Merck (NYSE:MRK) Cyclically Adjusted Book per Share

: $17.13 (As of Sep. 2023)

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E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Book per Share and the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years.

Merck's adjusted book value per share for the three months ended in Sep. 2023 was $16.269. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is $17.13 for the trailing ten years ended in Sep. 2023.

During the past 12 months, Merck's average Cyclically Adjusted Book Growth Rate was 0.80% per year. During the past 10 years, the average Cyclically Adjusted Book Growth Rate was 2.80% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Cyclically Adjusted Book Growth Rate using Cyclically Adjusted Book per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted Book Growth Rate of Merck was 17.20% per year. The lowest was -1.00% per year. And the median was 7.50% per year.

As of today (2023-12-09), Merck's current stock price is $103.75. Merck's Cyclically Adjusted Book per Share for the quarter that ended in Sep. 2023 was $17.13. Merck's Cyclically Adjusted PB Ratio of today is 6.06.

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Merck was 6.89. The lowest was 3.04. And the median was 4.03.

Merck Cyclically Adjusted Book per Share Historical Data

The historical data trend for Merck's Cyclically Adjusted Book per Share 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 Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Cyclically Adjusted Book per Share

16.90

16.88

16.14

16.42

16.89

Merck Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Cyclically Adjusted Book per Share																17.00	16.89	17.07	17.10	17.13

Competitive Comparison

For the Drug Manufacturers - General subindustry, Merck's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio 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 Cyclically Adjusted PB Ratio Distribution

For the Drug Manufacturers industry and Healthcare sector, Merck's Cyclically Adjusted PB Ratio distribution charts can be found below:

* The bar in red indicates where Merck's Cyclically Adjusted PB Ratio falls into.

Merck Cyclically Adjusted Book per Share Calculation

What is Cyclically Adjusted Book per Share? How do we calculate Cyclically Adjusted Book per Share?

Cyclically Adjusted Book per Share is the average of the inflation adjusted Book Value per Share of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the Cyclically Adjusted Book per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the book value per share from 2001 through 2010.

We adjusted the 2001 book value per share data with the total inflation from 2001 through 2010 to the equivalent book value in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's book value is $1 a share in 2001, then the 2001's equivalent book value in 2010 is $1.4 a share. If Wal-Mart's book value is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 book value in 2010 is $1.35. So on and so forth, you get the equivalent book value per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted Book per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.

For example, Merck's adjusted Book Value per Share data for the three months ended in Sep. 2023 was:

Adj_Book	=	Book Value per Share	/	CPI of Sep. 2023 (Change)	*	Current CPI (Sep. 2023)
	=	16.269	/	129.8595	*	129.8595
	=	16.269

Current CPI (Sep. 2023) = 129.8595.

Merck Quarterly Data

	Book Value per Share	CPI	Adj_Book
201312	16.999	98.326	22.451
201403	17.059	99.695	22.221
201406	16.677	100.560	21.536
201409	15.808	100.428	20.441
201412	17.140	99.070	22.467
201503	16.888	99.621	22.014
201506	16.448	100.684	21.214
201509	16.268	100.392	21.043
201512	16.064	99.792	20.904
201603	15.817	100.470	20.444
201606	15.677	101.688	20.020
201609	15.840	101.861	20.194
201612	14.584	101.863	18.592
201703	14.537	102.862	18.352
201706	14.471	103.349	18.183
201709	14.029	104.136	17.494
201712	12.733	104.011	15.897
201803	12.504	105.290	15.422
201806	12.183	106.317	14.881
201809	12.194	106.507	14.868
201812	10.299	105.998	12.617
201903	10.661	107.251	12.908
201906	10.766	108.070	12.937
201909	10.521	108.329	12.612
201912	10.204	108.420	12.222
202003	10.382	108.902	12.380
202006	10.929	108.767	13.048
202009	11.537	109.815	13.643
202012	10.006	109.897	11.824
202103	10.645	111.754	12.370
202106	13.145	114.631	14.891
202109	14.174	115.734	15.904
202112	15.107	117.630	16.678
202203	16.170	121.301	17.311
202206	17.070	125.017	17.731
202209	17.549	125.227	18.198
202212	18.122	125.222	18.793
202303	18.457	127.348	18.821
202306	15.237	128.729	15.371
202309	16.269	129.860	16.269

Add all the adjusted book value per share together and divide the count will get our Cyclically Adjusted Book per Share.

Merck (NYSE:MRK) Cyclically Adjusted Book per Share Explanation

If a company grows much fast than inflation, Cyclically Adjusted Book per Share may underestimate the company's equity. Cyclically Adjusted PB Ratio can seem to be too high even the actual PB Ratio is low.

For the Cyclically Adjusted PB Ratio, the book value of the past 10 years are inflation-adjusted and averaged. The result is used for P/B calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted PB Ratio is also called CAPB Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.

Merck's Cyclically Adjusted PB Ratio of today is calculated as

Cyclically Adjusted PB Ratio	=	Share Price	/	Cyclically Adjusted Book per Share
	=	103.75	/	17.13
	=	6.06

During the past 13 years, the highest Cyclically Adjusted PB Ratio of Merck was 6.89. The lowest was 3.04. And the median was 4.03.

Be Aware

Cyclically Adjusted PB Ratio works better for cyclical companies. It gives you a better idea on the company's real book value.

Merck Cyclically Adjusted Book per Share Related Terms

Thank you for viewing the detailed overview of Merck's Cyclically Adjusted Book per Share provided by GuruFocus.com. Please click on the following links to see related term pages.

Merck (NYSE:MRK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Merck & Co Inc (NYSE:MRK) » Definitions » Cyclically Adjusted Book per Share

Comparable Companies

Traded in Other Exchanges

MRK:Peru MRK:Mexico 6MKd:UK 0QAH:UK 6MK:Germany 6MK:Germany 6MK:Germany 6MK:Germany MRK:Chile MRCK34:Brazil MRK:Austria MRK:Argentina

Address

126 East Lincoln Avenue, Rahway, NJ, USA, 07065

Website

https://www.merck.com

Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent pediatric diseases as well as human papillomavirus, or HPV. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the company's sales are generated in the United States.

Executives

Joseph Romanelli	officer: President, Human Health Int?l	126 EAST LINCOLN AVENUE, RAHWAY NJ 07065
Chirfi Guindo	officer: Chief Marketing Officer	C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Baker Douglas M Jr	director	370 WBASHA ST NORTH, ST PAUL MN 55102
Johannes Jacobus Oosthuizen	officer: SVP, U.S. Market	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Arpa Garay	officer: SVP Human Health Global Mktg.	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Cristal N Downing	officer: Chief Comm. & Public Afrs Ofcr	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Michael A Klobuchar	officer: EVP - Chief Strategy Officer	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Lisa Lecointe-cephas	officer: SVP Chief Ethics & Com Officer	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Caroline Litchfield	officer: EVP & CFO	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Stephen Mayo	director	2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Dean Y Li	officer: Executive VP & President, MRL	2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
David Michael Williams	officer: EVP,Chief Info&Digital Officer	MERCK & CO., INC., 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Risa J Lavizzo-mourey	director	GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Christine E Seidman	director	MERCK & CO., INC., 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Kathy J Warden	director	2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042