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Merck KGaAXSWX:MER 84 EV-to-EBIT is 18.47 as of Jul. 18, 2026, which is 13% below its 10-year median of 21.13. 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 689 Drug Manufacturers companies, Merck KGaA ranks worse than 56.46% on this metric.
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 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 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.
Merck KGaA EV-to-EBIT Related Terms
Merck KGaA EV-to-EBIT Historical Data
* Premium members only.
The historical data trend for Merck KGaA'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.
XSWX:MER vs ZTS, UTHR, VTRS: EV-to-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.
Merck KGaA's current Enterprise Value is CHF62,300 Mil.
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.
* 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 (XSWX:MER) has a EV-to-EBIT of 18.47 as of Jul. 18, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Merck KGaA and its competitors. This is 13% below median its historical median of 21.13. Over the past decade, Merck KGaA's EV-to-EBIT has ranged from 13.77 to 31.26. According to the industry distribution chart, Merck KGaA ranks #389 out of 689 companies in the Drug Manufacturers industry, placing it in the top 56.5%.
Is Merck KGaA's EV-to-EBIT too high?
Merck KGaA's current EV-to-EBIT of 18.47 is 13% below median its 10-year median of 21.13. Over the past 10 years, this metric has ranged from a low of 13.77 to a high of 31.26. The Drug Manufacturers industry median EV-to-EBIT is 15.73. Merck KGaA's value of 18.47 is 17.4% above this industry median. Based on the distribution chart, Merck KGaA ranks #389 out of 689 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 EV-to-EBIT compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #389 out of 689 companies for EV-to-EBIT. This places Merck KGaA in the lower half of its industry. The industry median EV-to-EBIT is 15.73. Merck KGaA's value of 18.47 is 17.4% above this benchmark. Historically, Merck KGaA's own EV-to-EBIT has ranged from 13.77 to 31.26 over the past decade. While the company's 10-year median is 21.13 vs. the industry median of 15.73, 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 EV-to-EBIT for a Drug Manufacturers company?
The median EV-to-EBIT among Drug Manufacturers companies is 15.73, based on 689 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 KGaA's current EV-to-EBIT of 18.47 is 17.4% 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 KGaA and its competitors. For the Drug Manufacturers industry, the median EV-to-EBIT is 15.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current EV-to-EBIT is 18.47, which is 13% below median its own 10-year median of 21.13. 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 EV-to-EBIT of 18.47. The stock's GF Value™ is CHF134.55, compared to a current price of CHF130.30 — trading 3.2% below its estimated fair value. The current EV-to-EBIT is 18.47, which is 13% below median its 10-year median of 21.13 and 17.4% above the Drug Manufacturers industry median of 15.73. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current EV-to-EBIT is 18.47 as of Jul. 18, 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 CHF130.30 is trading 3.2% below its estimated GF Value™ of CHF134.55.
Key valuation signals for XSWX:MER:
EV-to-EBIT: 18.47 (13% below median its 10-year median of 21.13)
GF Value™: CHF134.55 vs. price of CHF130.30 (3.2% below fair value)
Industry Position: 17.4% above the Drug Manufacturers median (#389 of 689)
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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