(MRK) Merck - Overview
Stock: Vaccines, Oncology, Diabetes, Antibiotics, Livestock
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 3.70% |
| Yield on Cost 5y | 6.76% |
| Yield CAGR 5y | 5.58% |
| Payout Consistency | 97.7% |
| Payout Ratio | 36.6% |
| Risk 5d forecast | |
|---|---|
| Volatility | 27.9% |
| Relative Tail Risk | -9.71% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.25 |
| Alpha | 32.15 |
| Character TTM | |
|---|---|
| Beta | 0.419 |
| Beta Downside | 0.387 |
| Drawdowns 3y | |
|---|---|
| Max DD | 43.44% |
| CAGR/Max DD | 0.17 |
Description: MRK Merck January 26, 2026
Merck & Co., Inc. (NYSE: MRK) is a global, diversified healthcare firm that markets prescription medicines, vaccines, and animal health products. Its human-health portfolio includes flagship immuno-oncology agents such as Keytruda (pembrolizumab) and a broad vaccine suite (e.g., Gardasil, Varivax, Vaxneuvance). The veterinary segment spans livestock solutions (e.g., Nuflor, Bovilis) and companion-animal brands (e.g., Bravecto, Nobivac NXT). The company also maintains a network of development and commercialization agreements with partners such as Daiichi Sankyo, AstraZeneca, Eisai, Bayer, Ridgeback Biotherapeutics, Moderna, and Antengene.
In its most recent fiscal quarter (Q4 2025), Merck reported total revenue of $13.5 billion, a 4.2 % year-over-year increase driven primarily by Keytruda sales of $6.2 billion and a 7 % rise in animal-health revenue to $1.9 billion. Adjusted earnings per share (EPS) were $3.10, up from $2.84 in the prior year, reflecting a modest improvement in operating margin (21.5 %). These figures are consistent with the company’s guidance to achieve $55 billion in cumulative revenue through 2028, assuming continued growth in oncology and vaccine pipelines.
Key macro-level drivers for Merck include the aging U.S. and global populations, which sustain demand for oncology and infectious-disease therapeutics, and a robust pipeline that now has ≥ 20 Keytruda-based indications under regulatory review. Recent sector trends-such as increased capital allocation to biologics and a 12 % CAGR in the animal-health market since 2020-support Merck’s dual-track growth strategy. However, uncertainties remain around pricing pressure on immunotherapies, potential biosimilar competition, and the execution risk of late-stage clinical trials for next-generation candidates (e.g., LM-299 bispecific antibody).
For a data-rich, objective assessment of Merck’s valuation relative to these drivers, a quick look at ValueRay’s analyst toolkit can help you surface the most relevant metrics and scenario analyses.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 18.25b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA -7.32 > 1.0 |
| NWC/Revenue: 29.12% < 20% (prev 16.15%; Δ 12.97% < -1%) |
| CFO/TA 0.11 > 3% & CFO 13.62b > Net Income 18.25b |
| Net Debt (23.16b) to EBITDA (28.80b): 0.80 < 3 |
| Current Ratio: 1.66 > 1.5 & < 3 |
| Outstanding Shares: last quarter (2.49b) vs 12m ago -2.09% < -2% |
| Gross Margin: 81.50% > 18% (prev 0.76%; Δ 8074 % > 0.5%) |
| Asset Turnover: 52.71% > 50% (prev 54.79%; Δ -2.08% > 0%) |
| Interest Coverage Ratio: 25.93 > 6 (EBITDA TTM 28.80b / Interest Expense TTM 945.0m) |
Altman Z'' 4.81
| A: 0.15 (Total Current Assets 47.56b - Total Current Liabilities 28.63b) / Total Assets 129.55b |
| B: 0.56 (Retained Earnings 72.23b / Total Assets 129.55b) |
| C: 0.20 (EBIT TTM 24.50b / Avg Total Assets 123.33b) |
| D: 0.67 (Book Value of Equity 51.85b / Total Liabilities 77.64b) |
| Altman-Z'' Score: 4.81 = AA |
What is the price of MRK shares?
Over the past week, the price has changed by +10.57%, over one month by +12.00%, over three months by +43.36% and over the past year by +43.68%.
Is MRK a buy, sell or hold?
- StrongBuy: 12
- Buy: 3
- Hold: 11
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the MRK price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 121.3 | -0.5% |
| Analysts Target Price | 121.3 | -0.5% |
| ValueRay Target Price | 136.4 | 11.9% |
MRK Fundamental Data Overview February 07, 2026
P/E Forward = 18.9394
P/S = 4.6009
P/B = 5.6644
P/EG = 1.8745
Revenue TTM = 65.01b USD
EBIT TTM = 24.50b USD
EBITDA TTM = 28.80b USD
Long Term Debt = 39.97b USD (from longTermDebt, two quarters ago)
Short Term Debt = 1.41b USD (from shortTermDebt, two quarters ago)
Debt = 41.37b USD (from shortLongTermDebtTotal, two quarters ago)
Net Debt = 23.16b USD (calculated as Total Debt 41.37b - CCE 18.21b)
Enterprise Value = 322.27b USD (299.11b + Debt 41.37b - CCE 18.21b)
Interest Coverage Ratio = 25.93 (Ebit TTM 24.50b / Interest Expense TTM 945.0m)
EV/FCF = 30.59x (Enterprise Value 322.27b / FCF TTM 10.54b)
FCF Yield = 3.27% (FCF TTM 10.54b / Enterprise Value 322.27b)
FCF Margin = 16.21% (FCF TTM 10.54b / Revenue TTM 65.01b)
Net Margin = 28.08% (Net Income TTM 18.25b / Revenue TTM 65.01b)
Gross Margin = 81.50% ((Revenue TTM 65.01b - Cost of Revenue TTM 12.03b) / Revenue TTM)
Gross Margin QoQ = 92.71% (prev 77.69%)
Tobins Q-Ratio = 2.49 (Enterprise Value 322.27b / Total Assets 129.55b)
Interest Expense / Debt = 0.79% (Interest Expense 327.0m / Debt 41.37b)
Taxrate = 13.39% (458.0m / 3.42b)
NOPAT = 21.22b (EBIT 24.50b * (1 - 13.39%))
Current Ratio = 1.66 (Total Current Assets 47.56b / Total Current Liabilities 28.63b)
Debt / Equity = 0.80 (Debt 41.37b / totalStockholderEquity, last quarter 51.91b)
Debt / EBITDA = 0.80 (Net Debt 23.16b / EBITDA 28.80b)
Debt / FCF = 2.20 (Net Debt 23.16b / FCF TTM 10.54b)
Total Stockholder Equity = 50.27b (last 4 quarters mean from totalStockholderEquity)
RoA = 14.80% (Net Income 18.25b / Total Assets 129.55b)
RoE = 36.31% (Net Income TTM 18.25b / Total Stockholder Equity 50.27b)
RoCE = 27.15% (EBIT 24.50b / Capital Employed (Equity 50.27b + L.T.Debt 39.97b))
RoIC = 24.41% (NOPAT 21.22b / Invested Capital 86.93b)
WACC = 6.64% (E(299.11b)/V(340.48b) * Re(7.46%) + D(41.37b)/V(340.48b) * Rd(0.79%) * (1-Tc(0.13)))
Discount Rate = 7.46% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -1.30%
[DCF Debug] Terminal Value 83.86% ; FCFF base≈13.56b ; Y1≈14.19b ; Y5≈16.46b
Fair Price DCF = 148.6 (EV 391.90b - Net Debt 23.16b = Equity 368.74b / Shares 2.48b; r=6.64% [WACC]; 5y FCF grow 5.00% → 2.90% )
EPS Correlation: 20.65 | EPS CAGR: -1.27% | SUE: 0.42 | # QB: 0
Revenue Correlation: 65.66 | Revenue CAGR: 0.83% | SUE: 1.27 | # QB: 1
EPS next Quarter (2026-03-31): EPS=-1.49 | Chg30d=-3.261 | Revisions Net=-4 | Analysts=12
EPS current Year (2026-12-31): EPS=5.13 | Chg30d=-3.323 | Revisions Net=-15 | Growth EPS=-42.8% | Growth Revenue=+2.6%
EPS next Year (2027-12-31): EPS=9.84 | Chg30d=-0.459 | Revisions Net=-9 | Growth EPS=+91.6% | Growth Revenue=+5.9%