Merck (LIM:MRK) EBIT: $13,152 Mil (TTM As of Mar. 2026)


LIM:MRK Merck & Co Inc LIM:MRK
71 GF Score
Price $120.00
GF Value $117.83
Valuation Fairly Valued
! 7 Warning Signs
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What is Merck EBIT?

Merck LIM:MRK 71 EBIT is $13,152 Mil as of Mar. 2026. GuruFocus rates LIM:MRK with a GF Score™ of 71/100 and a GF Value™ of $117.83 (Fairly Valued). The stock has 7 warning signs investors should review.

Merck's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $-3,055 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $13,152 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Merck's annualized ROC % for the quarter that ended in Mar. 2026 was -13.13%. Merck's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was -41.58%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Merck's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 3.85%.


Merck  (LIM:MRK) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Merck's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=-12804 * ( 1 - 0% )/( (96563 + 98482)/ 2 )
=-12804/97522.5
=-13.13 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Merck's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-12220/( ( (25316 + max(3213, 0)) + (25433 + max(4812, 0)) )/ 2 )
=-12220/( ( 28529 + 30245 )/ 2 )
=-12220/29387
=-41.58 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(11775 + 6658 + 10518) - (25738 + 0 + 0)
=3213

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(12210 + 6479 + 10624) - (24501 + 0 + 0)
=4812

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Merck's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=13152/341328.824
=3.85 %

* 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.


Merck EBIT Related Terms


Merck EBIT Historical Data

* Premium members only.

The historical data trend for Merck's EBIT 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.

Merck EBIT Chart

Merck Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14,685.00 17,406.00 3,035.00 21,207.00 22,424.00

Merck Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT 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 6,216.00 5,304.00 7,072.00 3,831.00 -3,055.00

LIM:MRK vs ABBV, AMGN, GILD: EBIT Comparison

For the Drug Manufacturers - General subindustry, Merck's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Merck's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Merck's EV-to-EBIT falls into.


LIM:MRK
71GF Score
Merck & Co Inc LIM:MRK
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Merck EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

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 $13,152 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $13,152 Mil mean?
Merck (LIM:MRK) has a EBIT of $13,152 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Merck.
Is Merck's EBIT too high?
Merck's current EBIT is $13,152 Mil. Overall, Merck has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Merck's EBIT compare to ABBV and AMGN?
Merck's EBIT of $13,152 Mil can be compared against companies in the Drug Manufacturers industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Drug Manufacturers company?
A good EBIT depends on the Drug Manufacturers industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Merck. Merck's current EBIT is $13,152 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck stock overvalued right now?
Based on GuruFocus' analysis, Merck (LIM:MRK) is currently considered Fairly Valued. The stock's GF Value™ is $117.83, compared to a current price of $120.00 — trading 1.8% above its estimated fair value. The current EBIT is $13,152 Mil. Merck's overall GF Score™ is 71/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Merck (LIM:MRK), the current EBIT is $13,152 Mil 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 (LIM:MRK) Overvalued in 2026?

Based on GuruFocus' analysis, Merck stock appears to be overvalued. The current stock price of $120.00 is trading 1.8% above its estimated GF Value™ of $117.83. GuruFocus considers Merck to be Fairly Valued.

Key valuation signals for LIM:MRK:

  • EBIT: $13,152 Mil
  • GF Value™: $117.83 vs. price of $120.00 (1.8% above fair value)
  • GF Score™: 71/100 with 7 warning signs

No single metric tells the full story. See the LIM:MRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Merck Business Description

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, led by Keytruda, is a major contributor to overall sales. The company also has a substantial vaccine business aimed at preventing pediatric diseases, as well as Gardasil for human papillomavirus. Additionally, Merck sells animal health-related drugs. From a geographical perspective, 47% of the company's sales are generated from US human health (pharmaceuticals and vaccines).
71GF Score

Get the complete analysis for LIM:MRK

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$120.00
Price
$117.83
GF Value