GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck KGaA (XTER:MRK) » Definitions » Beta

Merck KGaA (XTER:MRK) Beta : 0.89 (As of Dec. 13, 2024)


View and export this data going back to 1995. Start your Free Trial

What is Merck KGaA Beta?

Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2024-12-13), Merck KGaA's Beta is 0.89.


Merck KGaA Beta Historical Data

The historical data trend for Merck KGaA's Beta 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.

* Premium members only.

Merck KGaA Beta Chart

Merck KGaA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beta
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.29 0.44 0.48 0.68 1.00

Merck KGaA Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beta Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.62 1.00 0.98 0.98 0.84

Competitive Comparison of Merck KGaA's Beta

For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Beta, along with its competitors' market caps and Beta 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 Beta Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Beta distribution charts can be found below:

* The bar in red indicates where Merck KGaA's Beta falls into.



Merck KGaA Beta Calculation

Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.


Merck KGaA  (XTER:MRK) Beta Explanation

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.

Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)


Merck KGaA Beta Related Terms

Thank you for viewing the detailed overview of Merck KGaA's Beta provided by GuruFocus.com. Please click on the following links to see related term pages.


Merck KGaA Business Description

Address
Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293
Merck KGaA operates in three main segments: life sciences, performance materials, and healthcare. The life sciences segment (44% of 2023 sales) primarily provides laboratory consumables and services to researchers in academia and applied fields, including the biopharmaceutical industry. In the healthcare segment (38%), Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In its electronics segment (17%), 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.
Executives
Peter Guenter Member of the Executive Board
Dr. Matthias Heinzel Member of the Executive Board
Belén Garijo Lopez Chair of the Executive Board
Dr. Marcus Kuhnert Board of Directors