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Merck KGaAXSWX:MER 84 EV-to-OCF is 16.62 as of Aug. 13, 2026, which is 15% below its 10-year median of 19.48. GuruFocus rates XSWX:MER with a GF Score™ of 84/100 and a GF Value™ of CHF135.49. The stock has 10 warning signs investors should review. Among 1,006 Drug Manufacturers companies, Merck KGaA ranks worse than 63.12% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Merck KGaA's Enterprise Value is CHF64,800 Mil.
Merck KGaA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was CHF3,899 Mil. Therefore, Merck KGaA's EV-to-OCF for today is 16.62.
The historical rank and industry rank for Merck KGaA's EV-to-OCF or its related term are showing as below:
XSWX:MER'
s EV-to-OCF Range Over the Past 10 Years
Min: 13.34 Med: 19.48 Max: 25.65
Current: 16.5
During the past 13 years, the highest EV-to-OCF of Merck KGaA was 25.65. The lowest was 13.34. And the median was 19.48.
XSWX:MER's EV-to-OCF is ranked worse than 63.12% of 1006
companies
in the Drug Manufacturers industry
Industry Median: 11.145
vs XSWX:MER: 16.50
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Merck KGaA's share price for today is CHF133.05.
Merck KGaA's Earnings per Share (Diluted) 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 CHF5.415.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Merck KGaA EV-to-OCF Related Terms
Merck KGaA EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Merck KGaA's EV-to-OCF 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 EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Merck KGaA's EV-to-OCF falls into.
Merck KGaA's current Enterprise Value is CHF64,800 Mil.
Merck KGaA's Cash Flow from Operations 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 CHF3,899 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-OCF of 16.62 as of Aug. 13, 2026. This is 15% below median its historical median of 19.48. Over the past decade, Merck KGaA's EV-to-OCF has ranged from 13.34 to 25.65. According to the industry distribution chart, Merck KGaA ranks #635 out of 1006 companies in the Drug Manufacturers industry, placing it in the top 63.1%.
Is Merck KGaA's EV-to-OCF too high?
Merck KGaA's current EV-to-OCF of 16.62 is 15% below median its 10-year median of 19.48. Over the past 10 years, this metric has ranged from a low of 13.34 to a high of 25.65. The Drug Manufacturers industry median EV-to-OCF is 11.15. Merck KGaA's value of 16.62 is 49.1% above this industry median. Based on the distribution chart, Merck KGaA ranks #635 out of 1006 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-OCF compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #635 out of 1006 companies for EV-to-OCF. This places Merck KGaA in the lower half of its industry. The industry median EV-to-OCF is 11.15. Merck KGaA's value of 16.62 is 49.1% above this benchmark. Historically, Merck KGaA's own EV-to-OCF has ranged from 13.34 to 25.65 over the past decade. While the company's 10-year median is 19.48 vs. the industry median of 11.15, 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-OCF for a Drug Manufacturers company?
The median EV-to-OCF among Drug Manufacturers companies is 11.15, based on 1,006 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current EV-to-OCF of 16.62 is 49.1% 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 EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Drug Manufacturers industry, the median EV-to-OCF is 11.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current EV-to-OCF is 16.62, which is 15% below median its own 10-year median of 19.48. 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-OCF of 16.62. The stock's GF Value™ is CHF135.49, compared to a current price of CHF133.05 — trading 1.8% below its estimated fair value. The current EV-to-OCF is 16.62, which is 15% below median its 10-year median of 19.48 and 49.1% above the Drug Manufacturers industry median of 11.15. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current EV-to-OCF is 16.62 as of Aug. 13, 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 CHF133.05 is trading 1.8% below its estimated GF Value™ of CHF135.49.
Key valuation signals for XSWX:MER:
EV-to-OCF: 16.62 (15% below median its 10-year median of 19.48)
GF Value™: CHF135.49 vs. price of CHF133.05 (1.8% below fair value)
Industry Position: 49.1% above the Drug Manufacturers median (#635 of 1006)
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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