Merck & Company Inc (MRK) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Merck & Company Inc stock (MRK) is currently trading at $119.37. Merck & Company Inc PE ratio is 15.98. Merck & Company Inc PS ratio (Price-to-Sales) is 4.43. Analyst consensus price target for MRK is $128.04. WallStSmart rates MRK as Hold.
Merck & Company Inc (MRK) stock price prediction for 2030: Base case $145.70. Bull case $182.12. Bear case $109.27. See full MRK 2030 price forecast and methodology on WallStSmart.
- MRK PE ratio analysis and historical PE chart
- MRK PS ratio (Price-to-Sales) history and trend
- MRK intrinsic value — DCF, Graham Number, EPV models
- MRK stock price prediction 2025 2026 2027 2028 2029 2030
- MRK fair value vs current price
- MRK insider transactions and insider buying
- Is MRK undervalued or overvalued?
- Merck & Company Inc financial analysis — revenue, earnings, cash flow
- MRK Piotroski F-Score and Altman Z-Score
- MRK analyst price target and Smart Rating
Merck & Company Inc
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MRK Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Merck & Company Inc (MRK)
MRK trades 141% above its Graham fair value of $49.50, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Merck & Company Inc (MRK) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in market cap, return on equity, operating margin. Concerns around peg ratio and price/book. Fundamentals are solid but monitor weak areas for improvement.
Merck & Company Inc (MRK) Key Strengths (5)
Mega-cap company, among the largest in the world
Every $100 of shareholder equity generates $37 in profit
Keeps $33 of every $100 in revenue after operating costs
Keeps $28 of every $100 in revenue as net profit
81.37% of shares held by major funds and institutions
Merck & Company Inc (MRK) Areas to Watch (5)
Earnings declining -19.30%, profits shrinking
Very expensive relative to growth, significant premium
Very expensive at 5.4x book value
Premium valuation at 4.4x annual revenue
Modest revenue growth at 5.00%
Merck & Company Inc (MRK) Detailed Analysis Report
Overall Assessment
This company scores 59/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 5 register as strengths (avg 10.0/10) while 5 fall into concern territory (avg 2.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with Return on Equity at 36.90%, Operating Margin at 32.80%, Profit Margin at 28.10%.
The Bear Case
The primary concerns are EPS Growth, PEG Ratio, Price/Book. Some valuation metrics including PEG Ratio (3.48), Price/Sales (4.43), Price/Book (5.37) suggest expensive pricing. Growth concerns include Revenue Growth at 5.00%, EPS Growth at -19.30%, which may limit upside.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 36.90% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 5.00% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Market Cap, Return on Equity) and negatives (EPS Growth, PEG Ratio). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
MRK Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
MRK's Price-to-Sales ratio of 4.43x trades at a 30% premium to its historical average of 3.41x (91th percentile). The current valuation is 14% below its historical high of 5.14x set in Nov 2007, and 119% above its historical low of 2.02x in Sep 2011.
WallStSmart Analysis Synopsis
Data-driven financial summary for Merck & Company Inc (MRK) · HEALTHCARE › DRUG MANUFACTURERS - GENERAL
The Big Picture
Merck & Company Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 65.0B with 5% growth year-over-year. Profit margins are strong at 28.1%, reflecting pricing power and operational efficiency.
Key Findings
ROE of 36.9% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Profit margin of 28.1% and operating margin of 32.8% demonstrate strong pricing power and operational efficiency.
What to Watch Next
Sector dynamics: monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive moves, and regulatory changes that could impact Merck & Company Inc.
Bottom Line
Merck & Company Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(44 last 3 months)
| Insider | Type | Shares |
|---|---|---|
GUINDO, CHIRFI Chief Marketing Officer | Sell | -10,000 |
| Insider | Type | Shares |
|---|---|---|
LI, DEAN Y Executive VP & President, MRL | Sell | -10,235 |
| Insider | Type | Shares |
|---|---|---|
GUINDO, CHIRFI Chief Marketing Officer | Sell | -20,000 |
Data sourced from SEC Form 4 filings
Last updated: 12:57:05 PM
About Merck & Company Inc(MRK)
NYSE
HEALTHCARE
DRUG MANUFACTURERS - GENERAL
USA
Merck & Co. is an American multinational pharmaceutical company headquartered in Kenilworth, New Jersey. It is named after the Merck family, which set up Merck Group in Germany in 1668.