MerckMEX:MRK -1.93%72 EV-to-FCF is 24.16 as of Jul. 07, 2026, which is 0% below its 10-year median of 24.28. GuruFocus rates MEX:MRK with a GF Score™ of 72/100 and a GF Value™ of MXN2,087.96 (Fairly Valued). The stock has 8 warning signs investors should review. Among 564 Drug Manufacturers companies, Merck ranks worse than 54.61% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Merck's Enterprise Value is MXN6,247,170 Mil.
Merck's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was MXN258,626 Mil. Therefore, Merck's EV-to-FCF for today is 24.16.
The historical rank and industry rank for Merck's EV-to-FCF or its related term are showing as below:
MEX:MRK'
s EV-to-FCF Range Over the Past 10 Years
Min: 12.79 Med: 24.28 Max: 42.37
Current: 25.26
During the past 13 years, the highest EV-to-FCF of Merck was 42.37. The lowest was 12.79. And the median was 24.28.
MEX:MRK's EV-to-FCF is ranked worse than 54.61% of 564
companies
in the Drug Manufacturers industry
Industry Median: 20.75
vs MEX:MRK: 25.26
EV-to-FCF 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.
As of today (2026-07-07), Merck's stock price is MXN2196.80.
Merck's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was MXN67.287. Therefore, Merck's PE Ratio (TTM) for today is 32.65.
Merck (MEX:MRK) EV-to-FCF Explanation
EV-to-FCF 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's share price for today is MXN2196.80.
Merck'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 MXN67.287.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Merck EV-to-FCF Related Terms
Merck EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Merck's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Merck's EV-to-FCF falls into.
Merck's current Enterprise Value is MXN6,247,170 Mil.
Merck's Free Cash Flow 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 MXN258,626 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 (MEX:MRK) has a EV-to-FCF of 24.16 as of Jul. 07, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Merck and its competitors. This is near median its historical median of 24.28. Over the past decade, Merck's EV-to-FCF has ranged from 12.79 to 42.37. According to the industry distribution chart, Merck ranks #308 out of 564 companies in the Drug Manufacturers industry, placing it in the top 54.6%.
Is Merck's EV-to-FCF too high?
Merck's current EV-to-FCF of 24.16 is near median its 10-year median of 24.28. Over the past 10 years, this metric has ranged from a low of 12.79 to a high of 42.37. The Drug Manufacturers industry median EV-to-FCF is 20.75. Merck's value of 24.16 is 16.4% above this industry median. Based on the distribution chart, Merck ranks #308 out of 564 companies in the Drug Manufacturers industry, which is below the industry midpoint. 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-FCF compare to AMGN and ABBV?
According to the Drug Manufacturers industry distribution chart, Merck ranks #308 out of 564 companies for EV-to-FCF. This places Merck in the lower half of its industry. The industry median EV-to-FCF is 20.75. Merck's value of 24.16 is 16.4% above this benchmark. Historically, Merck's own EV-to-FCF has ranged from 12.79 to 42.37 over the past decade. While the company's 10-year median is 24.28 vs. the industry median of 20.75, 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-FCF for a Drug Manufacturers company?
The median EV-to-FCF among Drug Manufacturers companies is 20.75, based on 564 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck's current EV-to-FCF of 24.16 is 16.4% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Merck and its competitors. For the Drug Manufacturers industry, the median EV-to-FCF is 20.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck's current EV-to-FCF is 24.16, which is near median its own 10-year median of 24.28. 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 (MEX:MRK) is currently considered Fairly Valued. The stock's GF Value™ is MXN2,087.96, compared to a current price of MXN2,196.80 — trading 5.2% above its estimated fair value. The current EV-to-FCF is 24.16, which is near median its 10-year median of 24.28 and 16.4% above the Drug Manufacturers industry median of 20.75. Merck's overall GF Score™ is 72/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Merck (MEX:MRK), the current EV-to-FCF is 24.16 as of Jul. 07, 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 (MEX:MRK) Overvalued in 2026?
Based on GuruFocus' analysis, Merck stock appears to be overvalued.
The current stock price of MXN2,196.80 is trading 5.2% above its estimated GF Value™ of MXN2,087.96.
GuruFocus considers Merck to be Fairly Valued.
Key valuation signals for MEX:MRK:
EV-to-FCF: 24.16 (near median its 10-year median of 24.28)
GF Value™: MXN2,087.96 vs. price of MXN2,196.80 (5.2% above fair value)
Industry Position: 16.4% above the Drug Manufacturers median (#308 of 564)
No single metric tells the full story. See the MEX: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
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