Merck KGaAXSWX:MER +4.03%83 PB Ratio is 2.09 as of Jun. 29, 2026, which is 21% below its 10-year median of 2.65. GuruFocus rates XSWX:MER with a GF Score™ of 83/100 and a GF Value™ of CHF125.76. The stock has 9 warning signs investors should review. Among 922 Drug Manufacturers companies, Merck KGaA ranks worse than 55.53% on this metric.
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 (2026-06-29), Merck KGaA's share price is CHF130.30. Merck KGaA's Book Value per Share for the quarter that ended in Mar. 2026 was CHF62.26. Hence, Merck KGaA's PB Ratio of today is 2.09.
Warning Sign:
Merck KGaA stock PB Ratio (=2.13) is close to 1-year high of 2.13.
The historical rank and industry rank for Merck KGaA's PB Ratio or its related term are showing as below:
XSWX:MER'
s PB Ratio Range Over the Past 10 Years
Min: 1.58 Med: 2.65 Max: 4.75
Current: 2.13
During the past 13 years, Merck KGaA's highest PB Ratio was 4.75. The lowest was 1.58. And the median was 2.65.
XSWX:MER's PB Ratio is ranked worse than 55.53% of 922
companies
in the Drug Manufacturers industry
Industry Median: 1.845
vs XSWX:MER: 2.13
During the past 12 months, Merck KGaA's average Book Value Per Share Growth Rate was -0.30% per year.
During the past 3 years, the average Book Value Per Share Growth Rate was 3.30% per year.
During the past 5 years, the average Book Value Per Share Growth Rate was 11.00% per year.
During the past 10 years, the average Book Value Per Share Growth Rate was 9.50% per year.
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Merck KGaA was 40.80% per year. The lowest was 2.20% per year. And the median was 8.30% per year.
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 KGaA PB Ratio Related Terms
Merck KGaA PB Ratio Historical Data
* Premium members only.
The historical data trend for Merck KGaA'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Merck KGaA'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 KGaA PB Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's PB Ratio distribution charts can be found below:
* The bar in red indicates where Merck KGaA's PB Ratio falls into.
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 KGaA's PB Ratio for today is calculated as follows:
* 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 KGaA (XSWX:MER) has a PB Ratio of 2.09 as of Jun. 29, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Merck KGaA and its competitors. This is 21% below median its historical median of 2.65. Over the past decade, Merck KGaA's PB Ratio has ranged from 1.58 to 4.75. According to the industry distribution chart, Merck KGaA ranks #512 out of 922 companies in the Drug Manufacturers industry, placing it in the top 55.5%.
Is Merck KGaA's PB Ratio too high?
Merck KGaA's current PB Ratio of 2.09 is 21% below median its 10-year median of 2.65. Over the past 10 years, this metric has ranged from a low of 1.58 to a high of 4.75. The Drug Manufacturers industry median PB Ratio is 1.85. Merck KGaA's value of 2.09 is 13.3% above this industry median. Based on the distribution chart, Merck KGaA ranks #512 out of 922 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Merck KGaA has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Merck KGaA's PB Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #512 out of 922 companies for PB Ratio. This places Merck KGaA in the lower half of its industry. The industry median PB Ratio is 1.85. Merck KGaA's value of 2.09 is 13.3% above this benchmark. Historically, Merck KGaA's own PB Ratio has ranged from 1.58 to 4.75 over the past decade. While the company's 10-year median is 2.65 vs. the industry median of 1.85, Merck KGaA 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 PB Ratio for a Drug Manufacturers company?
The median PB Ratio among Drug Manufacturers companies is 1.85, based on 922 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current PB Ratio of 2.09 is 13.3% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median PB Ratio is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current PB Ratio is 2.09, which is 21% below median its own 10-year median of 2.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merck KGaA stock overvalued right now?
Merck KGaA (XSWX:MER) has a current PB Ratio of 2.09. The stock's GF Value™ is CHF125.76, compared to a current price of CHF130.30 — trading 3.6% above its estimated fair value. The current PB Ratio is 2.09, which is 21% below median its 10-year median of 2.65 and 13.3% above the Drug Manufacturers industry median of 1.85. Merck KGaA's overall GF Score™ is 83/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current PB Ratio is 2.09 as of Jun. 29, 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 KGaA (XSWX:MER) Overvalued in 2026?
Based on GuruFocus' analysis, Merck KGaA stock appears to be overvalued.
The current stock price of CHF130.30 is trading 3.6% above its estimated GF Value™ of CHF125.76.
Key valuation signals for XSWX:MER:
PB Ratio: 2.09 (21% below median its 10-year median of 2.65)
GF Value™: CHF125.76 vs. price of CHF130.30 (3.6% above fair value)
Industry Position: 13.3% above the Drug Manufacturers median (#512 of 922)
No single metric tells the full story. See the XSWX:MER stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merck KGaA operates in three main segments: Life Science, Electronics, and Healthcare. The Life Science segment provides laboratory consumables and instruments to researchers in academia and applied fields, including the biopharmaceutical industry. The Electronics segment offers specialty materials to manufacture a variety of products, such as semiconductors and flat-screen televisions. In the healthcare segment, Merck develops, manufactures, and sells branded pharmaceuticals with significant therapeutic concentrations in oncology, multiple sclerosis, and fertility. In 1995, the E. Merck KG family publicly sold part of the company, resulting in the current 30% public ownership of the firm.
83GF Score
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