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Merck (XPAR:MRK) EV-to-FCF : 39.32 (As of Apr. 27, 2024)


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What is Merck EV-to-FCF?

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Merck's Enterprise Value is €335,858 Mil. Merck's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 was €8,543 Mil. Therefore, Merck's EV-to-FCF for today is 39.32.

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

XPAR:MRK' s EV-to-FCF Range Over the Past 10 Years
Min: 12.85   Med: 23.82   Max: 42.37
Current: 39.41

During the past 13 years, the highest EV-to-FCF of Merck was 42.37. The lowest was 12.85. And the median was 23.82.

XPAR:MRK's EV-to-FCF is ranked worse than
67.91% of 511 companies
in the Drug Manufacturers industry
Industry Median: 22.05 vs XPAR:MRK: 39.41

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 (2024-04-27), Merck's stock price is €101.40. Merck's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 was €0.854. Therefore, Merck's PE Ratio for today is 118.74.


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 EV-to-FCF Chart

Merck Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.45 37.98 22.65 20.34 33.25

Merck Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
EV-to-FCF Get a 7-Day Free Trial 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 25.78 29.89 21.81 33.25 -

Competitive Comparison of Merck's EV-to-FCF

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's EV-to-FCF Distribution in the 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 EV-to-FCF Calculation

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

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=335858.270/8542.509
=39.32

Merck's current Enterprise Value is €335,858 Mil.
Merck's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was €8,543 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  (XPAR: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)
=101.40/0.854
=118.74

Merck's share price for today is €101.40.
Merck's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was €0.854.

* 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 (XPAR:MRK) Business Description

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.

Merck (XPAR:MRK) Headlines

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