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Merck (NYSE:MRK) PB Ratio

: 7.96 (As of Today)
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The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. As of today (2024-02-23), Merck's share price is $129.51. Merck's Book Value per Share for the quarter that ended in Sep. 2023 was $16.27. Hence, Merck's PB Ratio of today is 7.96.

Warning Sign:

Merck & Co Inc stock PB Ratio (=7.95) is close to 10-year high of 8.53

The historical rank and industry rank for Merck's PB Ratio or its related term are showing as below:

MRK' s PB Ratio Range Over the Past 10 Years
Min: 2.32   Med: 5.06   Max: 8.53
Current: 7.96

During the past 13 years, Merck's highest PB Ratio was 8.53. The lowest was 2.32. And the median was 5.06.

MRK's PB Ratio is ranked worse than
92.48% of 971 companies
in the Drug Manufacturers industry
Industry Median: 1.9 vs MRK: 7.96

During the past 12 months, Merck's average Book Value Per Share Growth Rate was -7.30% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 21.10% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 8.60% per year. During the past 10 years, the average Book Value Per Share Growth Rate was -2.80% per year.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Merck was 34.30% per year. The lowest was -13.80% per year. And the median was 4.85% per year.

Back to Basics: PB Ratio


Merck PB Ratio Historical Data

The historical data trend for Merck's PB Ratio 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 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PB Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.50 7.80 5.07 6.12 -

Merck Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
PB Ratio 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 6.12 5.76 7.57 6.33 -

Competitive Comparison

For the Drug Manufacturers - General subindustry, Merck's PB Ratio, along with its competitors' market caps and PB Ratio 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 PB Ratio Distribution

For the Drug Manufacturers industry and Healthcare sector, Merck's PB Ratio distribution charts can be found below:

* The bar in red indicates where Merck's PB Ratio falls into.



Merck PB Ratio Calculation

The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.

Merck's PB Ratio for today is calculated as follows:

PB Ratio=Share Price/Book Value per Share (Q: Sep. 2023)
=129.51/16.269
=7.96

* 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.

It can also be calculated from the numbers for the whole company:

A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.


Merck  (NYSE:MRK) PB Ratio Explanation

Unlike valuation ratios relative to the earning power such as PE Ratio, PE Ratio without NRI, PS Ratio, Price-to-Operating-Cash-Flow , or Price-to-Free-Cash-Flow, the PB Ratio measures the valuation of the stock relative to the underlying asset of the company.

The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.


Be Aware

Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.


Merck PB Ratio Related Terms

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


Merck (NYSE: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.
Executives
Johannes Jacobus Oosthuizen officer: SVP, U.S. Market 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Richard R. Deluca officer: EVP&Pres, Merck Animal Heallth 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Steven Mizell officer: EVP,Human Resources 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Joseph Romanelli officer: President, Human Health Int?l 126 EAST LINCOLN AVENUE, RAHWAY NJ 07065
Rita A Karachun officer: Sr. VP Fince-Global Controller 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Jennifer Zachary officer: EVP, General Counsel 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
Robert M Davis officer: Evp, Global Svcs & CFO 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Sanat Chattopadhyay officer: Exe V-P & Pres. MMD 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
Kenneth C Frazier officer: Chairman, President & CEO 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033
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
Arpa Garay officer: SVP Human Health Global Mktg. 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Caroline Litchfield officer: EVP & CFO 2000 GALLOPING HILL RD, KENILWORTH NJ 07033
Julie L. Gerberding officer: EVP Strat Comm, GI Pub Policy 2000 GALLOPING HILL ROAD, KENILWORTH NJ 07033