. Rowe Price Associates, Inc. | 2024-06-30 | 24.7 M | Legal & General Group Plc | 2024-06-30 | 23.4 M | Deutsche Bank Ag | 2024-06-30 | 20.8 M | Bank Of New York Mellon Corp | 2024-06-30 | 19.2 M | Charles Schwab Investment Management Inc | 2024-09-30 | 18.8 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 17.8 M | Ameriprise Financial Inc | 2024-06-30 | 16.6 M | Franklin Resources Inc | 2024-09-30 | 16.1 M | Amvescap Plc. | 2024-06-30 | 15.8 M | Vanguard Group Inc | 2024-09-30 | 249.8 M | Blackrock Inc | 2024-06-30 | 207.3 M |
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.
Merck Fundamentals
| Return On Equity | 0.28 | ||||
| Return On Asset | 0.11 | ||||
| Profit Margin | 0.19 % | ||||
| Operating Margin | 0.26 % | ||||
| Current Valuation | 274.43 B | ||||
| Shares Outstanding | 2.53 B | ||||
| Shares Owned By Insiders | 0.06 % | ||||
| Shares Owned By Institutions | 79.46 % | ||||
| Number Of Shares Shorted | 26.23 M | ||||
| Price To Earning | 18.05 X | ||||
| Price To Book | 5.64 X | ||||
| Price To Sales | 3.97 X | ||||
| Revenue | 60.12 B | ||||
| Gross Profit | 42.08 B | ||||
| EBITDA | 6.91 B | ||||
| Net Income | 365 M | ||||
| Cash And Equivalents | 12.69 B | ||||
| Cash Per Share | 4.44 X | ||||
| Total Debt | 36.27 B | ||||
| Debt To Equity | 0.68 % | ||||
| Current Ratio | 1.46 X | ||||
| Book Value Per Share | 17.58 X | ||||
| Cash Flow From Operations | 13.01 B | ||||
| Short Ratio | 2.75 X | ||||
| Earnings Per Share | 4.78 X | ||||
| Price To Earnings To Growth | 0.07 X | ||||
| Target Price | 130.85 | ||||
| Number Of Employees | 70 K | ||||
| Beta | 0.41 | ||||
| Market Capitalization | 250.89 B | ||||
| Total Asset | 106.67 B | ||||
| Retained Earnings | 53.9 B | ||||
| Working Capital | 6.47 B | ||||
| Current Asset | 29.76 B | ||||
| Current Liabilities | 19.2 B | ||||
| Annual Yield | 0.03 % | ||||
| Five Year Return | 2.99 % | ||||
| Net Asset | 106.67 B | ||||
| Last Dividend Paid | 3.04 |
About Merck Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Merck Company's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Merck using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Merck Company based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Is Pharmaceuticals space 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.
Quarterly Earnings Growth (0.33) | Dividend Share 3.04 | Earnings Share 4.78 | Revenue Per Share 24.931 | Quarterly Revenue Growth 0.044 |
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 if Merck is a good investment 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.