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Merck (NYSE:MRK) EV-to-FCF

: 27.16 (As of Today)
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EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Merck's Enterprise Value is $294,052 Mil. Merck's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2023 was $10,828 Mil. Therefore, Merck's EV-to-FCF for today is 27.16.

The historical rank and industry rank for Merck's EV-to-FCF or its related term are showing as below:

MRK' s EV-to-FCF Range Over the Past 10 Years
Min: 12.75   Med: 23.2   Max: 42.37
Current: 27.18

During the past 13 years, the highest EV-to-FCF of Merck was 42.37. The lowest was 12.75. And the median was 23.20.

MRK's EV-to-FCF is ranked worse than
55.58% of 511 companies
in the Drug Manufacturers industry
Industry Median: 23.22 vs MRK: 27.18

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 to determine the fair market value of a company.

As of today (2023-09-28), Merck's stock price is $103.919. Merck's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2023 was $1.220. Therefore, Merck's PE Ratio for today is 85.18.


Merck EV-to-FCF Historical Data

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.

* Premium members only.

Merck Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
EV-to-FCF
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.72 23.45 37.98 22.65 20.34

Merck Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
EV-to-FCF Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.54 15.57 20.34 25.78 29.89

Competitive Comparison

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 Distribution

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 in comparison to its industry or sector. The grey bar indicates the EV-to-FCF's extreme value range as defined by GuruFocus.



Merck EV-to-FCF Calculation

Merck's EV-to-FCF for today is calculated as:

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=294052.036/10828
=27.16

Merck's current Enterprise Value is $294,052 Mil.
Merck's Free Cash Flow 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 $10,828 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  (NYSE: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 to determine the fair market value of a company.

Merck's PE Ratio for today is calculated as:

PE Ratio=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=103.919/1.220
=85.18

Merck's share price for today is $103.919.
Merck's Earnings per Share (Diluted) 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 $1.220.

* 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

Thank you for viewing the detailed overview of Merck's EV-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Merck (NYSE:MRK) Business Description

Merck logo
Address
126 East Lincoln Avenue, Rahway, NJ, USA, 07065
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 is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent pediatric diseases as well as human papillomavirus, or HPV. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the company's sales are generated in the United States.
Executives
Joseph Romanelli officer: President, Human Health Int?l 126 EAST LINCOLN AVENUE, RAHWAY NJ 07065
Chirfi Guindo officer: Chief Marketing Officer C/O BIOGEN INC., 225 BINNEY ST., CAMBRIDGE MA 02142
Baker Douglas M Jr director 370 WBASHA ST NORTH, ST PAUL MN 55102
Johannes Jacobus Oosthuizen officer: SVP, U.S. Market 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Arpa Garay officer: SVP Human Health Global Mktg. 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Cristal N Downing officer: Chief Comm. & Public Afrs Ofcr 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Michael A Klobuchar officer: EVP - Chief Strategy Officer 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Lisa Lecointe-cephas officer: SVP Chief Ethics & Com Officer 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Caroline Litchfield officer: EVP & CFO 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Stephen Mayo director 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Dean Y Li officer: Executive VP & President, MRL 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
David Michael Williams officer: EVP,Chief Info&Digital Officer MERCK & CO., INC., 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Risa J Lavizzo-mourey director GE HEALTHCARE TECHNOLOGIES INC., 500 W. MONROE ST., CHICAGO IL 60661
Christine E Seidman director MERCK & CO., INC., 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Kathy J Warden director 2980 FAIRVIEW PARK DRIVE, FALLS CHURCH VA 22042

Merck (NYSE:MRK) Headlines

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