Health Care · Pharmaceuticals · US stock · price as of 16 Oct 2026
Key indicators
Price
$145.95
52-week range
$79.67 – $156.00
Market cap
$360.5B
P/E (trailing)
114.4×
EV / EBITDA
53.0×
Free-cash-flow yield
4.5%
Dividend yield
2.3%
Revenue (last 12 months)
$66.6B
Revenue growth (3y a year)
3.1%
Operating margin
11.6%
Return on invested capital
6.1%
Net debt / EBITDA
6.1×
Fair value
Blended fair value$52.06 range $41 – $52
Versus priceOvervalued−64% to fair value
Peer multiples
$56.96
Fundamentals-adjusted multiple
$47.17
10-year DCF (market-scaled)
$12.69
Earnings power value (floor, not blended)
$38.28
Model uncertainty
High
X-Ray Score
32/ 100 · High confidence · ahead of 13% of sector peers
Valuation20
Growth33
Profitability44
Financial health21
Dividends56
Five-year price chart navy: price · brown: 200-day average · blue band: fair value range
Executive summary
Prescription medicines, vaccines and animal health products make up the business of Merck, a global pharmaceutical company that develops, makes and markets them. Its cancer immunotherapy Keytruda and the human papillomavirus vaccine Gardasil are among its major products. It also supplies medicines for diabetes, infectious disease and other conditions. Customers include wholesalers, pharmacies, hospitals, governments and veterinarians. The business is organised mainly into a pharmaceutical division and an animal health division.
Revenue of $66.6 billion over the last twelve months comes from patented medicines, vaccines and animal health products. Revenue has grown at 3.1% a year across the last three years. The operating margin is 11.6%, the business earns 6% on the capital invested in it, and net debt is 6.1 times EBITDA. The dividend yield is 2.3%.
StocksXray gives Merck & Co., Inc. an X-Ray Score of 32 out of 100 (high confidence), ahead of 13% of the S&P 500 stocks in its sector. Its strongest lens is dividends (56) and its weakest is valuation (20).
Our fair value blend is $52.06 (range $41.10 to $52.06). At $145.95 the stock trades 180% above that blend, so the label is "Overvalued" with high model uncertainty. Fair value is a range, not a price target.
XStocksXray
Merck & Co., Inc. (MRK)
Valuation history multiples at each fiscal year-end price; the last column uses today's price and the last twelve months
FY2021
FY2022
FY2023
FY2024
FY2025
Now
Price
$66.39
$99.21
$100.21
$93.94
$103.13
$145.95
Market cap
$168.5B
$252.2B
$255.2B
$238.7B
$258.5B
$360.5B
P/E
12.9×
17.4×
715.8×
13.9×
14.2×
114.4×
EV / revenue
4.0×
4.5×
4.7×
4.1×
4.5×
6.1×
EV / EBITDA
13.2×
15.5×
93.3×
12.4×
13.1×
53.0×
Price / free cash flow
–
17.1×
27.9×
13.2×
20.9×
22.4×
Free-cash-flow yield
–
5.8%
3.6%
7.6%
4.8%
4.5%
Price / book
4.4×
5.5×
6.8×
5.2×
4.9×
8.6×
Dividend yield
3.98%
2.82%
2.95%
3.32%
3.18%
2.33%
Fundamentals checklist ● 1 Good · ● 7 Average · ● 8 Bad · each check graded against the sector
Cash quality
Earnings backed by cash−12.9%Good
Free-cash-flow yield4.5%Average
Risk models
Altman Z score2.9×Average
Piotroski F-Score4 of 9Bad
Growth
EPS growth (3y)8.4%Average
Free-cash-flow growth (3y)−5.6%Bad
Revenue growth (3y)3.1%Average
Growth consistency80%Bad
Balance sheet
Current ratio1.3×Average
Net debt / EBITDA6.1×Bad
Interest cover4.4×Bad
Valuation
Fair value vs price0.4×Bad
EBIT / EV yield1.9%Bad
Profitability
Return on invested capital6.1%Bad
Operating margin11.6%Average
Gross profitability37.4%Average
XStocksXray
Merck & Co., Inc. (MRK)
Financials US$ millions, from SEC filings; last column is the last twelve months
Income statement
FY21
FY22
FY23
FY24
FY25
LTM
Revenue
48,704
59,283
60,115
64,168
65,011
66,569
Gross profit
35,078
41,872
43,989
48,975
48,629
48,573
Operating income
14,685
17,406
3,035
21,207
22,424
7,690
Net income
12,345
14,519
365
17,117
18,254
3,173
Diluted EPS ($)
5.14
5.71
0.14
6.74
7.28
1.28
Free cash flow
–
14,707
9,143
18,096
12,360
16,063
Gross margin
72.0%
70.6%
73.2%
76.3%
74.8%
73.0%
Operating margin
30.2%
29.4%
5.0%
33.0%
34.5%
11.6%
Net margin
25.3%
24.5%
0.6%
26.7%
28.1%
4.8%
Balance sheet
FY21
FY22
FY23
FY24
FY25
LTM
Total assets
105,694
109,160
106,675
117,106
136,866
129,802
Cash
8,096
12,694
6,841
13,242
14,565
6,849
Total debt
32,990
30,445
34,983
36,962
49,050
53,906
Equity
38,184
45,991
37,581
46,313
52,606
41,933
Dividend per share ($)
2.64
2.80
2.96
3.12
3.28
3.36
Revenue and net income US$ billions: navy revenue, teal net income
Every number comes from SEC filings, end-of-day prices and the StocksXray models described on the methodology page. The X-Ray Score ranks each metric against the company's own sector. Fair value blends three models and carries a typical error of about 40%, so treat it as a range. Analyst ratings, price targets and earnings-call summaries are not part of this report. Educational research, not financial advice; read the disclaimer.