Merck Company Stock Market Value
| MRK Stock | USD 99.86 2.42 2.48% |
| Symbol | Merck |
Merck Company Price To Book Ratio
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 4.82 | 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.
Merck 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Merck's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Merck.
| 12/02/2022 |
| 11/21/2024 |
If you would invest 0.00 in Merck on December 2, 2022 and sell it all today you would earn a total of 0.00 from holding Merck Company or generate 0.0% return on investment in Merck over 720 days. Merck is related to or competes with Johnson Johnson, Small Cap, Freedom Holding, Gfl Environmental, Growth Fund, Spring Valley, and Gold Fields. Merck Co., Inc. operates as a healthcare company worldwide More
Merck Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Merck's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Merck Company upside and downside potential and time the market with a certain degree of confidence.
| Information Ratio | (0.30) | |||
| Maximum Drawdown | 4.89 | |||
| Value At Risk | (2.13) | |||
| Potential Upside | 1.68 |
Merck Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Merck's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Merck's standard deviation. In reality, there are many statistical measures that can use Merck historical prices to predict the future Merck's volatility.| Risk Adjusted Performance | (0.16) | |||
| Jensen Alpha | (0.26) | |||
| Total Risk Alpha | (0.37) | |||
| Treynor Ratio | (1.64) |
Merck Company Backtested Returns
Merck Company has Sharpe Ratio of -0.19, which conveys that the firm had a -0.19% return per unit of risk over the last 3 months. Merck exposes twenty-three different technical indicators, which can help you to evaluate volatility embedded in its price movement. Please verify Merck's Risk Adjusted Performance of (0.16), standard deviation of 1.1, and Mean Deviation of 0.832 to check out the risk estimate we provide. The company secures a Beta (Market Risk) of 0.15, which conveys not very significant fluctuations relative to the market. 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 -0.22%. Please make sure to verify Merck's treynor ratio, kurtosis, as well as the relationship between the Kurtosis and day typical price , to decide if Merck Company performance from the past will be repeated at some point in the near future.
Auto-correlation | 0.50 |
Modest predictability
Merck Company has modest predictability. Overlapping area represents the amount of predictability between Merck time series from 2nd of December 2022 to 27th of November 2023 and 27th of November 2023 to 21st of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Merck Company price movement. The serial correlation of 0.5 indicates that about 50.0% of current Merck price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.5 | |
| Spearman Rank Test | 0.01 | |
| Residual Average | 0.0 | |
| Price Variance | 86.08 |
Merck Company lagged returns against current returns
Autocorrelation, which is Merck stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Merck's stock expected returns. We can calculate the autocorrelation of Merck returns to help us make a trade decision. For example, suppose you find that Merck has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Merck regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Merck stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Merck stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Merck stock over time.
Current vs Lagged Prices |
| Timeline |
Merck Lagged Returns
When evaluating Merck's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Merck stock have on its future price. Merck autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Merck autocorrelation shows the relationship between Merck stock current value and its past values and can show if there is a momentum factor associated with investing in Merck Company.
Regressed Prices |
| Timeline |
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Merck technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.