Merck Valuation
| MRK Stock | USD 99.86 2.42 2.48% |
At this time, the firm appears to be undervalued. Merck Company secures a last-minute Real Value of $105.53 per share. The latest price of the firm is $99.86. Our model forecasts the value of Merck Company from analyzing the firm fundamentals such as Return On Equity of 0.28, profit margin of 0.19 %, and Current Valuation of 270.03 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Merck's valuation include:
Price Book 5.5388 | Enterprise Value 270 B | Enterprise Value Ebitda 14.0353 | Price Sales 3.9017 | Forward PE 10.0604 |
Undervalued
Today
Please note that Merck's price fluctuation is very steady at this time. Calculation of the real value of Merck Company is based on 3 months time horizon. Increasing Merck's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Merck's intrinsic value may or may not be the same as its current market price of 99.86, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 99.86 | Real 105.53 | Target 117.2 | Hype 99.86 | Naive 97.3 |
The intrinsic value of Merck's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Merck's stock price.
Estimating the potential upside or downside of Merck Company helps investors to forecast how Merck stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Merck more accurately as focusing exclusively on Merck's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Merck's intrinsic value based on its ongoing forecasts of Merck's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Merck's closest peers.
Merck Cash |
|
Merck Valuation Trend
Knowing Merck's actual value is paramount for traders when making sound investment determinations. Using both Merck's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Merck Revenue by Product
Merck Total Value Analysis
Merck Company is now projected to have company total value of 270.03 B with market capitalization of 246.49 B, debt of 36.27 B, and cash on hands of 12.69 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Merck fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
270.03 B | 246.49 B | 36.27 B | 12.69 B |
Merck Investor Information
About 79.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.07. Merck Company last dividend was issued on the 16th of September 2024. The entity had 1048:1000 split on the 3rd of June 2021. Based on the analysis of Merck's profitability, liquidity, and operating efficiency, Merck Company may be sliding down financialy. It has an above-average probability of going through some form of financial hardship next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Profit Margin | 0.0467 | 0.0491 |
|
| |||||
| Total Cash From Operating Activities | 8.8 B | 13 B |
|
| |||||
| Operating Income | 5.6 B | 3 B |
|
|
Merck Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Merck has an asset utilization ratio of 56.35 percent. This suggests that the Company is making $0.56 for each dollar of assets. An increasing asset utilization means that Merck Company is more efficient with each dollar of assets it utilizes for everyday operations.Merck Ownership Allocation
Merck Company maintains a total of 2.53 Billion outstanding shares. The majority of Merck outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Merck Company to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Merck Company. Please pay attention to any change in the institutional holdings of Merck as this could imply that something significant has changed or is about to change at the company. Please note that on November 14, 2024, Representative Michael McCaul of US Congress acquired $50k to $100k worth of Merck Company's common stock.Merck Profitability Analysis
The company reported the last year's revenue of 60.12 B. Total Income to common stockholders was 365 M with profit before taxes, overhead, and interest of 42.08 B.Merck Past Distributions to stockholders
About Merck Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Merck Company. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Merck Company based exclusively on its fundamental and basic technical indicators. By analyzing Merck's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Merck's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Merck. We calculate exposure to Merck's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Merck's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 44 B | 46.2 B | |
| Pretax Profit Margin | 0.03 | 0.03 | |
| Operating Profit Margin | 0.05 | 0.05 | |
| Net Profit Margin | 0.01 | 0.01 | |
| Gross Profit Margin | 0.73 | 0.74 |
Merck Quarterly Retained Earnings |
|
A single share of Merck represents a small ownership stake in the entity. As a stockholder of Merck, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Merck Dividends Analysis For Valuation
At this time, Merck's Dividend Payout Ratio is quite stable compared to the past year. Dividend Paid And Capex Coverage Ratio is expected to rise to 1.60 this year, although the value of Dividends Paid will most likely fall to about 4 B. . Price Earnings Ratio is expected to rise to 817.65 this year, although the value of Retained Earnings will most likely fall to about 32.6 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 7.4 B | 4 B | |
| Dividend Yield | 0.03 | 0.02 | |
| Dividend Payout Ratio | 20.40 | 21.42 | |
| Dividend Paid And Capex Coverage Ratio | 1.15 | 1.60 |
There are various types of dividends Merck can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Merck shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Merck Company directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Merck pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Merck by the value of the dividends paid out.
Merck Growth Indicators
Investing in growth stocks can be very risky. If the company such as Merck does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 2.5 B | |
| Quarterly Earnings Growth Y O Y | -0.333 | |
| Forward Price Earnings | 10.0604 |
Merck Current Valuation Indicators
Merck's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Merck's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Merck, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Merck's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Merck's worth.When determining whether Merck Company is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Merck Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Merck Company Stock. Highlighted below are key reports to facilitate an investment decision about Merck Company Stock: Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Merck Company. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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.