This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
Median PS Value is calculated as trailing twelve months (TTM) Revenue per Share times 10-Year median PS Ratio. Merck KGaA's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 was $10.405. Merck KGaA's 10-Year median PS Ratio is 2.9505. Therefore, the Median PS Value for today is $30.70.
As of today (2024-04-25), Merck KGaA's share price is $32.1048. Merck KGaA's Median PS Value is $30.70. Therefore, Merck KGaA's Price to Median PS Value for today is 1.05.
The historical rank and industry rank for Merck KGaA's Median PS Value or its related term are showing as below:
MKKGY'
s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 1 Med: 1.16 Max: 1.8
Current: 1.05
During the past 13 years, the highest Price to Median PS Value of Merck KGaA was 1.80. The lowest was 1.00. And the median was 1.16.
MKKGY's Price-to-Median-PS-Value is ranked worse than 66.8% of 500
companies
in the Drug Manufacturers industry
Industry Median: 0.79
vs MKKGY: 1.05
Merck KGaA Median PS Value Historical Data
The historical data trend for Merck KGaA's Median PS Value can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Merck KGaA's Median PS Value
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Price-to-Median-PS-Value, along with its competitors' market caps and Price-to-Median-PS-Value data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Merck KGaA's Price-to-Median-PS-Value Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Price-to-Median-PS-Value distribution charts can be found below:
* The bar in red indicates where Merck KGaA's Price-to-Median-PS-Value falls into.
Merck KGaA Median PS Value Calculation
Merck KGaA's Median PS Value for today is calculated as
10-Year Median PS Ratio is 2.9505.
Merck KGaA's Revenue per Share for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $10.405.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Merck KGaA (OTCPK:MKKGY) Median PS Value Explanation
This valuation method assumes that the stock valuation will revert to its historical (10-Year) mean in terms of PS Ratio. The reason we use PS Ratio instead of PE Ratio or PB Ratio
is because PS Ratio is independent of profit margin, and can be applied to a broader range of situations.
It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company's value.
Merck KGaA's Price to Median PS Value for today is calculated as
Price to Median PS Value
=
Share Price
/
Median PS Value
=
32.1048
/
30.70
=
1.05
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Merck KGaA Median PS Value Related Terms
Thank you for viewing the detailed overview of Merck KGaA's Median PS Value provided by GuruFocus.com. Please click on the following links to see related term pages.
Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (47% of 2022 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (35%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (18%), the company offers specialty materials to manufacture a variety of products, such as semiconductors, flat-screen televisions, automobiles, and cosmetics. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
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