Merck & Co., Inc. (MRK) Valuation
Historical valuation analysis based on 1279 data points (2021-09-14 to 2026-10-16)
Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. In cancer, the firm's immuno-oncology pl...
Merck & Co., Inc. (MRK) currently trades at a P/E ratio of 113.48 (historical range: 10.65–146.83, median: 21.52), placing it at the 93th percentile — expensive relative to its history, P/S ratio of 5.41 (range: 2.90–5.80, 94th percentile — expensive relative to its history), EV/EBITDA of 24.06 (range: 10.47–93.93, 63th percentile).
Over the historical period (2021-09-14 to 2026-10-16), Merck & Co., Inc.'s P/E ratio has expanded by 16% over the observed period (from an average of 35.8 to 41.4).
Merck & Co., Inc. trades well above its own historical valuation range across most metrics.
Historical Valuation Metrics
| Metric | Current | Median | %ile | Assessment |
|---|---|---|---|---|
| P/E Ratio | 113.48 | 21.52 | 93th | expensive relative to its history |
| P/S Ratio | 5.41 | 4.41 | 94th | expensive relative to its history |
| EV/EBITDA | 24.06 | 20.38 | 63th | above its historical average |
| FCF Yield | 4.46% | 4.96% | 37th | above its historical average |
Merck & Co., Inc. (MRK) Valuation & P/E History
Merck & Co., Inc. (MRK) is a US-listed stock operating in the Healthcare sector, specifically the Drug Manufacturers - General industry currently trading at $145.26 with a market capitalization of $358.4 billion. This page provides historical valuation analysis for MRK based on 1279 data points covering 2021-09-14 to 2026-10-16. The P/E ratio of 113.48 is above the historical median of 21.52, placing MRK at the 93th percentile of its valuation range. The P/S ratio of 5.41 compares to a median of 4.41.
MRK Valuation Metrics & Historical Range
The valuation table above shows Merck & Co., Inc.'s current and historical valuation multiples, including P/E ratio, P/S ratio, EV/EBITDA, FCF yield, and dividend yield. Each metric is compared to its own historical range to determine whether MRK is currently trading above or below its typical valuation levels.
- P/E ratio: Price-to-earnings measures how much investors pay per dollar of earnings. A P/E above the historical median suggests MRK is expensively valued; below the median suggests it is cheap.
- P/S ratio: Price-to-sales is useful for companies with volatile or negative earnings. Lower P/S relative to history may indicate value.
- EV/EBITDA: Enterprise value to EBITDA adjusts for debt and cash, providing a capital-structure-neutral valuation measure for Merck & Co., Inc..
- FCF yield: Free cash flow yield shows the cash return relative to market price. Higher yields may indicate undervaluation.
Is MRK Overvalued or Undervalued?
Merck & Co., Inc. trades well above its own historical valuation range across most metrics. The overall valuation percentile of 83 combines P/E, P/S, and EV/EBITDA percentiles into a single measure of how expensive MRK is relative to its own history. A percentile below 25 suggests the stock may be undervalued, while a percentile above 75 suggests it may be overvalued.
However, valuation is only one factor in investment decisions. A stock can remain "overvalued" for years if growth accelerates, or "undervalued" if the business deteriorates. Always combine valuation analysis with financial statement analysis and the full MRK analysis page for a complete picture.
Valuation data is computed from historical price and fundamental data via Polygon.io and Finnhub.MRK trades on NYSE/NASDAQ. This page is for informational purposes only and is not financial advice.