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Merck (NYSE:MRK) Cyclically Adjusted FCF per Share

: $3.87 (As of Dec. 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 FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

Merck's adjusted free cash flow per share for the three months ended in Dec. 2023 was $-0.292. Add all the adjusted free cash flow per share for the past 10 years together and divide the count will get our Cyclically Adjusted FCF per Share, which is $3.87 for the trailing ten years ended in Dec. 2023.

During the past 12 months, Merck's average Cyclically Adjusted FCF Growth Rate was 1.00% per year. During the past 3 years, the average Cyclically Adjusted FCF Growth Rate was 6.80% per year. During the past 5 years, the average Cyclically Adjusted FCF Growth Rate was 5.90% per year. During the past 10 years, the average Cyclically Adjusted FCF Growth Rate was 3.20% 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 FCF Growth Rate using Cyclically Adjusted FCF per Share data.

During the past 13 years, the highest 3-Year average Cyclically Adjusted FCF Growth Rate of Merck was 15.30% per year. The lowest was -3.70% per year. And the median was 5.40% per year.

As of today (2024-02-29), Merck's current stock price is $127.15. Merck's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was $3.87. Merck's Cyclically Adjusted Price-to-FCF of today is 32.86.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Merck was 33.45. The lowest was 13.57. And the median was 22.06.


Merck Cyclically Adjusted FCF per Share Historical Data

The historical data trend for Merck's Cyclically Adjusted FCF 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted FCF per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.26 3.18 3.37 3.83 3.87

Merck Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted FCF per Share 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 Premium Member Only Premium Member Only Premium Member Only 3.83 3.82 3.89 4.03 3.87

Competitive Comparison

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

For the Drug Manufacturers industry and Healthcare sector, Merck's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Merck's Cyclically Adjusted Price-to-FCF falls into.



Merck Cyclically Adjusted FCF per Share Calculation

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 FCF per Share and the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow per Share of a company over the past 10 years.

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

Cyclically Adjusted FCF per Share is the average of the inflation adjusted Free Cash Flow 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 FCF per Share of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the free cash flow per share from 2001 through 2010.

We adjusted the 2001 free cash flow per share data with the total inflation from 2001 through 2010 to the equivalent free cash flow in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart's free cash flow is $1 a share in 2001, then the 2001's equivalent free cash flow in 2010 is $1.4 a share. If Wal-Mart's free cash flow is $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 free cash flow in 2010 is $1.35. So on and so forth, you get the equivalent free cash flow per share of past 10 years. Then you add them together and divided the sum by the count to get Cyclically Adjusted FCF 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 Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare= Free Cash Flow per Share /CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=-0.292/129.4194*129.4194
=-0.292

Current CPI (Dec. 2023) = 129.4194.

Merck Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.726 99.695 0.942
201406 0.683 100.560 0.879
201409 1.384 100.428 1.784
201412 -0.875 99.070 -1.143
201503 0.726 99.621 0.943
201506 0.851 100.684 1.094
201509 1.056 100.392 1.361
201512 1.334 99.792 1.730
201603 0.678 100.470 0.873
201606 0.439 101.688 0.559
201609 0.920 101.861 1.169
201612 1.110 101.863 1.410
201703 -0.019 102.862 -0.024
201706 1.063 103.349 1.331
201709 -0.591 104.136 -0.734
201712 1.210 104.011 1.506
201803 0.260 105.290 0.320
201806 1.038 106.317 1.264
201809 0.799 106.507 0.971
201812 1.011 105.998 1.234
201903 0.285 107.251 0.344
201906 0.889 108.070 1.065
201909 1.270 108.329 1.517
201912 1.470 108.420 1.755
202003 -0.110 108.902 -0.131
202006 1.104 108.767 1.314
202009 0.287 109.815 0.338
202012 1.013 109.897 1.193
202103 0.279 111.754 0.323
202106 0.592 114.631 0.668
202109 1.429 115.734 1.598
202112 1.508 117.630 1.659
202203 1.489 121.301 1.589
202206 1.249 125.017 1.293
202209 1.761 125.227 1.820
202212 1.288 125.222 1.331
202303 0.130 127.348 0.132
202306 1.079 128.729 1.085
202309 2.677 129.860 2.668
202312 -0.292 129.419 -0.292

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.


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

If a company grows much fast than inflation, Cyclically Adjusted FCF per Share may underestimate the company's free cash flow. Cyclically Adjusted Price-to-FCF can seem to be too high even the actual Price-to-Free-Cash-Flow is low.

For the Cyclically Adjusted Price-to-FCF, the free cash flow per share of the past 10 years are inflation-adjusted and averaged. The result is used for P/FCF calculation. Since it looks at the average over the last 10 years, the Cyclically Adjusted Price-to-FCF is also called CAPFCF 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 Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Merck's Cyclically Adjusted Price-to-FCF of today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/Cyclically Adjusted FCF per Share
=127.15/3.87
=32.86

* 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.

During the past 13 years, the highest Cyclically Adjusted Price-to-FCF of Merck was 33.45. The lowest was 13.57. And the median was 22.06.


Be Aware

Cyclically Adjusted Price-to-FCF works better for cyclical companies. It gives you a better idea on the company's real free cash flow value.


Merck Cyclically Adjusted FCF per Share Related Terms

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


Merck (NYSE:MRK) Business Description

Industry
Address
126 East Lincoln Avenue, Rahway, NJ, USA, 07065
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
Johannes Jacobus Oosthuizen officer: SVP, U.S. Market 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Richard R. Deluca officer: EVP&Pres, Merck Animal Heallth 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Steven Mizell officer: EVP,Human Resources 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Joseph Romanelli officer: President, Human Health Int?l 126 EAST LINCOLN AVENUE, RAHWAY NJ 07065
Rita A Karachun officer: Sr. VP Fince-Global Controller 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Jennifer Zachary officer: EVP, General Counsel 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
Robert M Davis officer: Evp, Global Svcs & CFO 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Sanat Chattopadhyay officer: Exe V-P & Pres. MMD 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Kenneth C Frazier officer: Chairman, President & CEO 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
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
Arpa Garay officer: SVP Human Health Global Mktg. 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Caroline Litchfield officer: EVP & CFO 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Julie L. Gerberding officer: EVP Strat Comm, GI Pub Policy 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033