Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
MerckMRK +0.03%72 EV-to-EBIT is 49.60 as of Aug. 06, 2026, which is 109% above its 10-year median of 23.71. GuruFocus rates MRK with a GF Score™ of 72/100 and a GF Value™ of $119.09 (Fairly Valued). The stock has 9 warning signs investors should review. Among 688 Drug Manufacturers companies, Merck ranks worse than 85.17% on this metric.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Merck's Enterprise Value is $360,519 Mil.
Merck's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 was $7,269 Mil. Therefore, Merck's EV-to-EBIT for today is 49.60.
The historical rank and industry rank for Merck's EV-to-EBIT or its related term are showing as below:
MRK'
s EV-to-EBIT Range Over the Past 10 Years
Min: 10.16 Med: 23.71 Max: 119.7
Current: 49.6
During the past 13 years, the highest EV-to-EBIT of Merck was 119.70. The lowest was 10.16. And the median was 23.71.
MRK's EV-to-EBIT is ranked worse than 85.17% of 688
companies
in the Drug Manufacturers industry
Industry Median: 15.55
vs MRK: 49.60
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Merck's Enterprise Value for the quarter that ended in Mar. 2026 was $340,547 Mil.
Merck'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 $7,269 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.
Merck EV-to-EBIT Related Terms
Merck EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Merck's EV-to-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.
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.
Merck's current Enterprise Value is $360,519 Mil.
Merck'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 $7,269 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.
Merck (MRK) has a EV-to-EBIT of 49.60 as of Aug. 06, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Merck and its competitors. This is 109% above median its historical median of 23.71. Over the past decade, Merck's EV-to-EBIT has ranged from 10.16 to 119.70. According to the industry distribution chart, Merck ranks #586 out of 688 companies in the Drug Manufacturers industry, placing it in the top 85.2%.
Is Merck's EV-to-EBIT too high?
Merck's current EV-to-EBIT of 49.60 is 109% above median its 10-year median of 23.71. Over the past 10 years, this metric has ranged from a low of 10.16 to a high of 119.70. The Drug Manufacturers industry median EV-to-EBIT is 15.55. Merck's value of 49.60 is 219% above this industry median. Based on the distribution chart, Merck ranks #586 out of 688 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Merck has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Merck's EV-to-EBIT compare to AMGN and ABBV?
According to the Drug Manufacturers industry distribution chart, Merck ranks #586 out of 688 companies for EV-to-EBIT. This places Merck in the lower half of its industry. The industry median EV-to-EBIT is 15.55. Merck's value of 49.60 is 219% above this benchmark. Historically, Merck's own EV-to-EBIT has ranged from 10.16 to 119.70 over the past decade. While the company's 10-year median is 23.71 vs. the industry median of 15.55, Merck 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 EV-to-EBIT for a Drug Manufacturers company?
The median EV-to-EBIT among Drug Manufacturers companies is 15.55, based on 688 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck's current EV-to-EBIT of 49.60 is 219% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Merck and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 15.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck's current EV-to-EBIT is 49.60, which is 109% above median its own 10-year median of 23.71. 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 (MRK) is currently considered Fairly Valued. The stock's GF Value™ is $119.09, compared to a current price of $128.37 — trading 7.8% above its estimated fair value. The current EV-to-EBIT is 49.60, which is 109% above median its 10-year median of 23.71 and 219% above the Drug Manufacturers industry median of 15.55. Merck's overall GF Score™ is 72/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Merck (MRK), the current EV-to-EBIT is 49.60 as of Aug. 06, 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 (MRK) Overvalued in 2026?
Based on GuruFocus' analysis, Merck stock appears to be overvalued.
The current stock price of $128.37 is trading 7.8% above its estimated GF Value™ of $119.09.
GuruFocus considers Merck to be Fairly Valued.
Key valuation signals for MRK:
EV-to-EBIT: 49.60 (109% above median its 10-year median of 23.71)
GF Value™: $119.09 vs. price of $128.37 (7.8% above fair value)
Industry Position: 219% above the Drug Manufacturers median (#586 of 688)
No single metric tells the full story. See the MRK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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).
72GF Score
Get the complete analysis for MRK
EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MRK has been successfully added to your 
