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Merck KGaAXSWX:MER 84 Earnings Yield (Joel Greenblatt) % is 6.59% as of Mar. 2026, which is 39% above its 10-year median of 4.74. GuruFocus rates XSWX:MER with a GF Score™ of 84/100 and a GF Value™ of CHF134.55. The stock has 10 warning signs investors should review. Among 1,011 Drug Manufacturers companies, Merck KGaA ranks better than 62.51% on this metric.
Merck KGaA's Enterprise Value for the quarter that ended in Mar. 2026 was CHF49,617 Mil.
Merck KGaA's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was CHF3,374 Mil. Merck KGaA's Earnings Yield (Joel Greenblatt) for the quarter that ended in Mar. 2026 was 6.59%.
The historical rank and industry rank for Merck KGaA's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:
XSWX:MER'
s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 3.2 Med: 4.74 Max: 7.26
Current: 5.24
During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Merck KGaA was 7.26%. The lowest was 3.20%. And the median was 4.74%.
XSWX:MER's Earnings Yield (Joel Greenblatt) % is ranked better than 62.51% of 1011
companies
in the Drug Manufacturers industry
Industry Median: 3.31
vs XSWX:MER: 5.24
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Merck KGaA's Forward Rate of Return (Yacktman) % for the quarter that ended in Mar. 2026 was 5.04%. The Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.
Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.
Be Aware
Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.
Merck KGaA Earnings Yield (Joel Greenblatt) % Related Terms
Merck KGaA Earnings Yield (Joel Greenblatt) % Historical Data
* Premium members only.
The historical data trend for Merck KGaA's Earnings Yield (Joel Greenblatt) % 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % 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 Earnings Yield (Joel Greenblatt) % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Merck KGaA's Earnings Yield (Joel Greenblatt) % falls into.
In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.
Merck KGaAs Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2025 is calculated as
Merck KGaA's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF3,374 Mil.
What does a Earnings Yield (Joel Greenblatt) % of 6.59% mean?
Merck KGaA (XSWX:MER) has a Earnings Yield (Joel Greenblatt) % of 6.59% as of Mar. 2026. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Merck KGaA and its competitors. This is 39% above median its historical median of 4.74. Over the past decade, Merck KGaA's Earnings Yield (Joel Greenblatt) % has ranged from 3.20 to 7.26. According to the industry distribution chart, Merck KGaA ranks #379 out of 1011 companies in the Drug Manufacturers industry, placing it in the top 37.5%.
Is Merck KGaA's Earnings Yield (Joel Greenblatt) % too high?
Merck KGaA's current Earnings Yield (Joel Greenblatt) % of 6.59% is 39% above median its 10-year median of 4.74. Over the past 10 years, this metric has ranged from a low of 3.20 to a high of 7.26. The Drug Manufacturers industry median Earnings Yield (Joel Greenblatt) % is 3.31. Merck KGaA's value of 6.59% is 99.1% above this industry median. Based on the distribution chart, Merck KGaA ranks #379 out of 1011 companies in the Drug Manufacturers industry, which is above 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 Earnings Yield (Joel Greenblatt) % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #379 out of 1011 companies for Earnings Yield (Joel Greenblatt) %. This puts Merck KGaA in the upper half of its industry. The industry median Earnings Yield (Joel Greenblatt) % is 3.31. Merck KGaA's value of 6.59% is 99.1% above this benchmark. Historically, Merck KGaA's own Earnings Yield (Joel Greenblatt) % has ranged from 3.20 to 7.26 over the past decade. While the company's 10-year median is 4.74 vs. the industry median of 3.31, 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 Earnings Yield (Joel Greenblatt) % for a Drug Manufacturers company?
The median Earnings Yield (Joel Greenblatt) % among Drug Manufacturers companies is 3.31, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Earnings Yield (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, Earnings Yield (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current Earnings Yield (Joel Greenblatt) % of 6.59% is 99.1% 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 Earnings Yield (Joel Greenblatt) % mean?
A high Earnings Yield (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's earnings yield equals the ratio of earnings before interest and taxes to enterprise value. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median Earnings Yield (Joel Greenblatt) % is 3.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current Earnings Yield (Joel Greenblatt) % is 6.59%, which is 39% above median its own 10-year median of 4.74. 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 Earnings Yield (Joel Greenblatt) % of 6.59%. The stock's GF Value™ is CHF134.55, compared to a current price of CHF127.50 — trading 5.2% below its estimated fair value. The current Earnings Yield (Joel Greenblatt) % is 6.59%, which is 39% above median its 10-year median of 4.74 and 99.1% above the Drug Manufacturers industry median of 3.31. 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 Earnings Yield (Joel Greenblatt) % calculated?
Earnings Yield (Joel Greenblatt) % is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current Earnings Yield (Joel Greenblatt) % is 6.59% 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 CHF127.50 is trading 5.2% below its estimated GF Value™ of CHF134.55.
Key valuation signals for XSWX:MER:
Earnings Yield (Joel Greenblatt) %: 6.59% (39% above median its 10-year median of 4.74)
GF Value™: CHF134.55 vs. price of CHF127.50 (5.2% below fair value)
Industry Position: 99.1% above the Drug Manufacturers median (#379 of 1011)
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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Earnings Yield (Joel Greenblatt) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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