Merck KGaA (XSWX:MER) EBIT: CHF3,374 Mil (TTM As of Mar. 2026)


XSWX:MER Merck KGaA XSWX:MER
83 GF Score
Price CHF130.30
GF Value CHF125.76
! 9 Warning Signs
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What is Merck KGaA EBIT?

Merck KGaA XSWX:MER +4.03% 83 EBIT is CHF3,374 Mil as of Mar. 2026. GuruFocus rates XSWX:MER with a GF Score™ of 83/100 and a GF Value™ of CHF125.76. The stock has 9 warning signs investors should review.

Merck KGaA's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was CHF886 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was CHF3,374 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Merck KGaA's annualized ROC % for the quarter that ended in Mar. 2026 was 6.36%. Merck KGaA's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 31.35%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Merck KGaA's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 5.11%.


Merck KGaA  (XSWX:MER) EBIT Explanation

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

Merck KGaA'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 )
=3433.176 * ( 1 - 23.01% )/( (41659.954 + 41486.615)/ 2 )
=2643.2022024/41573.2845
=6.36 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=48081.811 - 3692.428 - ( 2729.429 - max(0, 8437.435 - 12345.418+2729.429))
=41659.954

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=48302.903 - 3381.294 - ( 3434.994 - max(0, 8509.211 - 12889.876+3434.994))
=41486.615

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 KGaA'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 )
=3542.396/( ( (9275.393 + max(2221.802, 0)) + (9141.782 + max(1960.514, 0)) )/ 2 )
=3542.396/( ( 11497.195 + 11102.296 )/ 2 )
=3542.396/11299.7455
=31.35 %

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)
=(3683.096 + 4256.976 + 1579.803) - (3692.428 + 0 + 3605.645)
=2221.802

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(3930.129 + 4352.449 + 1062.173) - (3381.294 + 0 + 4002.943)
=1960.514

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

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=3373.675/66015.466
=5.11 %

* 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 KGaA EBIT Related Terms


Merck KGaA EBIT Historical Data

* Premium members only.

The historical data trend for Merck KGaA'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 KGaA EBIT Chart

Merck KGaA 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 4,366.69 4,462.60 3,588.40 3,573.87 3,447.01

Merck KGaA 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 987.72 851.66 1,166.12 470.30 885.60

XSWX:MER vs ZTS, UTHR, VTRS: EBIT Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA'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 KGaA EV-to-EBIT vs Drug Manufacturers Industry

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

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


XSWX:MER
83GF Score
Merck KGaA XSWX:MER
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Merck KGaA 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 CHF3,374 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 CHF3,374 Mil mean?
Merck KGaA (XSWX:MER) has a EBIT of CHF3,374 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Merck KGaA.
Is Merck KGaA's EBIT too high?
Merck KGaA's current EBIT is CHF3,374 Mil. Overall, Merck KGaA has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's EBIT compare to ZTS and UTHR?
Merck KGaA's EBIT of CHF3,374 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 KGaA. Merck KGaA's current EBIT is CHF3,374 Mil. 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 EBIT of CHF3,374 Mil. The stock's GF Value™ is CHF125.76, compared to a current price of CHF130.30 — trading 3.6% above its estimated fair value. The current EBIT is CHF3,374 Mil. Merck KGaA's overall GF Score™ is 83/100 with 9 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 KGaA (XSWX:MER), the current EBIT is CHF3,374 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 KGaA (XSWX:MER) Overvalued in 2026?

Based on GuruFocus' analysis, Merck KGaA stock appears to be overvalued. The current stock price of CHF130.30 is trading 3.6% above its estimated GF Value™ of CHF125.76.

Key valuation signals for XSWX:MER:

  • EBIT: CHF3,374 Mil
  • GF Value™: CHF125.76 vs. price of CHF130.30 (3.6% above fair value)
  • GF Score™: 83/100 with 9 warning signs

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 Business Description

Address Frankfurter Strasse 250, Darmstadt, HE, DEU, 64293
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.
83GF Score

Get the complete analysis for XSWX:MER

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

CHF130.30
Price
CHF125.76
GF Value