Merck (NYSE:MRK) Enterprise Value

When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.

If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.

The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.

For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.

Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.

1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.

Merck's EV-to-EBIT for today is

Merck's current Enterprise Value is $301,363 Mil.
Merck's EBIT for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $6,409 Mil.

2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.

Merck's EV-to-EBITDA for today is:

Merck's current Enterprise Value is $301,363 Mil.
Merck's EBITDA for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $10,154 Mil.

3. EV-to-Revenue is calculated as Enterprise Value divided by its Revenue.

Merck's EV-to-Revenue for today is:

Merck's current Enterprise Value is $301,363 Mil.
Merck's Revenue for the trailing twelve months (TTM) ended in Jun. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $58,311 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.

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