Merck KGaAXSWX:MER +4.03%83 PS Ratio is 2.91 as of Jun. 29, 2026, which is 1% below its 10-year median of 2.95. 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 949 Drug Manufacturers companies, Merck KGaA ranks worse than 60.17% on this metric.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. As of today, Merck KGaA's share price is CHF130.30.
Merck KGaA's Revenue per Share for the trailing twelve months (TTM) ended in Mar. 2026 was CHF44.82. Hence, Merck KGaA's PS Ratio for today is 2.91.
Warning Sign:
Merck KGaA stock PS Ratio (=3.02) is close to 1-year high of 3.02.
The historical rank and industry rank for Merck KGaA's PS Ratio or its related term are showing as below:
XSWX:MER'
s PS Ratio Range Over the Past 10 Years
Min: 2.14 Med: 2.95 Max: 5.14
Current: 3.02
During the past 13 years, Merck KGaA's highest PS Ratio was 5.14. The lowest was 2.14. And the median was 2.95.
XSWX:MER's PS Ratio is ranked worse than 60.17% of 949
companies
in the Drug Manufacturers industry
Industry Median: 2.25
vs XSWX:MER: 3.02
Merck KGaA revenue per share has been in decline over the past 3 years.
During the past 12 months, the average Revenue per Share Growth Rate of Merck KGaA was -1.60% per year.
During the past 3 years, the average Revenue per Share Growth Rate was -1.70% per year.
During the past 5 years, the average Revenue per Share Growth Rate was 3.20% per year.
During the past 10 years, the average Revenue per Share Growth Rate was 5.60% per year.
During the past 13 years, Merck KGaA's highest 3-Year average Revenue per Share Growth Rate was 15.70% per year. The lowest was -11.60% per year. And the median was 6.20% per year.
Back to Basics: PS Ratio
Merck KGaA (XSWX:MER) PS Ratio Explanation
The PS Ratio is an excellent valuation indicator if you want to compare a stock with its historical valuation or with the stocks in the same industry. The PS Ratio works especially well when you want to compare the stock's current valuation with its historical valuation. The PS Ratio is a great valuation tool for evaluating cyclical businesses where the PE Ratio works poorly. It works the best when comparing the current valuation with the historical valuation because over time, a company's profit margin tends to revert to the mean.
When the PS Ratio is applied to the whole stock market, it can be used to evaluate the current market valuation and projected returns. In this case, the price is the total market cap of all stocks that are traded, and sales are the GDP of the country. This is how Warren Buffett estimates the broad market valuation and project future returns.
The PS Ratio does not tell you how cheap or expensive the stock is. It cannot be used to compare companies in different industries. It works better for companies within the same industry because these companies tend to have similar capital structures and profit margins. It works the best when comparing a company with itself in the past.
Merck KGaA PS Ratio Related Terms
Merck KGaA PS Ratio Historical Data
* Premium members only.
The historical data trend for Merck KGaA's PS 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 PS Ratio, along with its competitors' market caps and PS 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 PS Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Merck KGaA's PS Ratio distribution charts can be found below:
* The bar in red indicates where Merck KGaA's PS Ratio falls into.
The PS Ratio, or Price-to-Sales ratio, or Price/Sales, is a financial ratio used to compare a company's market price to its Revenue per Share. It is a ratio widely used to value stocks and it was first used by Ken Fisher.
Merck KGaA's Share Price of today is CHF130.30. Merck KGaA's Revenue per Share 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 CHF44.82.
* 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:
Merck KGaA (XSWX:MER) has a PS Ratio of 2.91 as of Jun. 29, 2026. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Merck KGaA and its competitors. This is near median its historical median of 2.95. Over the past decade, Merck KGaA's PS Ratio has ranged from 2.14 to 5.14. According to the industry distribution chart, Merck KGaA ranks #571 out of 949 companies in the Drug Manufacturers industry, placing it in the top 60.2%.
Is Merck KGaA's PS Ratio too high?
Merck KGaA's current PS Ratio of 2.91 is near median its 10-year median of 2.95. Over the past 10 years, this metric has ranged from a low of 2.14 to a high of 5.14. The Drug Manufacturers industry median PS Ratio is 2.25. Merck KGaA's value of 2.91 is 29.3% above this industry median. Based on the distribution chart, Merck KGaA ranks #571 out of 949 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 PS Ratio compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Merck KGaA ranks #571 out of 949 companies for PS Ratio. This places Merck KGaA in the lower half of its industry. The industry median PS Ratio is 2.25. Merck KGaA's value of 2.91 is 29.3% above this benchmark. Historically, Merck KGaA's own PS Ratio has ranged from 2.14 to 5.14 over the past decade. While the company's 10-year median is 2.95 vs. the industry median of 2.25, 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 PS Ratio for a Drug Manufacturers company?
The median PS Ratio among Drug Manufacturers companies is 2.25, based on 949 companies in the industry. Companies in the top quartile (top 25%) have a PS Ratio significantly above this median, while those in the bottom quartile fall well below. However, PS Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Merck KGaA's current PS Ratio of 2.91 is 29.3% 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 PS Ratio mean?
A high PS Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Sales ratio is the ratio of share price to a company's revenue per share. View historical data on Merck KGaA and its competitors. For the Drug Manufacturers industry, the median PS Ratio is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merck KGaA's current PS Ratio is 2.91, which is near median its own 10-year median of 2.95. 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 PS Ratio of 2.91. 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 PS Ratio is 2.91, which is near median its 10-year median of 2.95 and 29.3% above the Drug Manufacturers industry median of 2.25. 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 PS Ratio calculated?
PS Ratio is calculated from a company's financial statements. For Merck KGaA (XSWX:MER), the current PS Ratio is 2.91 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:
PS Ratio: 2.91 (near median its 10-year median of 2.95)
GF Value™: CHF125.76 vs. price of CHF130.30 (3.6% above fair value)
Industry Position: 29.3% above the Drug Manufacturers median (#571 of 949)
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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