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Merck KGaAXSWX:MER 84 Debt-to-EBITDA is 2.05 as of Mar. 2026, which is 7% below its 10-year median of 2.21. GuruFocus rates XSWX:MER with a GF Score™ of 84/100 and a GF Value™ of CHF132.97. The stock has 10 warning signs investors should review. Among 690 Drug Manufacturers companies, Merck KGaA ranks worse than 56.67% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Merck KGaA's Debt-to-EBITDA or its related term are showing as below:
XSWX:MER'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.59 Med: 2.21 Max: 3.16
Current: 2.02
During the past 13 years, the highest Debt-to-EBITDA Ratio of Merck KGaA was 3.16. The lowest was 1.59. And the median was 2.21.
XSWX:MER's Debt-to-EBITDA is ranked worse than 56.67% of 690
companies
in the Drug Manufacturers industry
Industry Median: 1.67
vs XSWX:MER: 2.02
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Merck KGaA Debt-to-EBITDA Related Terms
Merck KGaA Debt-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Merck KGaA's Debt-to-EBITDA 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.
XSWX:MER vs ZTS, UTHR, VTRS: Debt-to-EBITDA Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Merck KGaA's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Merck KGaA (XSWX:MER) has a Debt-to-EBITDA of 2.05 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Merck KGaA. This is near median its historical median of 2.21. Over the past decade, Merck KGaA's Debt-to-EBITDA has ranged from 1.59 to 3.16. According to the industry distribution chart, Merck KGaA ranks #391 out of 690 companies in the Drug Manufacturers industry, placing it in the top 56.7%.
Is Merck KGaA's Debt-to-EBITDA too high?
Merck KGaA's current Debt-to-EBITDA of 2.05 is near median its 10-year median of 2.21. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 3.16. The Drug Manufacturers industry median Debt-to-EBITDA is 1.67. Merck KGaA's value of 2.05 is 22.8% above this industry median. Based on the distribution chart, Merck KGaA ranks #391 out of 690 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Merck KGaA has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's Debt-to-EBITDA compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #391 out of 690 companies for Debt-to-EBITDA. This places Merck KGaA in the lower half of its industry. The industry median Debt-to-EBITDA is 1.67. Merck KGaA's value of 2.05 is 22.8% above this benchmark. Historically, Merck KGaA's own Debt-to-EBITDA has ranged from 1.59 to 3.16 over the past decade. While the company's 10-year median is 2.21 vs. the industry median of 1.67, Merck KGaA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.67, based on 690 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current Debt-to-EBITDA of 2.05 is 22.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Merck KGaA. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current Debt-to-EBITDA is 2.05, which is near median its own 10-year median of 2.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck KGaA stock overvalued right now?
Merck KGaA (XSWX:MER) has a current Debt-to-EBITDA of 2.05. The stock's GF Value™ is CHF132.97, compared to a current price of CHF132.00 — trading 0.7% below its estimated fair value. The current Debt-to-EBITDA is 2.05, which is near median its 10-year median of 2.21 and 22.8% above the Drug Manufacturers industry median of 1.67. Merck KGaA's overall GF Score™ is 84/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current Debt-to-EBITDA is 2.05 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Merck KGaA (XSWX:MER) Overvalued in 2026?
Based on GuruFocus' analysis, Merck KGaA stock appears to be undervalued.
The current stock price of CHF132.00 is trading 0.7% below its estimated GF Value™ of CHF132.97.
Key valuation signals for XSWX:MER:
Debt-to-EBITDA: 2.05 (near median its 10-year median of 2.21)
GF Value™: CHF132.97 vs. price of CHF132.00 (0.7% below fair value)
Industry Position: 22.8% above the Drug Manufacturers median (#391 of 690)
No single metric tells the full story. See the XSWX:MER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merck KGaA operates in three main segments: Life Science, Electronics, and Healthcare. The Life Science segment provides laboratory consumables and instruments to researchers in academia and applied fields, including the biopharmaceutical industry. The Electronics segment offers specialty materials to manufacture a variety of products, such as semiconductors and flat-screen televisions. In the healthcare segment, Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
84GF Score
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